The state of Oregon has filed a $900 million lawsuit against American insulin manufacturers and pharmacy benefit managers (PBMs). According to the lawsuit, drug manufacturers and PBMs colluded in violation of the state’s Unlawful Trade Practices Act to artificially inflate the prices of insulin and other life-saving diabetes medications, harming Oregon diabetics and their families. The lawsuit targets Novo Nordisk, Sanofi, and Eli Lilly, the nation’s largest insulin manufacturers, as well as three PBMs: Express Scripts, CVS Caremark, and Optum.
The lawsuit alleges that drug manufacturers and PBMs worked together to sharply increase insulin prices. Manufacturers allegedly hiked list prices for the drugs, paying substantial fees and rebates to PBMs. In turn, the PBMs placed the drugs in their formularies. As list prices increase, so do the rebates. In many cases, manufacturers and PBMs deliberately omitted lower-cost insulin options from formularies, forcing patients to pay higher prices.
The Oregon Department of Justice announced the lawsuit as part of broader enforcement efforts to address drug pricing practices that harm consumers due to increasing prices. The state is also analyzing the role of PBMs and similar entities in the prescription drug supply claim for irregularities.
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