Indiana AG Sues Drugmakers, PBMs Over High Insulin Prices

The suit says diabetes care costs the Hoosier State $5 billion annually.

Indiana Attorney General Todd Rokita has filed suit against several of the nation's largest drugmakers and pharmacy benefit managers for allegedly conspiring to inflate insulin prices.

"Diabetes is a public health crisis for Hoosiers," Rokita says, noting that 640,435 Indiana residents have diabetes -- more than 12% of the state's population -- and more than 1.7 million are pre-diabetic. Diabetes is the seventh-leading cause of death in Indiana and the leading cause of blindness, kidney failure, and lower limb amputations. 

The complaint claims that direct medical expenses associated with diabetes in Indiana are around $5 billion annually and that, if diabetics adhered to their medication protocols, more than $8.3 billion in direct medical costs would be saved each year.

"This is a serious condition that requires insulin, putting patients in the impossible position of choosing between health and financial security," Rokita says.

Named in the lawsuit are drugmakers Sanofi-Aventis and Novo Nordisk and PBMs CaremarkPCS Health, Express Scripts, CVS Health Corp., and Optum RX. The suit, filed in Lake County Superior Court, alleges that the companies conspired to raise prices on insulin medications by more than 1000% in the last decade despite manufacturing costs decreasing.

Several of the companies named in Indiana complaint face similiar allegations in a lawsuit filed last year by California Attorney General Rob Bonta.

The suits are proceeding despite numerous reports suggesting that insulin prices peaked in early 2023 and have since declined significantly.

"Too many Hoosiers have been forced to ration because drug manufacturers and PBMs have prioritized profits over patients," Rokita says. "Hundreds of thousands of Indiana residents rely on these medications to stay alive and these prices discourage people to take care of their health. Our office hopes this case will also set a strong precedent for other pharmaceutical companies who want to take advantage of everyday Hoosiers."

This is not Rokita's first clash with Big Pharma. He won a $66.5 million settlement against Centene for their failure to disclose true costs, took part in a $573 million multi-state settlement against McKinsey & Company for its role in "turbocharging" the opioid epidemic with Purdue Pharma, and secured nearly $7 million in an Indiana Medicaid fraud settlement against Mallinckrodt.