Oklahoma AG Drummond considering lawsuit over hiked insulin costs
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OKLAHOMA (KFOR) – KFOR is hearing from the Oklahoma Attorney General one day after he announced possible legal action over inflated prices of insulin. He believes it has been potentially affecting hundreds of thousands of Oklahomans.
Oklahoma Attorney General Gentner Drummond says his office has completed an internal investigation and they feel comfortable moving forward with a lawsuit. Now, they are looking for an outside law firm to take the next step.
“There is no reason to wait for a multidistrict litigation or a multistate action. We’ve identified the need. We’ve identified the exploitation of our consumers. And this attorney general is going to find a remedy,” said Gentner Drummond, Oklahoma Attorney General.
Oklahoma Attorney General Gentner Drummond says nearly 13% of Oklahoma’s population is diabetic. That’s nearly 400,000 Oklahomans who use insulin on a regular basis.
“Insulin helps take sugar from the bloodstream and put it into cells and so in type one diabetes, people are insulin deficient, meaning that their pancreas doesn’t make insulin. And in type two diabetics, they are insulin resistant, meaning that the body doesn’t have the same response that it would lower doses of insulin in type two diabetics,” said Melina Cail, M.D., Primary Health Partners.
Drummond says it’s a statewide issue and he’s seeking to hold those accountable for hiking prices for a diabetes medication a lot of Oklahoman’s rely on to survive.
“In this instance, we have just a few manufacturers of insulin effectively in oligopolies. And so, these oligopolies can set an arbitrary higher price than the market would bear if there were true free market influences on this issue. So, in the absence of free market and in the absence of self-regulation by these that are prioritizing their profit over the health of Oklahomans and their other consumers, it requires state action,” said Drummond.
Plan to cap insulin prices gains traction in U.S. Senate
Right now, the state law caps how much insurance companies can charge for insulin. It is $30 for a 30-day supply and $90 for a 90-day supply.
“The law permits a $30 to $90 charge based on supply of insulin. So, it gives some market acknowledgment to supply and demand. But that’s only if you’re in these protected buckets of Medicaid, Medicare, state employee and on the exchange, if you’re just a normal human being breathing air in Oklahoma, then you can still be exploited… If you have Blue Cross Blue Shield or any of the other insurance providers, you know, they are simply passed passing through. The cost of insulin is charged by either the pharmaceutical company or the pharmacy benefit manager,” said Drummond.
Drummond said he hopes to make a change before it could potentially end up being too late.
“If a type one diabetic does not get insulin, it is actually life threatening and can kill them,” said Dr. Cail.
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Drummond’s office is now seeking bids from outside firms to investigate those he says are responsible for increased insulin prices, and potentially file a lawsuit.
The Oklahoma Insurance Department sent KFOR the following statement:
The Oklahoma Insurance Department routinely monitors insurance company and large employer insurance coverage for compliance to the state law that requires a $30/30 day prescription copay or a $90/90day prescription copay for insulin. The Department has observed that health plans are in compliance with these copay requirements. If a consumer identifies an issue related to the copay requirement they can call the OID Consumer Assistance Division at 800-522-0071 or 405-521-2991.
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