PHILADELPHIA, PA – District Attorney Larry Krasner announced on Monday a significant legal move against nearly 20 pharmaceutical companies and pharmacy benefit managers (PBMs) for allegedly colluding to inflate the price of insulin, a vital medication for diabetics. The lawsuit accuses these entities of exploiting the market to raise prices far beyond production costs.
This legal action addresses the stark disparity between the cost of producing insulin—now as low as $2 per vial—and its current market price, which ranges from $300 to $700 for patients. This price surge is a dramatic increase from the $20-per-vial price seen in the 1990s. The lawsuit highlights that over 1.1 million Pennsylvanians, representing 11% of the adult population, have diabetes, with the rate in Philadelphia alone reaching 14% among adults.
A 2022 study revealed the dire consequence of these inflated prices: over 1.3 million Americans with diabetes have been forced to ration their insulin intake due to affordability issues. The lawsuit comes despite recent measures aimed at curbing costs, including a Senate Finance Committee investigation and executive actions by the Biden Administration to cap insulin costs for Medicare recipients. However, DA Krasner argues that these steps are insufficient without tougher federal regulations and consistent state policies.
The defendants, including major insulin producers Eli Lilly, Novo Nordisk, and Sanofi-Aventis, along with PBMs such as CVS Caremark, Express Scripts, and OptumRx, are accused of violating the Pennsylvania Unfair Trade Practices and Consumer Protection Law. These companies, responsible for a significant portion of the global insulin supply and PBM market, are now facing legal scrutiny for their pricing practices.
DA Krasner emphasized the importance of holding these corporations accountable, stating that justice involves not only changing harmful practices but also ensuring reparations for wrongful actions. Supporting Krasner’s stance, attorney Gregory B. Heller highlighted the lawsuit’s goal to enforce the same rules on billion-dollar healthcare conglomerates that ordinary citizens follow daily, aiming for equitable treatment and justice for affected individuals.
