From CNBC: 2024-10-09 16:21:18

FTC Chairwoman Lina Khan faced demands from CVS Health, UnitedHealth Group, and Cigna to recuse herself, citing bias in a lawsuit alleging drug middlemen inflated insulin costs. The companies argued the commissioners prejudged the case and violated due process. The FTC declined to comment on the motion on Wednesday.

UnitedHealth and Cigna also filed motions citing bias in the commissioners’ remarks about PBMs. The companies accused Khan, Bedoya, and Slaughter of having a biased perspective on pharmacy benefit managers. CVS, UnitedHealth, and Cigna all questioned the fairness and objectivity of the commissioners in handling the case.

The lawsuit by the FTC targets the three largest PBMs, alleging a system that inflates insulin prices. The case also involves affiliated group purchasing organizations, such as Zinc Health Services, Emisar Pharma, and Ascent Health Services. The legal action is part of the FTC’s ongoing investigation into the role of PBMs in rising drug costs.

CVS is facing challenges beyond the lawsuit, with the company considering a strategic review that could involve separating its insurer from retail pharmacies. The company’s shares have dropped over 20% this year, impacted by pressures in its insurance segment and pharmacy reimbursements. The motion filed by CVS alleges that Khan has had a negative view of PBMs throughout her career, while Slaughter and Bedoya have also expressed concerns about PBM practices.

The Biden administration and lawmakers are increasing scrutiny on PBMs, seeking more transparency in their business practices. As Americans struggle to afford prescription drugs, the spotlight on PBMs grows. Patients in the US pay significantly more for medications compared to other developed nations. This scrutiny has led to pressure on PBMs to be more transparent in their pricing and practices.



Read more at CNBC: CVS, UnitedHealth, Cigna say FTC should take Lina Khan off PBM case