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SALT LAKE CITY — About 8% of Utah adults have diabetes and a new lawsuit filed by the state calls the disease a "public health crisis."
The lawsuit filed on Thursday by Utah and the Utah Division of Consumer Protection claims multiple insulin companies are charging more than they should be, and taking money from Utahns.
It said the money that goes toward treating diabetes in Utah is $1.7 billion each year, one-fourth of the total money spent on health care in the state.
The Utah Attorney General's Office in the lawsuit claims there is an "insulin-pricing scheme" and calls it "unconscionable and deceptive."
The 112-page lawsuit names three manufacturers — Eli Lilly, Novo Nordisk and Sanofi, which manufacture most of the insulin and other diabetic medications available in the state, as defendants — along with CVS Caremark, Express Scripts and Optus RX, which serve as pharmacy benefit managers and administer prescription plans.
It asks the 3rd District Court to prohibit these companies from violating the Utah Consumer Sales Practices Act, and require them to pay damages to consumers and deal with civil penalties for previous law violations.
The lawsuit says insulins cost the manufacturers less than $2 per vial to produce, but the makers have increased the prices by "up to 1,000%" despite the cost of production going down over time.
Access to affordable insulin is, literally, a life-or-death issue.
– Utah Attorney General Sean Reyes
In a prepared statement about the lawsuit, Attorney General Sean Reyes said "unrestrained greed" can't impact health care, and these companies are making billions in profits through the markups.
"Access to affordable insulin is, literally, a life-or-death issue. ... This is one of the most egregious cases of avarice and inhumanity I have ever seen. It not only violates the law, but is morally repugnant too," Reyes said.
Margaret Woolley Busse, executive director of the Utah Department of Commerce, said the scheme is unlawful.
"We'll do everything in our power to hold these companies accountable for their unconscionable actions and for the damage they have caused to Utahns who rely on insulin for survival," she said.
The Utah Division of Consumer Protection is inviting diabetes patients in Utah to share their experiences online to participate in the lawsuit.
