CVS, UnitedHealth Seek FTC Recusal in PBM Case

CVS Health and UnitedHealth Group have requested the recusal of Federal Trade Commission Chair Lina Khan and Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter from a lawsuit accusing pharmacy benefit managers (PBMs) of inflating insulin prices. The companies argue that the commissioners have shown bias through public statements labeling PBMs as 'price gougers' and suggesting they manipulate drug pricing, which they claim prejudges the case and violates due process. The FTC's lawsuit alleges that PBMs, including CVS Health's Caremark, UnitedHealth's Optum Rx, and Cigna's Express Scripts, have developed a system prioritizing high manufacturer rebates, resulting in inflated insulin prices. These companies control nearly 80% of the U.S. prescription market, and their practices allegedly favor more expensive insulins over cheaper alternatives, raising consumer costs. This motion mirrors similar recusal requests from other companies in prior cases involving Khan, though she has consistently denied any bias.