In the United States, around 8 million individuals rely on insulin to manage their diabetes. However, the cost of insulin has skyrocketed over the past decade, leaving many patients unable to afford the life-saving medication. The Federal Trade Commission (FTC) has taken a bold step to address this issue by suing three pharmacy benefit managers (PBMs) for allegedly inflating insulin prices.

PBMs are middlemen that work with insurance companies to negotiate discounts from drug manufacturers. In theory, they should save patients money. But in reality, the FTC claims that they have created a rebate system that prioritizes high rebates from drug manufacturers, leading to inflated insulin prices. This system has resulted in billions of dollars in rebates and fees for the PBMs and their health plan sponsor clients, but at the expense of vulnerable patients who must pay significantly more out-of-pocket for their critical medications.

The "Big Three" PBMs - UnitedHealth Group's Optum Rx, CVS Health's Caremark, and Cigna's Express Scripts - oversee around 80% of all prescription drug plans in the U.S. They have created a rebate system that rewards drug manufacturers for producing expensive insulin products. This has led to a situation where patients are forced to pay higher prices for medications that are not necessarily the most effective or affordable.

The FTC's lawsuit is not the first time that PBMs have faced scrutiny. In July, a report released by the commission accused PBMs of hiking up drug prices. The report was met with backlash from the PBM industry, which claimed that the report was inaccurate and ideologically driven. However, the FTC's lawsuit is a clear indication that they are serious about addressing the issue of inflated drug prices.

The Insulin War: How Middlemen Hijacked Diabetes Care

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