FTC Pushes to Dismiss Lawsuit Challenging Insulin Price Case Proceedings

The Federal Trade Commission (FTC) has taken action to dismiss a lawsuit filed by major U.S. pharmacy benefit managers (PBMs) that challenges the agency’s authority to pursue its case in an administrative court. The lawsuit, which targets CVS Health Corp., Cigna Group, and UnitedHealth Group Inc., claims that the FTC’s in-house proceedings violate constitutional protections.

According to a motion filed by the FTC late Wednesday, the PBMs’ lawsuit is not “legally viable.” The filing further argues that their request for a preliminary injunction to halt the administrative case lacks sufficient grounds, as stated in the motion.

The legal dispute arose in November, when subsidiaries of the three companies initiated litigation against the FTC. They alleged that the agency’s use of its administrative court deprived them of due process rights, which they claim they would be entitled to in a federal trial court. The case centers on the FTC’s investigation into rising insulin prices, which have drawn significant scrutiny in recent years.

Related: PBMs Push Back Against FTC, Filing Lawsuit Over Regulatory Actions

Per the FTC’s statement, the lawsuit seeking to invalidate its administrative proceedings does not meet the legal threshold for the type of relief requested. The commission maintains that its in-house adjudication is both lawful and appropriate for handling the matter.

This case represents the latest clash between the FTC and PBMs, which play a significant role in negotiating drug prices. The agency’s broader efforts to address insulin pricing have sparked widespread debate, highlighting the complexities of the pharmaceutical supply chain and the role of intermediaries like PBMs in determining costs to consumers.

Source: Bloomberg