The Federal Trade Commission (FTC) has taken a significant step in tackling the high cost of insulin by filing a new lawsuit against three of the top pharmacy benefit managers (PBMs) in the United States. The lawsuit targets CVS Health's Caremark Rx, Cigna's Express Scripts, and United Health Group's OptumRx, alleging that these companies have engaged in a "perverse drug rebate system" that artificially inflates the cost of insulin. This move by the FTC aims to alleviate the financial burden on millions of Americans with diabetes who rely on insulin to survive.

PBMs act as intermediaries between drug manufacturers and insurance providers, with the goal of negotiating lower drug prices. However, the FTC's lawsuit claims that the revenue of PBMs is tied to rebates and fees based on a percentage of a drug's list price, leading to higher costs for patients. The FTC argues that PBMs favored high list price, highly rebated insulin products over more affordable alternatives, exacerbating the affordability crisis for individuals with diabetes.

The lawsuit highlights a troubling trend where the cost of insulin has surged by 600% over the past two decades, pushing many patients to ration their medication or even forgo treatment altogether. The FTC stated that one in four insulin patients was unable to afford their medication in 2019, underscoring the urgent need for action to address the soaring prices of this life-saving drug. If successful, the FTC's legal action against the PBMs could help drive down costs for patients at the pharmacy counter, providing much-needed relief to those grappling with unaffordable insulin prices.