Michigan Attorney General Dana Nessel has initiated legal action against pharmacy benefit managers OptumRX and ExpressScripts, accusing them of contributing to the opioid crisis in Michigan. The lawsuit was filed at the 3rd Circuit Court in Wayne County and alleges that these companies colluded with opioid manufacturers to secure favorable formulary placements in exchange for financial incentives.
Together with CVS Caremark, OptumRX and ExpressScripts control over 80% of the state's pharmacy benefit market. In 2023, Attorney General Nessel reached a national settlement with CVS Caremark.
"Pharmacies, manufacturers, and pharmacy benefit managers have reaped huge profits during the opioid epidemic, lining their pockets at the expense of Michiganders struggling with substance use disorder," stated Nessel. "I am committed to holding companies accountable for their role in this crisis and ensuring that the well-being of Michigan residents always takes precedence over corporate profits."
The lawsuit claims public nuisance, negligence, and violations under the Drug Dealer Liability Act. It accuses the PBMs of promoting opioid use in Michigan, breaching contracts by not maintaining reasonable care standards in handling opioids, and engaging in illegal marketing practices.
PBMs serve as intermediaries between insurance providers and pharmaceutical manufacturers to lower prescription costs but have faced scrutiny due to their influence on drug formularies. Despite being largely unregulated federally, states like Michigan are taking measures to protect consumers.
Attorney General Nessel has been active since 2019 in addressing the opioid epidemic through various settlements totaling over $1.6 billion from several major pharmaceutical entities. These funds are allocated for treatment and remediation related to opioid-use disorders across state governments.
Earlier this year, Nessel launched a website focused on distributing information about opioid settlements to aid local governments and residents.
According to data from the Michigan Department of Health and Human Services (MDHHS), there was an average annual increase of 13.9% in opioid-related deaths from 2000 to 2020. In 2022 alone, Michigan recorded nearly 3,000 overdose-related fatalities.
Media contacts can request PDF copies of the lawsuit documents for further details.