On Friday, the Federal Trade Commission filed lawsuits against three of the largest pharmacy benefit managers, claiming the firms, which handle nearly 80% of prescriptions in the United States, are responsible for the increased cost of insulin. The suits come months after the agency released the findings of an investigation into the firm’s business practices.
Thirty per cent. According to the FTC, that’s how many Americans have said they cut or skipped dosages of their medications because of the rising costs of prescriptions.
Earlier this week, Express Scripts sued the FTC, demanding that the agency retract its July report, which it said was “unfair, biased, erroneous and defamatory.” In the lawsuit, Express Scripts charges that the FTC “ignored” the data and documents submitted by the companies while relying on “unverified comments” from their competitors.
FTC officials have for years criticized PBMs for their alleged role in driving up the prices of prescription drugs. The government, in 2022, asked for documents and information from six corporations about their business activities to initiate an investigation of the firms. The benefit managers have been described as “dominant gatekeepers” that have “price gouged” Americans for prescription drugs, according to FTC chair Lina Khan. Ohio Attorney General David Yost filed a lawsuit last year against several companies, including Express Scripts, for allegedly inflating the price of drugs.
Outside the country, pharmacy benefit managers also face lawsuits for business practices. The FTC alleges that pharmacy benefit managers Eli Lilly, Sanofi, and Novo Nordisk dominate the insulin market. It could take further action against any one of these three companies at a later date.
