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Express Scripts sues FTC, demands withdrawal of PBM report

FTC's July 2024 report makes unsubstantiated, false and biased claims about the PBM industry; fails to take into account the value that PBMs deliver to consumers and patients.

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ST. LOUIS – In a lawsuit filed in federal court in Missouri, Express Scripts by Evernorth, a subsidiary of The Cigna Group, demanded that the Federal Trade Commission (FTC) retract its July 2024 report, which is filled with false and misleading claims about the pharmacy benefit management (PBM) industry and fails to serve the interests of American consumers.

Information about Express Scripts' lawsuit to protect those it serves is available at https://www.evernorth.com/advocate.

"The FTC has taken unconstitutional actions in publishing a report that ignores the evidence provided by our company and other PBMs, demonstrates clear ideological bias and advances a false and damaging narrative – a narrative that could harm the health care system by removing essential checks and balances which would result in higher drug prices for American consumers," said Andrea Nelson, Chief Legal Officer for The Cigna Group. "We don't take this step lightly, but as advocates working to lower drug prices for millions of Americans and the employers, labor unions, and government agencies that provide their prescription drug benefits, we cannot let the FTC's unlawful actions and false information stand."

For more than two years, Express Scripts fully cooperated with the FTC study into the PBM industry, meeting the agency's extensive demands for data and information. The FTC's report disregarded the millions of documents and terabytes of data produced by Express Scripts and other PBMs. As a result, the report is riddled with false statements, misleading insinuations and violates the Commission's duty to follow due process and serve the public interest.

The Facts About How Express Scripts Lowers the Cost of Prescription Drugs

"Our 18,000 Express Scripts colleagues work every day to improve health and lower the cost of medications for the millions of Americans we serve," said Eric Palmer, President and CEO of Evernorth Health Services. "Our clinicians and clinical programs perform thousands of critical medication safety checks on each prescription, and we are constantly innovating to improve medication access and affordability. In a world where pharmaceutical manufacturers continue to raise the price of medications every year, Express Scripts' work is more important than ever, and we won't let misinformation or false accusations deter us from our mission." 

Express Scripts and other PBMs only exist because they provide real value, driving lower net drug costs for employers, labor unions and other plan sponsors and their members. Express Scripts achieved approximately $38 billion in savings for clients last year alone.

  • Drug manufacturers – not PBMs – set the prices of their drugs. According to a Reuters analysis of 47 medicines, the median annual list price for a new drug was $300,000 in 2023, up from $222,000 in 2022.
  • Express Scripts negotiates with drug manufacturers to lower the net cost of drugs for plan sponsors. Numerous academic and government studies and investigations, including several by the Commission, have demonstrated and quantified the magnitude of these savings to plan sponsors and patients. 
  • Express Scripts has pioneered programs to shield patients from high list prices; supporting access to lower-cost generics and biosimilars; and providing customers with convenient access to personalized information about the cost of their care to help them make more informed decisions.

There is no support for claims that PBMs are responsible for high drug costs.

  • There is no evidence that the alleged power of PBMs has been increasing over time.
  • Express Scripts passes through over 95% of all rebates and fees it receives to its client plan sponsors.
  • PBMs have no incentive to see list prices rise. List prices for branded drugs with rebates have grown less, not more, than list prices for branded drugs with no rebates.

For more information about Express Scripts' work to make medications more affordable and accessible, visit https://www.evernorth.com/express-scripts-facts.

An overview of Express Scripts' complaint, which argues the Commission's report violates the U.S. Constitution and federal law, and the full text are available here.

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