CVS and UnitedHealth Group request recusal of FTC Chair Lina Khan and commissioners from insulin pricing lawsuit

The FTC has accused CVS’s Caremark, UnitedHealth’s Optum Rx, and Cigna’s Express Scripts of inflating insulin prices and shifting costs onto patients. This lawsuit is significant as these three PBMs control nearly 80% of U.S. prescriptions, and the FTC claims they have established a problematic drug rebate system. In their motions, CVS and UnitedHealth assert that the commissioners have made prejudicial statements about PBMs, citing past comments that suggest a lack of impartiality, including descriptions of PBM practices as “disturbing” and “rotten.” The companies argue that these statements indicate that the commissioners cannot make unbiased decisions regarding the case.

Background on the Lawsuit

The FTC’s lawsuit targets the practices of the largest PBMs, alleging that they manipulate drug pricing to the detriment of patients. The agency’s position is that the current rebate system creates a financial burden on those who rely on insulin, a critical medication for many individuals with diabetes.

Allegations of Bias

CVS and UnitedHealth’s claims of bias are rooted in public statements made by the commissioners, which they interpret as evidence of a predetermined stance against PBMs. For instance, Commissioner Alvaro Bedoya has previously expressed concern over the negative impact of pharmaceutical practices on patients, while Lina Khan has been vocally critical of PBMs throughout her career.

Implications of the Request

The call for recusal raises questions about the integrity of the regulatory process and the potential influence of past statements on current cases. If the FTC decides to grant the request, it could alter the composition of the commission’s decision-making body and potentially impact the outcome of the lawsuit. The FTC has not publicly commented on the recusal request from CVS and UnitedHealth.