Oregon’s attorney general filed a lawsuit Wednesday against three insulin manufacturers and the nation’s largest pharmacy benefit managers (PBMs), alleging they worked together to inflate the price of insulin.
In a 173-page complaint, the state alleges that the pharmaceutical companies deliberately overcharged for their products, and then paid substantial rebates and fees to the PBMs. As part of the alleged scheme, PBMs kept lower-cost drugs off their approved list of prescription drugs.
“The higher the list price, the larger the rebate — and the greater the profit for both sides,” a press release from the attorney general’s office claims.
The state alleges the companies violated Oregon’s Unlawful Trade Practices Act, and is seeking $900 million in damages.
The lawsuit, filed in Multnomah County Circuit Court, names three insulin manufacturers — Novo Nordisk, Sanofi, and Eli Lilly — and three pharmacy benefit managers — Express Scripts, CVS Caremark and Optum.
Oregon’s filing follows a flurry of lawsuits filed by hundreds of local governments, unions, school districts and states, alleging they were bilked by the companies and overpaid for these drugs.
Most of those suits have been moved to federal court and consolidated into a single case in U.S. District Court in the District of New Jersey.
Michigan has, like Oregon, filed a lawsuit in state court alleging violations of the state’s consumer protection act. The companies in that case successfully argued that the state’s law does not apply to their sale of insulin. Michigan has appealed that judgement to the state’s supreme court.
Oregon Attorney General Dan Rayfield said the lawsuit is the first in a series of cases his office is pursuing related to drug prices.
“We are working to bring the cost of prescription drugs down for working families, using the tools we have to hold these powerful companies accountable. Oregonians can expect more action in the near future,” Rayfield said in a prepared statement.
In 2022, the Inflation Reduction Act capped insulin copays at $35 for Americans on Medicare. In 2023, Eli Lilly announced it was cutting the list price of insulin and expanding a patient assistance program for uninsured and underinsured patients so they would pay no more than $35 a month. Novo Nordisk and Sanofi offer similar assistance programs.
This is a breaking news story and may be updated.
