California Sues Drugmakers for Insulin Overcharging

US state California is taking legal action against leading insulin producers and pharmacy benefits managers (PBM) in the US, accusing them of abusing their market dominance to overcharge patients for the life-saving medication, announced Rob Bonta, Attorney General of California. 

Bonta argues that these companies increase the price of insulin through unethical, unfair and dishonest business practices in violation of California’s Unfair Competition Law. “Insulin is a necessary drug that millions of Americans rely upon for their health, not a luxury good. With today's lawsuit, we're fighting back against drug companies and PBMs that unacceptably and artificially inflate the cost of life-saving medication at the expense of vulnerable patients,” he explained.

The lawsuit names PBMs CVS Caremark, Express Scripts and OptumRx, as well as manufacturers Eli Lilly, Novo Nordisk and Sanofi. These manufacturers represent over 90% of the global insulin market, which limits competition in the sector.

The price increases of insulin have a disproportionately negative impact on people from low-income households and communities of color, says Bonta. About 10% of the US population, an estimated 34.2 million people, live with diabetes, according to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK).

“No one should be forced to ration or go without basic medication that could mean the difference between life or death. California will continue to be a leader in the fight to ensure everyone has equal access to affordable healthcare and prescription medications they need to stay healthy,” says Bonta.

Over 12.4 million people in Mexico suffer from diabetes, according to the National Health and Nutrition Survey (ENSANUT). The percentage of Mexicans suffering from this disease increased from 9.2% to 10.2% in the last ten years, says Alejandor Vargas Gutiérrez, Chief of Internal Medicine at the National Homeopathic Hospital, Ministry of Health.

Experts agree that prevention is the best way to fight chronic diseases, such as diabetes. Technology can also give people the right tools to manage this disease. “Chronic patients have special needs, as the care they require often involves multiple centers, multiple specialists, many different drugs provided by multiple providers,” writes Maria Salido, CEO, SocialDiabetes, in MBN. “Considering that chronic patients represent 80% of primary care consultations, 60% of hospital admissions and 70% of healthcare expenditure, it is obvious where we need to focus.”