Ohio sues prescription drug middlemen over business practices
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Calling them "modern gangsters," Ohio Attorney General Dave Yost on Monday accused pharmacy benefit managers of illegally driving up drug prices for patients who rely on insulin and other key medications.
“Medications shouldn’t cost an arm and a leg, metaphorically or literally,” Yost said in a written statement. “Insulin is just a symptom of the problem; PBMs are the disease.”
InvestigationThe Rising Costs of Prescription Drugs
Yost filed a lawsuit in Delaware County Common Pleas Court against Express Scripts, Prime Therapeutics, Ascent, Humana Pharmacy Solutions and two parent companies.
He alleges the companies collude to control drug prices and have failed to live up to promises to negotiate lower drug prices from manufacturers and deliver those savings to patients. Instead, Express Scripts created a complex 'pay to play' rebate scheme that pushes manufacturers to boost drug prices in order to get their medications on preferred lists.
Yost noted that 1.1 million Ohioans are diabetics, hundreds of thousands of whom rely on daily insulin injections. Express Scripts ran a scheme that fueled insulin prices rising from about $20 per decades ago to $300 to $700 per unit now, Yost said.
A message was left with Express Scripts seeking comment.
What is a pharmacy benefit manager? What does it do?
A pharmacy benefit manager plays an important role in how much you are paying for prescription drugs. The company acts as a middleman negotiating for lower prices and discounts with pharmacies and drug manufacturers on behalf of your health plan. It decides which drugs are covered by health plans. Profit is generated by rebates and fees charged to pharmacies, manufacturers and others.
This article originally appeared on The Columbus Dispatch: Ohio Attorney General Dave Yost sues pharmacy benefit managers
