Bit of an Introduction ;

The above chart shows the extent of the consolidation of PBMs which also portays the growing lack of competition. The chart comes from the Oklahoma petition filed in the Cleveland County District Court.

Cleveland County is the fifth fastest-growing county, encompassing vibrant communities such as the southern part of Oklahoma City, Moore, Norman, Noble, Lexington, Slaughterville, Little Axe, as well as extensive rural, unincorporated areas. It is interesting to see a state file suit against some rather large companies as identified in the above chart.

With regard to Humalog pricing? Pricing has been a topic on Angry Bear multiple times. Prices having risen dramatically for this rather old drug as well as for the EpiPens which can administer Humalog. “Can You Patent the Sun?” Angry Bear, Big Pharma Influence in State, Federal Government, and Everyday Life, Angry Bear, Shuttering a Union Manufacturing Plant (Pens), Angry Bear, etc. It is out there on Angry Bear if you wish more detail

Oklahoma Attorney General Drummond sues pharmaceutical manufacturers, PBMs for insulin pricing scheme

Attorney General Gentner Drummond filed a lawsuit against major diabetic drug manufacturers and pharmacy benefit managers (PBMs) for an unfair and deceptive pricing scheme that has cost Americans billions of dollars. 

The lawsuit alleges violations of the Oklahoma Consumer Protection Act (OCPA), Drummond said manufacturers have significantly raised the prices of their diabetes drugs in lockstep during the last 15 years despite the fact that the costs of producing the critical drugs have diminished.

(click on the above graph to enlarge)

He said manufacturers and PBMs coordinated closely to control drug prices and drug purchasing behavior.

Drummond . . .

“It is despicable that these companies preyed upon Oklahomans who were desperate for life-saving medication to bolster their profits. The outrageous profits these companies obtained through deceptive business practices need to be paid back through restitution or rescission.”

Filed today in Cleveland County District Court, the lawsuit names as defendants Eli Lilly and Company, Novo Nordisk Inc, Sanofi-Aventis U.S. LLC, Evernorth Health Inc. (formerly Express Scripts Holding Co.), Express Scripts Inc., Express Scripts Administrators LLC, Esi Mail Pharmacy Service Inc., Express Scripts Pharmacy Inc., Medco Health Solutions Inc., CVS Health Corp., CVS Pharmacy Inc., Caremark Rx LLC, Caremarkpcs Health LLC, Caremark LLC, Unitedhealth Group Inc, Optumrx Inc. and Optuminsight Inc.

The cost for the manufacturers (named in the lawsuit) to produce insulin today is less than $2 per vial, according to the filing. The drugs, which sold for $20 in the late 1990s, now range between $300 and $700. In the last decade, the manufacturer defendants have hiked the price of their insulin up to 1,000 percent.

(click on the above Chart to enlarge)

“The current unlawfully inflated price stands in stark contrast to insulin’s origins: the discoverers sold the original patent for $1 to ensure that the medication would remain affordable,” the lawsuit states. “Today, insulin has become the poster child for skyrocketing and inflated drug prices.”

Impact of Diabetes

Oklahoma has among the highest rates of diabetes in the nation, with 11 percent of the population – about 450,000 people – living with the disease. More than 1.6 million additional Oklahomans have prediabetes. 

“As a direct result of the Insulin Pricing Scheme, one in four Oklahoma diabetics can no longer afford their diabetes medication and are forced to ration and skip doses,” according to the lawsuit. “This forced lack of adherence leads to substantial additional healthcare costs.”

Insulin, a hormone that helps convert food into energy, is critical to controlling blood sugar levels in diabetes patients. Diabetes is the leading cause of blindness, kidney failure and lower limb amputations. It is the seventh leading cause of death in Oklahoma despite the availability of effective treatments. The total estimated cost of diagnosed diabetes in Oklahoma is $6 billion annually.