Pharmaceutical Giants Demand FTC Commissioners Recuse Themselves from Insulin Price-Gouging Lawsuit
CVS Health and UnitedHealth Group have filed motions with the Federal Trade Commission (FTC) demanding that Chairwoman Lina Khan and two other commissioners recuse themselves from a lawsuit accusing the companies of inflating insulin costs for Americans. The companies argue that the commissioners have made public statements demonstrating “serious bias” against pharmacy benefit managers (PBMs), which they claim have been unfairly maligned as “price gougers.”
The lawsuit, filed last month, alleges that the three largest PBMs, including CVS Health’s Caremark and UnitedHealth Group’s Optum Rx, have created a system that prioritizes high rebates from manufacturers, leading to artificially inflated insulin list prices. The FTC has been investigating PBMs and their role in insulin prices since 2022.
CVS and UnitedHealth argue that Khan, as well as commissioners Alvaro Bedoya and Rebecca Kelly Slaughter, have made statements that indicate they have prejudged the matter and therefore should recuse themselves from the case. The companies point to statements made by the commissioners about the allegedly “disturbing,” “unacceptable,” and “rotten” rebating practices of PBMs and how they create “competitive distortions in pharmaceutical markets.”
The healthcare giants also allege that the commissioners attended closed events to help fundraise for anti-PBM lobbying groups, which have vilified PBMs as “bloodsuckers” and “vampires.” The Biden administration and lawmakers on both sides of the aisle have increased pressure on PBMs, seeking to increase transparency into their business practices as many patients struggle to afford prescription drugs.
The FTC has not yet responded to the motions, but it’s not the first time that corporate giants have pushed for Khan to be disqualified from cases or investigations, citing concerns about her objectivity. Khan has resisted those calls, saying she has never prejudged any case or set of facts.
Leave a Reply