Eleven diabetes patients are suing several drug companies for alleged collusion on insulin pricing, reports The Washington Post.
The lawsuit was filed Monday in U.S. District Court in Massachusetts against Indianapolis-based Eli Lilly, French pharmaceutical company Sanofi and Danish drugmaker Novo Nordisk. The suit claims the companies systematically increased insulin list prices for years in an alleged fraudulent-pricing scheme that left patients with "crushing out-of-pocket expenses," according to the article. The companies, the lawsuit says, increased the insulin list prices to expand their discounts without lowering the overall price tag, according to the report.
By doing so, the lawsuit alleges the companies violated the Racketeer Influenced and Corrupt Organizations Act and state consumer protection laws.
"I think that publishing a price that you know is artificially inflated and is not a real price — other than to one group of people — is a fraud," Steve Berman, a partner in the with Hagens Berman law firm who represents the plaintiffs, said, according to The Washington Post.
With a growing number of consumers on high-deductible health plans, more patients are encountering drug list prices. Because diabetes is a chronic condition that requires drug treatment for life, these patients are more vulnerable to drug list pricing due to the likelihood of encountering gaps in health insurance over the course of a lifetime.
Insulin companies recognize the increases in list prices but argue net prices have stayed the same, according to the report. Drug companies involved in the lawsuit spoke out against the allegations and vowed to defend themselves.