Texas: Paxton goes after insulin manufacturers and pharmacy benefit managers – IOTW Report

Texas: Paxton goes after insulin manufacturers and pharmacy benefit managers

BLP: Texas Attorney General Ken Paxton recently filed a lawsuit against leading insulin manufacturers and pharmacy benefit managers concerning an alleged conspiracy to raise insulin prices.

Pharmacy benefit managers are third-party companies that play the role as mediators between drug manufacturers and pharmacies.

Per the attorney general, insulin manufacturers allegedly hiked insulin prices and subsequently paid undisclosed parts back to PBMs to be featured in the PBM standard offerings. PBMs then bestowed preferred status to the manufacturers who make drugs with the highest listing prices, thereby spiking insulin prices significantly.

Paxton proclaimed that insulin manufacturers hiked the prices of their insulin drugs up to 1,000% by implementing a pricing scheme that is in violation of the Texas Deceptive Trade Practices Act. more

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