Source: The State AG Report
Industry: Healthcare, Pharmaceuticals
Area of Law: Antitrust & Competition, Consumer Protection, Federal Agencies (FTC, CFPB, FCC)
- The FTC reached a settlement with Express Scripts, Inc. and its affiliates (collectively "Express Scripts") to resolve an administrative lawsuit alleging the pharmacy benefit manager violated Section 5 of the FTC Act by artificially inflating insulin prices.
- According to the complaint, Express Scripts allegedly used anticompetitive rebating practices to favor high-list-price insulin products over lower-list-price alternatives, which increased out-of-pocket costs for patients.
- Under the terms of the proposed consent order, Express Scripts must delink manufacturer compensation from drug list prices, shift its standard offering for retail community pharmacy reimbursement to an acquisition-cost-plus model, and reshore its group purchasing organization from Switzerland to the U.S., among other relief.
- As we have reported, this action is the latest in a series of enforcement efforts targeting PBMs and insulin pricing, including recent lawsuits filed by the AGs of Iowa, Mississippi, and Virginia.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
