The Federal Trade Commission (FTC) has filed a lawsuit against three major U.S. pharmacy benefit managers (PBMs)—Optum Rx (UnitedHealth), Caremark (CVS), and Express Scripts (Cigna)—alleging that they inflate insulin prices for profit. These PBMs manage about 80% of U.S. prescriptions and are accused of creating a rebate system that prioritizes high-list-price insulins to secure bigger rebates from drug manufacturers, thus raising costs for patients. The FTC may also take action against insulin producers Eli Lilly, Sanofi, and Novo Nordisk for their role in the price increases.

The lawsuit is part of a broader FTC investigation into PBMs and drug pricing, which began in 2022. The agency claims that PBMs’ conduct has led to skyrocketing insulin prices, contributing to hardships for millions of diabetic Americans. The White House has expressed concern over corporate greed in drug pricing but has not commented directly on the suit.

PBMs and drugmakers have responded defensively, with PBMs stating they negotiate to reduce prices, while insulin producers point to recent price cuts and savings programs. Both groups blame each other for the high costs in the U.S. healthcare system. The FTC aims to restore competition in the insulin market and reduce prices for consumers.

Full article from CNBC news here.