The County of Bucks today filed a lawsuit against several major pharmacy benefit managers (PBMs) and insulin manufacturers, contending that these healthcare giants have for decades colluded to unfairly increase the cost of insulin and other diabetes medications – essential medications needed daily by thousands of Bucks County residents and millions of Americans with diabetes.
Throughout the past two decades, insulin costs have skyrocketed by more than 1,000%, with medications that cost manufacturers approximately $2 per vial to produce being sold to patients for hundreds of dollars. PBMs have allegedly used their control over which drugs get covered by insurance to demand billions in hidden payments from manufacturers, favoring higher-priced medications that offer them larger payouts.
“Insulin was discovered over a hundred years ago, and its inventors sold their patents for just $1 because they wanted to save lives. But today insulin costs more in America than any other country in the world," said Commissioner Chair Bob Harvie. “As the father of a child with diabetes, this issue hits close to home for me. It is our job as County Commissioners to ensure that Bucks County employees and our wider community pay fair prices for insulin.”
The lawsuit alleges that Bucks County, which runs its own health plan for employees and their families, has paid excessively high prices for insulin and other diabetes medications because of the predatory pricing scheme. The County is seeking financial compensation for overpayments forced upon taxpayers and health plan members as well as a court order to stop the defendants' unlawful pricing practices going forward.
"Manufacturers and middlemen have rigged America’s drug pricing system, making insulin incredibly expensive for the families covered by our County health plan," said Bucks County Solicitor Amy Fitzpatrick. "This lawsuit aims to recover the taxpayer funds taken from our County health plan due to this pricing conspiracy and stop these companies from charging unreasonable prices for life-saving medication."
The lawsuit was filed concurrently with a consumer protection case against PBMs and manufacturers over insulin prices brought by Bucks County District Attorney Jen Schorn.
At Friday’s news conference, District Attorney Schorn emphasized the significance of the lawsuits against major PBMs and insulin manufacturers.
"We are dedicated to combating this scheme using all available resources, and I believe there is no more deserving cause to partner with the Bucks County Government Administration in this fight," she said.
District Attorney Schorn further amplified the urgency of the situation by reading a letter from a close friend whose son lives with type 1 diabetes. "Their words are far more powerful than anything I could say," she noted.
In the letter, the friend wrote, “Type 1 diabetes is a 100 percent fatal disease, and the only reason my son is here today is because of one thing: insulin. As a mother, I will always worry, in addition to the daily struggles of managing type 1 and the countless possible complications that can accompany this disease. What if someday he cannot afford his insulin? Sadly, many young adults face this realization when they age off their parents' medical insurance, forcing them to make dire decisions like rationing their insulin. Why has insulin become a privilege in this country? Insulin is not a luxury; it is literally life support.”
Her son's words resonated deeply: "Insulin is as crucial to me to live as the air you and I breathe."
Bucks County's legal action, filed in the U.S. District Court for the District of New Jersey as part of the consolidated Insulin Pricing Litigation, aims to hold PBM giants CVS Caremark, Express Scripts, and OptumRx, along with insulin manufacturers Eli Lilly, Novo Nordisk, and Sanofi financially responsible for their alleged pricing manipulation.
The County is represented by the four firms serving as co-lead counsel for the self-funded payer track – Baron & Budd; Levin Papantonio; Kozyak Tropin & Throckmorton; and Seeger Weiss. The firms are representing the County on a contingent basis and will not be paid in the event the lawsuit is unsuccessful.
Click here to read the County's full complaint.
Media Contact: James O’Malley, 215-348-6414, jtomalley@buckscounty.org