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Florida sues insulin makers, PBMs over alleged price collusion

Florida Attorney General James Uthmeier filed an antitrust lawsuit accusing major drug manufacturers and pharmacy benefit managers of conspiring to raise insulin costs.

Tobias Oakley

September 27, 20262 min read

Legal Justice - illustration, Jake Team LLC

Florida Attorney General James Uthmeier filed a lawsuit before the 11th Judicial Circuit serving Miami-Dade County against three insulin makers, as well as three pharmacy benefit managers and three companies involved in rebates. The complaint alleges that these entities conspired to inflate the prices of diabetes medications. The suit names Eli Lilly, Novo Nordisk and Sanofi, with the state saying they supply the majority of global insulin.

Also on the list are CVS Caremark and Express Scripts, along with OptumRx, the rebate firms Zinc, Ascent and Emisar, and UnitedHealthcare Insurance.

The legal action claims that manufacturers raised published list prices for insulin and related drugs, then provided rebates and fees to pharmacy benefit managers in exchange for preferred placement on formularies. Uthmeier stated that all defendants benefited from the increased costs. He noted that while the final negotiated price is lower, consumers and independent pharmacists often face the higher sticker price.

This is particularly true for patients without insurance, those in deductibles, or those paying percentage-based coinsurance.

During a news conference in Tampa, Uthmeier referenced testimony from a Lilly executive regarding the Humalog brand. The executive indicated that for every $280 vial, approximately $210, or 75%, was provided to pharmacy benefit managers as rebates or discounts. According to the lawsuit, a vial of insulin costs just a few dollars to make.

The suit also covers GLP-1 drugs and combination medicines such as Ozempic, Trulicity, Victoza and Soliqua.

The state seeks a permanent injunction, damages, and civil penalties to ensure patients have access to affordable medication. The lawsuit argues that the current pricing structure has created severe financial strain for many users. It cites data showing that roughly 14% of insulin users in the United States, a group numbering over 1.1 million people, faced catastrophic spending.

This refers to devoting at least 40% of their remaining income after food and housing to insulin alone. Additionally, the complaint states that one in four patients said they had rationed their insulin because of cost.

The suit alleges two violations of Florida's law governing deceptive and unfair trade practices, plus another violation of Florida's Antitrust Act. Uthmeier emphasized that Florida residents should not have to bear the burden of these high prices. The lawsuit notes that approximately 2.3 million adults in Florida have diabetes.

The companies had not publicly responded to the lawsuit in the coverage reviewed for this story, and the claims are allegations that have not been proven in court.

Source: wlrn.org.

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wlrn.org

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Tobias Oakley

Tobias Oakley writes about community life, schools, public safety, and local events in Winter Springs.

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