From PhillyVoice · · 1m 50s
Pennsylvania sues pharma companies for insulin price collusion
Pennsylvania sues drug makers and PBMs over 1,000% insulin price hikes.
In brief
Pennsylvania sues drug makers and PBMs over 1,000% insulin price hikes. Pennsylvania sued drug companies and pharmacy benefit managers for allegedly raising insulin prices by over 1,000% since the mid-2000s. Originally reported by PhillyVoice.
Pennsylvania sues drug makers and PBMs
Pennsylvania filed a lawsuit against pharmaceutical companies and pharmacy benefit managers for allegedly colluding to inflate insulin prices by more than 1,000%.
Affected 1.3 million diabetics
The lawsuit claims 1.3 million Pennsylvania residents with diabetes and 3.5 million with prediabetes were harmed by artificially inflated insulin prices.
Price hikes from $2 to $300-$700
Insulin prices jumped from $2 to $300-$700 per vial, despite the drugs costing less than $2 to manufacture, since the mid-2000s.
PBM quid pro quo deals
Pharmaceutical companies allegedly paid PBMs a portion of profits to include insulin in their plans, creating a quid pro quo arrangement.
PBM drug exclusions
Around 2012, PBMs began excluding one or more drugs that treat the same condition to boost their own profits.
Attorney General's claim
The lawsuit states that the PBM Defendants control which drugs are available for most Pennsylvania diabetics and inflate prices for life-sustaining drugs.
Restitution and penalties
Attorney General Dave Sunday seeks restitution for affected patients and $1,000 penalties per violation of the Unfair Trade Practices and Consumer Protection Law.
Philadelphia DA lawsuit
Philadelphia District Attorney Larry Krasner filed a similar lawsuit against the same pharmaceutical companies and PBMs in 2024.
Price cuts in response
Drug manufacturers like Eli Lilly and Novo Nordisk began slashing insulin prices in 2024 after significant backlash and federal pressure.
Inflation Reduction Act impact
The Inflation Reduction Act capped insulin costs at $35 per month for seniors on Medicare starting in 2023.
The big picture
Pennsylvania sued drug companies and pharmacy benefit managers for allegedly raising insulin prices by over 1,000% since the mid-2000s.
