FTC sues insulin middlemen for pocketing billions while patients face high costs
The FTC has sued major pharmacy benefit managers for inflating insulin prices through a rebate system, leading to a 600% price increase over two decades, impacting diabetics' access to medication.
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The Federal Trade Commission (FTC) has filed a lawsuit against major pharmacy benefit managers (PBMs) including CVS Health's Caremark Rx, Cigna's Express Scripts, and United Health Group's OptumRx, alleging that they have contributed to the inflated prices of insulin. The FTC claims that these PBMs have established a "perverse drug rebate system" that has led to artificially high costs for insulin, despite the drug being inexpensive to produce. While out-of-pocket costs for some patients have decreased to $35 a month, the overall price of insulin has surged by 600% over the past two decades, forcing many diabetics to ration their medication. The lawsuit highlights that PBMs profit from rebates and fees tied to the list prices of drugs, incentivizing them to favor higher-priced insulin products over more affordable alternatives. The Pharmaceutical Care Management Association, representing PBMs, has denied the allegations, arguing that the FTC's claims do not accurately reflect the complexities of the prescription drug supply chain. The lawsuit could potentially lead to lower costs for patients if successful. Recent legislative efforts, including the Inflation Reduction Act, have aimed to cap insulin costs for Medicare patients, and major insulin manufacturers have pledged to reduce prices.
- FTC sues major pharmacy benefit managers for inflating insulin prices.
- The lawsuit claims PBMs profit from a rebate system that favors high-priced insulin.
- Insulin prices have increased by 600% over the last two decades.
- Many diabetics have had to ration insulin due to high costs.
- Recent laws aim to cap insulin costs and improve affordability for patients.
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