The Federal Trade Commission (FTC) has accused three major pharmaceutical middlemen of illicitly inflating the prices of insulin, a life-saving medication for many people with diabetes. The middlemen, also known as pharmacy benefit managers (PBMs), include OptumRx, Express Scripts, and CVS Caremark.
The FTC alleges that these companies negotiated secret deals with pharmaceutical manufacturers to secure rebates on insulin prices. These rebates were often not passed onto consumers, leading to artificially high prices at the retail level. In some cases, PBMs reportedly earned more from the rebates than the cost of providing the insulin. This has led to a huge burden on patients who require insulin for treatment.
These accusations are part of a wider concern over the role of PBMs in the U.S. health care system. These companies act as intermediaries between drug manufacturers and pharmacies, supposedly to negotiate lower drug prices. However, critics argue that they often fail to pass these savings onto consumers and may even drive up prices. The figure of PBMs in drug pricing has raised several debates, hence efforts are being made to increase transparency in this area.
The FTC’s action is still in the early stages, and the accused companies are expected to defend themselves against the accusations. Depending on the outcome, this could lead to major changes in how drug prices are negotiated and set in the U.S.
