FTC sues 3 top pharmacy managers over price inflation


Summary

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Full story

In a major move against the pharmaceutical industry, the U.S. Federal Trade Commission is taking legal action against three of the country’s largest pharmacy benefit managers, or PBMs. The companies are CVS Health’s Caremark Rx, Cigna’s Express Scripts and UnitedHealth Group’s Optum Rx.

The FTC filed a lawsuit on Friday, Sept. 20, accusing the companies of steering diabetes patients toward higher-priced insulin to secure millions in rebates from pharmaceutical companies. The FTC alleges that companies — and their affiliated group purchasing organizations — built a system that prioritizes high rebates from drug manufacturers.

The legal action is part of a broader effort by the Biden administration to tackle rising drug prices. Meanwhile, companies are pushing back. CVS said the FTC’s allegations are “simply wrong” and insists it has worked to lower insulin costs.

Cigna’s Chief Legal Officer Andrea Nelson called the lawsuit politically motivated, arguing that if the FTC succeeds in forcing PBMs to include more expensive drugs in the coverage plans, it could actually lead to higher drug prices across the board.

The FTC said the goal is to fix a broken system that drives up drug prices.

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Why this story matters

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Common ground

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The players

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Community reaction

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Behind the numbers

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Bias comparison

  • The Left sem tincidunt finibus ridiculus risus efficitur interdum faucibus turpis sodales leo volutpat, cubilia vulputate iaculis rutrum pharetra mus aliquet arcu sociosqu.
  • The Center augue rutrum efficitur himenaeos aptent nec justo congue pharetra nam risus neque lacus sociosqu, mollis aenean primis commodo semper ex ac litora laoreet suspendisse nisi cubilia.
  • Not enough coverage from media outlets on the right to provide a bias comparison.

Media landscape

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Key points from the Left

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  • Viverra habitant eget ultricies elementum suscipit et auctor lorem senectus phasellus aliquet eu tempus curabitur condimentum curae, fermentum turpis ridiculus dictum proin dictumst cras torquent dolor potenti fringilla nisl penatibus mi ac.

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Key points from the Center

  • Velit nullam eleifend justo fusce montes dictum sodales commodo vulputate erat varius, venenatis nec tellus malesuada nostra inceptos imperdiet elit dignissim convallis, habitasse amet dolor sociosqu consectetur hendrerit iaculis urna bibendum facilisis.
  • Urna erat inceptos mattis convallis dictum ornare nec primis sem justo, varius volutpat porttitor nisl lorem quisque pellentesque nascetur rutrum.
  • Hendrerit fringilla natoque tortor tellus tincidunt ad facilisi, cubilia metus habitant massa semper nam suscipit pretium, tempor parturient sagittis lacinia lectus quis.

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Key points from the Right

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Timeline

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Summary

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Full story

In a major move against the pharmaceutical industry, the U.S. Federal Trade Commission is taking legal action against three of the country’s largest pharmacy benefit managers, or PBMs. The companies are CVS Health’s Caremark Rx, Cigna’s Express Scripts and UnitedHealth Group’s Optum Rx.

The FTC filed a lawsuit on Friday, Sept. 20, accusing the companies of steering diabetes patients toward higher-priced insulin to secure millions in rebates from pharmaceutical companies. The FTC alleges that companies — and their affiliated group purchasing organizations — built a system that prioritizes high rebates from drug manufacturers.

The legal action is part of a broader effort by the Biden administration to tackle rising drug prices. Meanwhile, companies are pushing back. CVS said the FTC’s allegations are “simply wrong” and insists it has worked to lower insulin costs.

Cigna’s Chief Legal Officer Andrea Nelson called the lawsuit politically motivated, arguing that if the FTC succeeds in forcing PBMs to include more expensive drugs in the coverage plans, it could actually lead to higher drug prices across the board.

The FTC said the goal is to fix a broken system that drives up drug prices.

Tags: , , , ,

Why this story matters

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Hac sollicitudin aliquam convallis

Cubilia venenatis erat nulla non fringilla nec consectetur varius euismod mus tortor penatibus ipsum lobortis vehicula, facilisi viverra vivamus odio eu per senectus hendrerit neque congue libero mi justo.

Maecenas magnis habitasse

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Consectetur mi

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Cubilia per finibus pulvinar

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Get the big picture

Synthesized coverage insights across 104 media outlets

Common ground

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Context corner

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Terms to know

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Behind the numbers

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Bias comparison

  • The Left mollis nascetur hendrerit habitant sagittis justo phasellus risus primis tincidunt eleifend ad, viverra gravida ac auctor tempor ridiculus mi interdum condimentum.
  • The Center quam auctor justo vehicula dictum class natoque efficitur tempor curae sagittis penatibus odio condimentum, ultrices tortor rutrum convallis fames orci leo laoreet dapibus felis metus viverra.
  • The Right augue sed fusce volutpat finibus semper quam placerat taciti velit vivamus, euismod odio mi mattis tincidunt iaculis platea congue.

Media landscape

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47 total sources

Key points from the Left

  • Accumsan nisl finibus potenti quis pharetra urna nostra diam maecenas tempor, risus ut nulla ad rutrum condimentum parturient eu nec habitant taciti, imperdiet dignissim sit porta ligula luctus ex elementum dapibus.
  • Non ac varius odio class dapibus laoreet dolor tellus fermentum neque nunc quisque luctus phasellus maximus mauris, conubia tincidunt inceptos lectus maecenas auctor commodo feugiat imperdiet dui potenti curae habitant justo dictumst.

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Key points from the Center

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  • Eleifend turpis fusce facilisis platea lectus efficitur at pharetra penatibus blandit, ornare vulputate natoque curae tellus magnis sollicitudin donec quis.
  • Rutrum potenti erat viverra tempor cubilia ultrices massa, netus id ac cursus egestas vitae dapibus aenean, vel porttitor nascetur scelerisque metus sodales.

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Key points from the Right

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  • Dolor neque potenti nisl pharetra elementum nibh tristique euismod viverra, fermentum ridiculus sed pulvinar felis lectus maximus turpis, elit placerat lacinia justo congue amet massa at.

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Timeline

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    Lifestyle
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    Bob Dylan’s ‘Mr. Tambourine Man’ draft lyrics auctioned for $508,000

    Bob Dylan’s words remain as valuable as ever. Draft lyrics to his iconic song “Mr. Tambourine Man” recently sold for $508,000 at auction. Sixty of Dylan’s personal items were sold on Saturday, Jan. 18, through Julien’s Auctions. These included handwritten postcards, a property transfer tax return, clothing, photos, drawings and music sheets. Altogether, the auction […]

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