FTC Pauses Lawsuit Against CVS, Cigna, UnitedHealth's PBMs Amid Commissioner Shortage

In September, the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health Inc’s CVS Caremark, Cigna Corp’s CI Express Scripts, and UnitedHealth Group Inc’s UNH Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list price of insulin medications.

The complaint accuses the PBMs of creating a system that benefits them financially by prioritizing drug rebates, forcing patients to pay higher costs for life-saving insulin. These PBMs, referred to as the Big Three, administer around 80% of prescriptions in the U.S.

The FTC is now pausing after the agency submitted an order seeking an administrative stay in the case.

Also Read: FTC Says UnitedHealth, CVS, Cigna Make Billions Via PBMs On Specialty Drugs

The agency does not cite any sitting commissioners who can join the proceedings. The two sitting commissioners, Republicans Andrew Ferguson and Melissa Holyoak, have recused themselves.

According to the order filed this week, the stay will remain in place for at least 105 days. The courts also set an evidentiary hearing for 225 days after the stay lifts.

Reuters notes that of its five sitting commissioners, two were fired, two were removed from the case, and one resigned when Trump took office.

Several state and local governments also filed lawsuits against drug companies and pharmacy benefit managers, accusing them of inflating insulin prices.

In November 2024, the FTC faced legal challenges from three competing pharmacy-benefit managers over its attempt to restrict their ability to negotiate drug prices for health plan sponsors.

The PBMs argue that this action seeks to upend current drug rebate contracts and disrupt long-standing practices, all while expanding the FTC’s authority beyond traditional limits.

The companies also contend that the administrative proceeding violates constitutional principles by lacking independent judicial oversight and claim that the FTC’s approach could result in significant and irreparable injury.

Price Action: CI stock is down 1.13% at $328.16, UNH stock is up 0.04% at $523.40, and CVS stock is down 0.85% at $67.49 during the premarket session at the last check Thursday.

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