PHOENIX — Arizona Attorney General Kris Mayes announced Monday her office is suing pharmaceutical manufacturers for allegedly scheming to inflate the price of insulin.
The lawsuit filed in Maricopa County is seeking to obtain restitution for Arizonans who may have overpaid for insulin as the cost for the diabetes medication skyrocketed over the last 20 years.
The average cost for a vial of insulin in the 1990s was $20 – a price that has since risen to $300, according to the lawsuit.
"Today’s exorbitant prices are contrary to the intent of insulin’s inventors, who sold their original patent rights to the University of Toronto for $1 each," the lawsuit states.
The lawsuit is targeting several pharmacy benefit managers and manufacturers who are accused of scheming to artificially inflate the cost of insulin.
The alleged scheme involves a complex financial structure between the PBMs and manufacturers that includes "quid pro quo" payments to ensure favorable placement on the list of drugs covered by health insurance plans, according to the lawsuit.
“While the drug companies and PBMs were engaged in a secretive system of baseless price increases and kickbacks, Arizona diabetes patients were facing life-or-death struggles to pay for their medication,” Mayes said in a statement.
The attorney general's office is seeking to obtain an injunction against the defendants to permanently prohibit them from engaging in similar pricing schemes.
A copy of the lawsuit can be found here.
UP TO SPEED
Watch 12News+ for free
You can now watch 12News content anytime, anywhere thanks to the 12News+ app!
The free 12News+ app from 12News lets users stream live events — including daily newscasts like "Today in AZ" and "12 News" and our daily lifestyle program, "Arizona Midday"—on Roku and Amazon Fire TV.
12News+ showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.
Users can also watch on-demand videos of top stories, local politics, I-Team investigations, Arizona-specific features and vintage videos from the 12News archives.
Roku: Add the channel from the Roku store or by searching for "12 News KPNX."
Amazon Fire TV: Search for "12 News KPNX" to find the free 12News+ app to add to your account, or have the 12News+ app delivered directly to your Amazon Fire TV through Amazon.com or the Amazon app.