Pharmacy Benefit Managers and Insulin Makers Face Price Scheme Lawsuit (CVS, ESRX)
Three of the nation’s leading pharmacy benefit managers (PBM) have been named in a lawsuit charging that they participated with major insulin manufacturers in a price fixing scheme. CVS Health Corp. (CVS
) OptumRx unit were named in a federal court filing in New Jersey last week.
The PBMs are alleged to have been part of a collusion scheme along with Eli Lilly & Co. (LLY
Second Case Against Insulin Makers
Four individual plaintiffs were joined by a nonprofit organization called the Type 1 Diabetes Defense Foundation is the suit.
In January, the three insulin makers were named as defendants in a separate federal court filing in Massachusetts, alleging that the companies significantly increased list prices of lifesaving insulin, raising them in lockstep and harming patients’ interests.
The cases come amid growing outcry over the nation’s opaque drug-pricing system which is seen as benefiting both drug manufacturers as well as intermediaries.
Along with the accusations that the drug makers colluded to increase the drug prices in a planned manner, which resulted in price increases of more than 150%, the plaintiffs also allege that the drug makers shared additional revenues with PBMs through rebates. (For more, see Supply Chain: The Big Leak Fueling High Drug Prices.)
Earlier in November, Senator Bernie Sanders requested the Justice department and the Federal Trade Commission investigate insulin drug makers for alleged price fixing. (For more, see Bernie Sanders Slams Drug Price Fixing.)
Responses from Drug Makers and PBMs
A CVS spokesperson claims that PBMs don’t have any role in determining drug prices, the allegations are built on a false premise and they are without merit. Novo Nordisk too disagrees with the allegations. Spokesmen for Express Scripts and Sanofi denied the allegations and said the companies would defend themselves vigorously, reports Bloomberg BNA.
Filed under: General Problems
Unknown to me at the time my mother could not afford her insulin and she died. They believe she had not used her insulin and could of caused her death. We could not prove it. What good would it be to prove it. I wanted my mom back.
People like this is killing our people in this country especially our elderly. We need to fight for them because they can’t .
These companies never go to prison they just fine them and some person spends the money in some polititicans family or a friend of theirs.
I’m so tired of this. We buy politicians and families all their medical insurance they get it forever insurance. This is SO WRONG! Stop doing this they can pay their own insurance they can do better than my mom did. She paid for their insurance her whole life and look what they did to her.
We don’t even need half of these guys what is going on they sit on their butts and ask for raises for themselves and get it. Vote themselves a raise.