The Federal Trade Commission said Wednesday that it had settled a lawsuit against Express Scripts, one of the largest pharmacy benefit managers in the U.S., over allegations that the company artificially inflated the price of insulin and impeded access to the life-saving diabetes treatment.
As part of the deal, which the agency maintained will save Americans up to $7 billion in out-of-pocket costs over 10 years, Express Scripts must make several “fundamental changes” to its dealings with employers, health plans, and pharmacies. The company, which is owned by Cigna, must also move its group purchasing organization to the U.S. from Switzerland.
The settlement comes amid increasing scrutiny of pharmacy benefit managers, which play a key role in the U.S. pharmaceutical supply chain by acting as middlemen between drugmakers and health plans by creating formularies, which are the lists of medicines that are covered by insurance.
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