Pennsylvania Sues Insulin Makers and PBMs Over Pricing

Pennsylvania Attorney General Dave Sunday has filed suit against three insulin manufacturers and several pharmacy benefit managers, accusing them of colluding to drive up insulin prices and patients' out-of-pocket spending, according to Becker's Hospital Review.

The complaint, brought by the AG's Antitrust Section in Commonwealth Court this week, alleges violations of Pennsylvania's Unfair Trade Practices and Consumer Protection Law, along with unjust enrichment and civil conspiracy. The core claim is familiar: critics say a rebate system tying list prices to the payments manufacturers make to PBMs for favorable formulary placement pushes sticker prices higher, leaving insured patients paying more at the pharmacy counter.

Pennsylvania joins a widening line of states and federal regulators scrutinizing insulin pricing and PBM practices. The Federal Trade Commission has pursued similar allegations against the largest PBMs, and multiple state attorneys general have filed comparable suits. The outcome could shape how rebates are disclosed and how much diabetic patients ultimately pay.