April 2 (Reuters) - The Federal Trade Commission put on
hold a lawsuit against pharmacy-benefit manager (PBM) units of
UnitedHealth ( UNH ), Cigna ( CI ) and CVS Health ( CVS ) over
insulin prices after the Trump administration fired two of the
agency's commissioners.
The two Democratic commissioners, Alvaro Bedoya and Rebecca
Kelly Slaughter, who had voted in favor of the lawsuit against
the PBMs, were fired last month.
In court filings this week, the FTC said the case will be
put on hold for 105 days, as there were no sitting commissioners
available to participate.
Of its five sitting commissioners, two were fired, two
removed from the case, and one resigned when Trump took office.
The FTC lawsuit accuses the PBMs of unfairly limiting access
to insulin drugs with lower list prices and steering diabetes
patients towards higher priced insulin in order to reap millions
of dollars in rebates from pharmaceutical companies.
"CVS Health ( CVS ) is confident the facts are on our side -
drugmakers alone set the price of insulin - and we will continue
to defend the case vigorously to protect our ability to make
insulin affordable for American businesses and their members,"
David Whitrap, vice president, External Affairs at CVS, told
Reuters in a statement.
UnitedHealth ( UNH ) and Cigna ( CI ) did not immediately respond to
Reuters' requests for comment.
The three companies own the country's largest PBMs -
Caremark, Optum and Express Scripts.
PBMs act as middlemen between drug companies and consumers.
They negotiate volume discounts and fees with drug manufacturers
on behalf of employers and health plans, create lists of
medications that are covered by insurance, and reimburse
pharmacies for prescriptions.
Bedoya and Slaughter sued U.S. President Donald Trump last
month saying their removals violated federal law and a
90-year-old U.S. Supreme Court precedent upholding agency
independence.
(Reporting by Puyaan Singh in Bengaluru; Editing by Shinjini
Ganguli)