High insulin prices spur a federal lawsuit against three pharmacy benefit managers

The federal government is suing some pharmacy benefit managers over a system of drug rebates that regulators say has made the price of insulin soar for patients. The Federal Trade Commission says three companies that process about 80% of prescriptions in the United States have engaged in anticompetitive practices that spur price increases. Pharmacy benefit managers, or PBMs, run prescription drug coverage for insurers, large employers and other clients. They set up formularies, or lists of covered drugs, and negotiate rebates off the drug prices. PBMs say the lawsuit shows that the FTC doesn't understand how drug pricing works.