Additional Coverage:
- UnitedHealth, employer of slain exec Brian Thompson, found to have overcharged some cancer patients for drugs by over 1,000% (newsbreak.com)
UnitedHealth Group Accused of Drug Price Gouging
UnitedHealth Group’s pharmacy benefit manager, OptumRx, along with Express Scripts and CVS Caremark Rx, have been accused of charging excessive markups on life-saving drugs. The Federal Trade Commission (FTC) found that the three companies pocketed $7.3 billion in excess profits over five years.
Thousands of Percent Markups
The FTC report claims that these PBMs marked up generic drugs by thousands of percent, particularly at their own pharmacies. For example, Imatinib, used for leukemia, was sold at a 1,000% markup.
Big Pharma’s Role
Critics argue that the opaque nature of the healthcare system allows for hidden markups and inefficiencies. They blame PBMs, drugmakers, and insurance companies for contributing to America’s high healthcare costs and poor patient outcomes.
UnitedHealth’s Troubled History
The FTC’s findings come amid a series of controversies for UnitedHealth Group. The company has been accused of denying insurance claims and delaying urgent procedures. The recent murder of CEO Brian Thompson sparked outrage over the industry’s failures.
Industry Response
OptumRx claims to have saved patients money and provided clinical support. CVS Caremark argues that the FTC’s analysis was misleading and that PBMs actually reduce drug costs for consumers. However, branded drugs, which carry higher risks, can cost substantially more than generics.
FTC’s Bipartisan Support
Despite criticism, the FTC report received unanimous support from its five commissioners, including Republican appointees. This suggests that the concerns about drug price gouging are widely shared.