Massachusetts Attorney General Andrea Joy Campbell has initiated legal action against prominent insulin manufacturers and pharmacy benefit managers (PBMs) over alleged unfair pricing practices. The lawsuit, filed in Suffolk Superior Court, targets Eli Lilly, Sanofi, Novo Nordisk, Optum RX, Express Scripts, and CVS Caremark.
AG Campbell claims that these entities collaborated to manipulate the market for diabetic treatments, significantly impacting Massachusetts residents with diabetes. Over the past decade, insulin prices have reportedly surged by up to 1,000%.
"Insulin manufacturers and pharmacy benefit managers worked together to drive up prices and take advantage of vulnerable diabetes patients," stated AG Campbell. "Our lawsuit seeks to hold these companies accountable for their greed while protecting our consumers from exorbitant health care costs."
Senator Cindy Friedman expressed support for the lawsuit: "While the Legislature recently capped out-of-pocket insulin costs...so much is still unknown about drug pricing practices." She emphasized the need to end profit-driven pricing of essential medications.
Representative John Lawn also commended AG Campbell's actions: "The legislature is focused on the opaque business practices PBMs have created...I look forward to working with the AGO on this important issue."
The complaint highlights that synthetic insulin drugs now cost between $300 and $700 despite costing less than $2 to produce. In Massachusetts alone, approximately 500,000 people live with diabetes.
AG Campbell alleges that manufacturers raised insulin prices artificially and provided undisclosed payments back to PBMs in exchange for preferred formulary status. This practice allegedly led to higher list prices being favored over more affordable options.
The Attorney General's Office argues that these actions violate state consumer protection laws and constitute unjust enrichment and civil conspiracy. The office seeks restitution for affected consumers and penalties for the Commonwealth while demanding an end to such deceptive practices.
Assistant Attorney General Michael Wong leads this case with support from Division Chief Sandra Wolitzky and Deputy Division Chief Ethan Marks from the Health Care Division.