NEW YORK, Oct 9 (Reuters) - CVS Health ( CVS ),
UnitedHealth Group ( UNH ) and Cigna ( CI ) have asked U.S.
Federal Trade Commission chair Lina Khan and commissioners
Rebecca Kelly Slaughter and Alvaro Bedoya to disqualify
themselves from an FTC lawsuit that has accused the companies of
unlawfully inflating insulin prices.
The three companies own the country's largest pharmacy
benefit managers - Caremark, Optum and Express Scripts. They
filed their motions with the FTC's in-house court and shared it
with Reuters.
The companies said Khan, along with Slaughter and Bedoya,
displayed bias against pharmacy benefit managers and prejudged
their pricing models.
CVS pointed to the commissioners' claims that volume-based
discounts, or rebates, lead to higher prices for patients, and
to Khan's appearance at a National Community Pharmacist
Association event in 2022.
The group, made up of independent pharmacists, has
criticized pharmacy benefit managers.
"Event participants wore anti-PBM paraphernalia, including
pins that vilified PBMs as "bloodsuckers" and shirts depicting
PBMs as vampires," the document read.
UnitedHealth ( UNH ) said the commissioners' appearances at
anti-pharmacy benefit manager events showed their prejudice.
Cigna's ( CI ) motion pointed to Khan's public statements and said
they show "she has already made up her mind regarding the key
questions at issue in this matter..".
Any process that will involve Khan, will lack the "very
appearance of complete fairness" that due process requires, the
document read.
Express Scripts supported the CVS complaint.
The FTC suit accuses CVS Health's ( CVS ) Caremark, UnitedHealth's ( UNH )
Optum, and Cigna's ( CI ) Express Scripts of unfairly limiting access
to insulin drugs with lower list prices and steering patients
toward more expensive drugs to increase the spread of profit
from negotiated discounts.
An FTC spokesperson declined to comment.
CVS's response also pointed to statements published by the
commissioners in 2022, stating PBMs exclude cheaper generics
from plans and 2024 congressional testimony describing PBMs as
"middlemen" between drugmakers and patients seeking access to
medications.
In recent years, Amazon ( AMZN ) and Meta's
Facebook tried and failed to have Khan removed from their
antitrust cases.
(Reporting by Amina Niasse in New York; Additional reporting by
Jody Godoy in New York and Bhanvi Satija in Bengaluru; Editing
by Caroline Humer, Muralikumar Anantharaman and Arun Koyyur)