Hartford Business Journal

20 HARTFORDBUSINESS.COM | JANUARY 26, 2026 FOCUS | HE ALTH CARE Image created by ChatGPT CT municipalities sue insulin drugmakers, PBMs alleging price-fixing scheme — increased their profits by capturing growing shares of each prescription dollar. In some cases, PBM-affiliated entities allegedly retained nearly half of the total money spent on insulin prescriptions. The alleged conduct dates back at least to 2003 and continues today, the lawsuits claim. The defendants include CVS Health Corp., UnitedHealth Group Inc. and Cigna Group subsidiaries, along with PBM-affiliated rebate aggregators such as Zinc Health Services, Ascent Health Services and Emisar Pharma Services. The lawsuits allege violations of the Connecticut Unfair Trade Practices Act, Connecticut Antitrust Act, federal Sherman Antitrust Act and the Rack- eteer Influenced and Corrupt Organi- zations Act, along with common-law claims including fraud, civil conspiracy and unjust enrichment. Each community is seeking injunc- tive relief, restitution, disgorgement, damages and attorneys' fees. Similar lawsuits have been filed nationwide, and several Connecticut cases have already been transferred to the U.S. District Court in New Jersey, where more than 400 insulin pricing cases have been consolidated under a multidistrict litigation docket. The more recently filed Connecticut lawsuits are also expected to be transferred. In response to similar allegations in other cases, drugmakers and PBMs have denied wrongdoing and disputed claims that rebate practices illegally inflate insulin costs. The lawsuits come amid heightened scrutiny of PBMs by Congress, state regulators and the Federal Trade Commission over opaque pricing practices, rebate arrangements and their expanding vertical integration with insurers and pharmacies. By David Krechevsky davidk@hartfordbusiness.com M ore than a half-dozen Connecticut municipalities have filed federal lawsuits accusing major insulin manufacturers and pharmacy benefit managers of colluding to artificially inflate the price of insulin and other diabetes medica- tions, driving up costs for taxpayers and public employees. Bridgeport and New Haven filed the latest lawsuits Jan. 8 in U.S. District Court for the District of Connecticut, joining similar complaints brought by Glastonbury (Dec. 22), Southington (Jan. 5), and three other communities — Meriden, Torrington and Middletown — that filed last year. All seven lawsuits were filed on behalf of the communities by Madi- son-based attorney Kenneth Bartlett and Florida-based law firm Levin, Papantonio, Proctor, Buchanan, O'Brien, Barr & Mougey. The lawsuits accuse drugmakers Eli Lilly and Co., Novo Nordisk Inc. and Sanofi-Aventis U.S. LLC of conspiring with the nation's three largest phar- macy benefit managers (PBMs) — CVS Caremark, Express Scripts and OptumRx — to raise list prices for insulin and other diabetes drugs while sharing billions of dollars in rebates and fees tied to those inflated prices. The complaints claim municipalities were forced to overpay for diabetes drugs through self-insured health plans covering municipal and/or school employees, retirees and their dependents, diverting public funds from essential services. According to the lawsuits, insulin prices have risen by as much as 1,000% over the past two decades, despite declining production costs and little change in the drugs themselves. The suits allege manufacturers inflated list prices to secure preferred placement on PBM formularies, while PBMs retained significant portions of undis- closed rebates and fees. The lawsuits also contend PBMs — many of which are vertically integrated with insurers and retail pharmacies Growing CT pharmacy benefit auditing firm relocates HQ from Milford to Shelton By Michael Juliano mjuliano@hartfordbusiness.com A Connecticut consulting firm that audits pharmacy benefit managers on behalf of employers, unions and other organizations that sponsor prescription drug plans has relocated its headquarters from Milford to a significantly larger office in Shelton as it plans to expand its workforce amid rising demand. PBIRx said it has relocated its headquarters into a 10,000-square-foot office at 3 Corporate Drive, in Shelton, from a prior 2,200-square-foot Milford office. The company said it will lease its new location for 10 years. "We had people anywhere we could fit them in our previous location," spokeswoman Angela Cross said. "We had outgrown the space." Founded in 1993, PBIRx provides independent auditing and consulting services for employers, unions and other organizations that hire pharmacy benefit managers to administer prescription drug plans. PBIRx said it has recovered more than $500 million for clients and expects demand to keep rising as pharmacy costs grow — accounting for as much as 40% of total healthcare spending. PBIRx plans to increase its staff by about 50% as demand grows for independent reviews of pharmacy benefit contracts and pricing structures. The firm has grown by about 25% annually over the past three years, it said. "The complexity of PBM contracts and pricing structures has also made auditing a higher priority for benefits teams," said Patricia Sirowich, who founded PBIRx in 1993. The company began moving 20 employees into the new headquarters in early January, Cross said. Another 15 employees work remotely from locations around the country. PBIRx has moved its headquarters into this office building at 3 Corporate Drive, in Shelton. Contributed Photo

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