CVS and UnitedHealth Call for FTC Chair and Commissioners to Recuse Themselves from Drug Pricing Lawsuit
CVS Health and UnitedHealth Group have filed motions urging Federal Trade Commission (FTC) Chair Lina Khan and two other commissioners to recuse themselves from a lawsuit that accuses the companies of inflating insulin prices through their pharmacy benefit managers (PBMs).
The companies argue that Khan, along with Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter, have shown bias against PBMs, which are intermediaries in the drug supply chain.
In separate filings submitted Tuesday night, CVS and UnitedHealth claimed the commissioners had made public statements indicating “serious bias” against PBMs such as CVS’s Caremark and UnitedHealth’s OptumRx. The lawsuit, which the FTC filed in September, accuses the three largest PBMs—Caremark, OptumRx, and Cigna’s Express Scripts—of prioritizing high-rebate insulins, which allegedly leads to inflated prices for consumers.
The companies argue that statements made by the commissioners, particularly those labeling PBMs as “price gougers,” suggest the commissioners have already prejudged the case, which they claim violates due process. CVS highlighted a statement from Chair Khan in 2022, where she criticized PBMs for controlling access to drugs and influencing prices.
“If the opposite of ‘complete fairness’ is ‘blatant bias,’ the Three Commissioners would easily satisfy even that standard,” CVS wrote in its motion.
UnitedHealth echoed similar concerns, stating that a judge making such remarks would be required to step down due to bias.
The FTC has declined to comment on the motions. The case is part of a broader effort by the agency to investigate the role of PBMs in the rising costs of prescription drugs, particularly insulin. PBMs negotiate drug prices on behalf of insurers, but the FTC alleges that these intermediaries are contributing to higher costs for consumers.
This is not the first time Chair Khan has faced calls for recusal. Companies like Amazon and Meta have also unsuccessfully sought her disqualification in past antitrust cases, citing similar concerns over impartiality.
