KANSAS CITY, Mo. — Jackson County is suing a number of insulin manufacturers and pharmacy benefit managers due to claims of an insulin pricing scheme that unfairly prices the diabetes treatment.
The county claims that the insulin manufacturers and pharmacy benefit managers are involved in "unlawful rebate schemes," that increase the cost of insulin. The county seeks damages and injunctive relief from the defendants for alleged unjust enrichment and civil conspiracy due to an insulin pricing scheme.
“The cost of insulin, a life-saving drug that millions rely on, has skyrocketed because of the greed between insulin manufacturers and pharmacy benefit managers," Jackson County Executive Frank White, Jr. said in a written statement. "Our legal action is intended to tackle this problem and expose the scheme that has harmed thousands of Missourians.”
The county is suing insulin manufacturers Eli Lilly, Novo Nordisk and Sanofi, which it says produce the majority of insulin and diabetic medication available to consumers in Missouri.
Pharmacy benefit managers (PBM) CVS Caremark, Express Scripts and OptumRx, which Jackson County says control 80% of the PBM market, are also defendants in the lawsuit.
Jackson County claims both manufacturers and PBMs have raised the price of insulin over the past 15 years, despite decreasing production costs. The county says insulin costs less than $2 per drug to create, and currently has carry list prices of $300-$700, compared to a list price of $20 in the late 1990s.
14.6% of Missouri adults live with diabetes, according to the Missouri Department of Health and Senior Services' 2023 diabetes report. Jackson County was listed among the Missouri counties with the highest prevalence of diabetes in the state.
There were 1,844 deaths due to diabetes in 2020 in Missouri, according to DHSS. It is the seventh leading cause of death in the state.
“Diabetes is a major health concern in Jackson County, which is why in our expanded Our Healthy KC Eastside programming we will be prioritizing diabetes prevention and free supportive resources throughout the community,” White Jr. said.
Jackson County requests a jury trial.
