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FTC to sue PBMs over drug prices including insulin

FTC Chairwoman Lina Khan testifies during the House Appropriations Subcommittee on Financial Services and General Government hearing titled “Fiscal Year 2025 Request for the Federal Trade Commission,” in Rayburn Building on Wednesday, May 15, 2024.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

The Federal Trade Commission is planning to sue three large U.S. health companies over their practices as middlemen who negotiate prices for medications such as insulin, as the agency argues they inflate costs for patients, a source familiar with the matter told CNBC on Wednesday.

The suits are expected to target the three biggest so-called pharmacy benefit managers, UnitedHealth Group‘s Optum Rx, CVS Health‘s Caremark and Cigna‘s Express Scripts, the source said, confirming an earlier Wall Street Journal report on Wednesday about the agency’s plans. All three are owned by or connected to health insurers. 

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