On September 20, 2024, the Federal Trade Commission (FTC) initiated a lawsuit against the three largest pharmacy benefit managers (PBMs) in the United States, alleging that their practices have led to inflated insulin prices. The implicated PBMs include CVS Health’s Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx, which collectively serve 80% of the national prescription drug market.
Acting on behalf of employers and various government health programs, these PBMs are responsible for negotiating drug prices, managing payments to pharmacies, and determining the availability and pricing of drugs for consumers. The FTC complaint, which is currently confidential, accuses these PBMs of engaging in practices that not only distort competition but also negatively impact consumers by pushing more expensive insulin products that benefit the PBMs financially.
The FTC seeks to enforce measures that prevent these executives from promoting drugs that generate greater profits at the expense of consumer welfare and fair market practices. This action underscores the government’s growing scrutiny of healthcare middlemen whose actions impact drug costs and availability.
