Pharmacy Benefit Managers and Insulin Manufacturers Alleged to Collude in Price Gouging Scheme, Union Files Lawsuit

In a shocking development, the International Union of Operating Engineers Local No. 478 Health Benefits Fund has filed a complaint in the US District Court for the District of Connecticut against major insulin manufacturers and pharmacy benefit managers. The allegations made in the complaint accuse these companies of participating in a deceptive pricing scheme that led to the fund overpaying for diabetes medications.

According to the lawsuit, Eli Lilly and Co., Novo Nordisk Inc., and Sanofi-Aventis U.S. LLC collaborated with pharmacy benefit managers such as CVS Caremark, Express Scripts, and OptumRx to artificially inflate the list prices of insulin. This pricing manipulation allegedly caused the health benefits fund to pay more than necessary for these crucial medications.

The lawsuit suggests that PBMs and insulin manufacturers engaged in deceptive tactics to maximize profits at the expense of patients and health insurance providers. The plaintiffs argue that these actions violated antitrust laws and were detrimental to those who rely on insulin to manage their diabetes.

The International Union of Operating Engineers Local No. 478 Health Benefits Fund is seeking damages and restitution for the overpayment caused by this alleged pricing scheme. The union believes that it has been unfairly treated by these companies, which have profited off its members’ health expenses without regard for their well-being.

This complaint marks another step forward in efforts to combat unfair pricing practices within the healthcare industry, as it highlights how PBMs can manipulate drug prices through collusion with manufacturers.

As this legal battle unfolds, we will continue to monitor developments closely and report on any updates or changes in this complex situation.