Michigan AG Nessel Sues Pharmacy Benefit Managers for Anticompetitive Practices

Michigan Attorney General Dana Nessel has filed a lawsuit against pharmacy benefit managers Express Scripts and Prime Therapeutics, alleging anticompetitive practices that have harmed independent pharmacies and created 'pharmacy deserts' across the state. The suit claims that a 2019 agreement between the two companies led to suppressed reimbursement rates for independent pharmacies, forcing many to close and making it difficult for residents in affected areas to access essential medications. Nessel asserts that these actions violate federal and state antitrust laws and have resulted in longer travel times for medication, increased costs for consumers, and a loss of small businesses. The lawsuit seeks to end the agreement and restore more equitable access to prescription drugs. PBMs argue they save costs for patients, but critics, including pharmacists, say their practices lack transparency and can lead to higher prices and reduced access. The four largest PBMs, including the defendants, control a significant share of the national market, raising broader concerns about market consolidation and its impact on healthcare access.