Oregon Attorney General Dan Rayfield filed a lawsuit seeking $900 million in damages from the nation’s largest insulin manufacturers and pharmacy benefit managers (PBMs). The complaint alleges that they worked together to artificially inflate the price of insulin and other critical diabetes medications at the expense of Oregon patients and families.
The lawsuit—which alleges violations of Oregon’s Unlawful Trade Practices Act—was filed in Multnomah County Circuit Court on Jan. 7. It names three insulin manufacturers (Novo Nordisk, Sanofi and Eli Lilly) and three PBMs (Express Scripts, CVS Caremark and Optum).
See also: How digital twin tech can make a big difference in employers’ GLP-1 costs
“This is about more than insulin prices; it’s about the crushing cost pressures families are facing and the very real harm that comes when corporations exploit people who have no choice but to pay,” Rayfield said in a statement. “When companies jack up the price of life-saving drugs, they don’t just impact wallets; they exacerbate stress, anxiety and mental health crises for people who are already struggling to make ends meet.”
According to the complaint, the manufacturers and PBMs allegedly worked in concert to ensure an “enormous” boost in insulin prices. To secure favorable placement on PBM formularies, manufacturers allegedly raised list prices and then paid substantial rebates and fees back to PBMs. The higher the list price, the larger the rebate.
The lawsuit further claims that PBMs and manufacturers intentionally excluded lower-cost insulin options from formularies, thus denying patients access to more affordable treatments and locking in inflated prices across the market.
The Oregon Department of Justice is making a “broader enforcement push” to confront prescription drug pricing practices and reduce costs for consumers, according to the AG’s office, which added that Rayfield is actively examining the role of PBMs and other entities in the prescription drug supply chain.
“Oregonians can expect more action in the near future,” Rayfield said.
