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The Diabetes Leadership Council (DLC) and the Diabetes Patient Advocacy Coalition (DPAC) expressour strong support for the recent announcement by the Federal Trade Commission (FTC) of their intentto file suit against Pharmacy Benefit Managers (PBMs) for inflating insulin prices. This caseunderscores the urgent need for greater transparency and accountability within the pharmaceuticalsupply chain, something our organizations have tirelessly championed. The current system fails manypatients, particularly the 133 million Americans living with chronic illnesses, including the 38 millionindividuals living with diabetes, who struggle to afford lifesaving medications.
The covert rebate practices employed by PBMs significantly contribute to higher out-of-pocket costs forpatients at the pharmacy counter. By prioritizing expensive medications that yield the highest rebatesfrom manufacturers, PBMs create a system that ultimately disadvantages patients. This opaque practiceperpetuates a cycle where patients bear the financial burden while plans and PBMs profit. The entirestructure is misaligned, leading patients to pay more for medications than they should.
Through the Patient Pocket Protector Coalition, DPAC unites a diverse group of chronic illnessstakeholders to advocate for rebate reform and promote patient-centered policies. We are activelyworking with state legislators to introduce measures aimed at alleviating the financial burdens faced bythose managing chronic illnesses. In 2024 alone, DPAC supported bills in 20 states that would share thebenefit of negotiated rebates with patients and lower out of pocket costs at the pharmacy counter.
Initiatives such as transparency reporting and regulatory oversight are essential steps in creating a moreequitable healthcare environment, which must include lowering the cost of drugs for patients. Today'snews represents a critical moment in addressing the harmful practices of PBMs that disproportionatelyaffect patients with chronic conditions.
“Especially through our work in state-level rebate reform, we know how the shell game of prescriptionpricing impacts people already burdened by a chronic condition. This announcement by the FederalTrade Commission is a step in the right direction of addressing prescription drug pricing in our brokenhealth care system,” said Hunter Limbaugh, Chair of the Board of Directors of the Diabetes PatientAdvocacy Coalition.
“The Diabetes Leadership Council has been raising awareness and taking action on the nefariouspractices of these middlemen for nearly ten years; rebates are just one way that PBMs are hurting peopleby adding barriers to lifesaving and life-sustaining drugs. We are encouraged that the FTC hasannounced their intention to shed light on an otherwise opaque industry,” said Stewart Perry, Chair ofthe Board of Directors of the Diabetes Leadership Council.
DLC and DPAC are dedicated to collaborating with patients, healthcare providers, and policymakers tocreate solutions that lower drug costs and improve access to medications. By removing the perverseincentives that are currently driving up prescription drug costs in America, we can make healthcare moreaffordable, especially for our most vulnerable citizens. We applaud the FTC's efforts to address thesecritical issues and remain committed to advocating for patients who deserve fair and affordable access totheir medications.
