Cigna, alongside UnitedHealth Group and CVS Health, has filed a lawsuit against the Federal Trade Commission (FTC), challenging the agency's case concerning high insulin prices. The lawsuit, lodged in the U.S. District Court for the Eastern District of Missouri, argues that the FTC's in-house administrative process violates the companies' due process rights under the Fifth Amendment.
The FTC had previously initiated an administrative court proceeding in September, accusing major Pharmacy Benefit Managers (PBMs), including Cigna's Express Scripts, of utilizing a 'perverse' rebate system to inflate insulin costs for patients while boosting their own profits. The companies contend that the FTC's process is 'fundamentally unfair' and that claims involving private rights should be litigated in federal court.
This legal challenge represents a direct confrontation with federal regulators over the PBM business model, which is central to Cigna's Evernorth Health Services segment. The outcome of this litigation could have broad implications for how PBMs operate and are regulated in the future.
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