Federal Trade Commission accuses three drug middlemen of inflating insulin prices

The Federal Trade Commission (FTC) has accused three drug middlemen, or pharmaceutical benefit managers (PBMs), of colluding to inflate the cost of insulin and other drugs. PBMs are companies that serve as the intermediary between drug manufacturers and health insurance companies. They negotiate drug prices, formulary management, and manage drug benefit programs.

According to the FTC, these PBMs may have engaged in anti-competitive practices that unfairly raised the prices of insulin and other medications. This could mean they inflated the prices above the cost established through negotiations with drug manufacturers or that they created higher consumer costs.

Such practices are a concern because they can lead to higher out-of-pocket expenses for consumers—many of whom rely on these drugs for their survival—and higher costs for health insurers. These potential price inflations could violate federal trade law, which aims to promote fair competition for the benefit of consumers.

The FTC is now investigating these allegations and, depending on the findings, may take legal action against said companies to address these potentially unfair and harmful business practices. The names of the these three influential pharmaceutical intermediaries accused by the FTC have not been released yet.