Pharmacy Benefit Managers Sue FTC Over Insulin Case

The three largest pharmacy benefit managers (PBMs) in the U.S.—CVS Caremark, OptumRx, and Express Scripts—are embroiled in legal battles with the FTC over allegations of artificially inflating insulin prices through unfair rebate practices. Administrative Law Judge D. Michael Chappell recently ruled that the PBMs must face the FTC in a consolidated trial, dismissing their claims that joint proceedings would create confusion and risk the disclosure of confidential information. In response, the PBMs have filed a lawsuit against the FTC, arguing that the agency's in-house case is unconstitutional and violates their due process rights, asserting that it should be heard in federal court instead. The FTC has criticized this lawsuit as a distraction from the serious allegations against the PBMs. The ongoing litigation highlights tensions between regulatory bodies and major corporations regarding pricing practices in the healthcare industry. As the case unfolds, it raises questions about the balance of power between regulators and the entities they oversee.