Frequently Asked Questions

What is insulin used for?

Insulin is a hormone that allows your body to turn food into energy and regulates blood sugars. In a non-diabetic person, the pancreas naturally produces the correct amount of insulin, however, in a person with Type 1 or Type 2 diabetes, the pancreas does not release the amount of insulin needed to control glucose levels in the blood. This can lead to serious and life-threatening complications. Diabetics take manufactured insulin to manage their blood sugars.

How much does insulin cost in the U.S.?

Since 2003, the price of certain insulin products has increased 1000% in the U.S. In 2016, the average diabetic spent approximately $5,705 per year on insulin. However, a 2018 study found that a reasonable price range for an annual supply of insulin based on production costs and allowing a suitable profit margin for the manufacturer would be $48 to $71.

Why are insulin prices so high?

The price of insulin has increased so severely and so quickly because of the pricing strategies of insulin manufacturers and PBMs. PBMs negotiate the price of insulin and associated rebates with the manufacturer. Higher rebates mean bigger profits for the PBM, but higher rebates also push up the price of the insulin as manufacturers increase prices to cover the rebates without affecting their profit. Therefore, higher insulin prices mean more money for everyone in the insulin market, except the end consumer.

How many people use insulin?

Over 7 million people in the U.S. need insulin daily. Insulin is an essential and life-saving drug for diabetics. In the U.S., more than 10% of the population (or 34.2 million people) have diabetes and more than 88 million Americans have prediabetes.

Who are the main manufacturers of insulin?

Three pharmaceutical manufacturers dominate the global insulin market – Novo Nordisk, Sanofi, and Eli Lilly. According to a 2019 study, these three companies control 99% of the global insulin market by value and 96% of the market by volume.

What is a PBM?

A PBM or Pharmacy Benefit Manager is the middleman between the health insurance company and the drug company. The PBM negotiates the list price of insulin with the manufacturers and determines the drug’s ranking on a health insurance plan’s drug formulary (or preferred drug list.) A preferential spot on the drug formulary means that more patients are likely to use that company’s insulin because more of the cost is covered by their health insurance.

As part of the pricing negotiation, the PBM also negotiates rebates with the manufacturer. These rebates are paid from the drug manufacturer to the PBM, and increase the PBM’s profits. To allow a bigger rebate payment, the overall list must also be bigger, which leads to higher prices for the end consumer.

Three PBMs involved in the insulin overpricing lawsuits – Express Scripts, CVS Caremark, and OptumRx – control 89% of the pharmacy market in the U.S.

What are the legal issues in the insulin overpricing litigation?

The insulin overpricing litigation alleges multiple forms of illegal behavior by the insulin manufacturers and PBMs:

RICO Violations: RICO (Racketeer Influenced And Corrupt Organizations Act) is a federal law that prohibits racketeering activity. The insulin overpricing lawsuits claim that the insulin manufacturers and PBMs violated RICO by colluding to artificially increase the price of insulin to benefit their own bottom line.

Unfair And/Or Deceptive Trade Practices: The insulin litigation alleges that the insulin manufacturers and PBMs breached state consumer protection laws outlawing unfair and deceptive trade practices when they collaborated to artificially and deceptively increase the price of insulin above fair market value. Plaintiffs claim that the PBMs and pharmaceutical companies concealed agreements that affected insulin prices and increased their profits, and misled consumers about the fair market price of insulin.

Unjust Enrichment: Consumers in the insulin lawsuit are seeking reimbursement of the money that was unjustly obtained by the PBMs and insulin manufacturers as a result of insulin overpricing.

What remedies are available for an insulin overpricing claim?

The insulin overpricing lawsuits are asking for multiple remedies aimed at compensating the consumers, stopping the unlawful overpricing, and punishing the wrongdoers:

• Compensation of the money that was overpaid for insulin and other expenses that were incurred because of the overpricing scheme of the manufacturing companies and PBMs.
• Injunction to stop further overpricing of insulin by drug companies and PBMs.
• Disgorgement (giving up) of profits that were unjustly obtained by PBMs and insulin manufacturers as a result of insulin overpricing.
• Punitive damages, ordered to punish the pharmaceutical companies and PBMs for their illegal conduct.

Is there a deadline for filing an insulin litigation claim?

In general, a lawsuit must be filed within a certain period, known as the statute of limitations, after which the ability to bring a claim expires. The statute of limitations for a claim is different depending on the type of claim, and which state the lawsuit is filed in. In order to ensure that you do not lose your ability to bring a legal claim, you should speak to a lawyer handling insulin lawsuits, such as the insulin litigation lawyers at Morris James, to find out more about your legal rights.

Do I need a lawyer to bring an insulin overpricing claim?

You should have a lawyer if you are considering a claim in the insulin overpricing litigation. This is complex and high value litigation involving very powerful companies with a lot of resources. The insulin manufacturers and PBMs have teams of lawyers working on this litigation. It has the attention of the highest levels of the federal government. In order to have your voice heard and get the relief that you deserve, you should be represented by a lawyer advocating for your interest and fighting for your legal rights.

Why should I hire Morris James for an insulin litigation claim?

The litigation attorneys at Morris James are experienced and aggressive advocates for our clients. We have a robust and connected team of lawyers that understand the legal and practical workings of complex lawsuits, and put those skills to work every day to get results for our clients.

In addition, Morris James is joining forces in the insulin overpricing litigation with a consortium of nationally recognized law firms known for their abilities in complex litigation. The consortium firms have taken on, and defeated, Big Tobacco, BP, DuPont, Bayer, Johnson & Johnson, and opioid manufacturers, distributors, and pharmacy chains. Your Morris James lawyer can tell you more about this collaborative effort to end overpricing in the insulin market and get compensation for insulin consumers.

At Morris James, our attorneys have been standing up for victims since we opened our doors in 1931. If you have been a victim of insulin overpricing or you have questions about the insulin overpricing lawsuits, contact one of our experienced litigation attorneys online today or call us 302.655.2599 to find out about your right to relief. Keith Donovan and Matt Fogg would be happy to answer your questions.