Major health care companies are urging Federal Trade Commission (FTC) Chair Lina Khan and two other commissioners to recuse themselves from a case involving the pricing of insulin. CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s OptumRx have filed motions arguing that Khan, Alvaro Bedoya, and Rebecca Slaughter have shown bias on the issue through their statements.
For instance, ExpressScripts’ motion highlighted remarks made by Khan in which she referred to pharmacy benefit managers (PBMs) demanding rebates as potential kickbacks that raise costs and limit access to affordable medicines. It also pointed out an article written by Khan during law school claiming that PBMs keep drug prices high.
Amazon and Meta have also called for Khan’s recusal. Amazon cited an article written by Khan criticizing the company’s practices as evidence of her bias.
The FTC declined to comment on the matter when contacted.
Caremark and Zinc Health Services argued in their motion that the three commissioners’ prior statements demonstrate their predetermined positions on the issues raised in this case. They stated that these statements go beyond mere appearance of bias or prejudgment but serve as proof-positive of how Caremark’s and Zinc’s fates have been determined in the minds of those who seek to adjudicate this matter.
Caremark further asserted that if the three commissioners do not disqualify themselves, then the full commission should step in to disqualify them.
When announcing its complaint against PBMs for artificially inflating insulin drug prices, the FTC noted a vote count of “3–0–2,” with two commissioners being recused. OptumRx emphasized this fact in its motion, stating that it raises questions about the impartiality of a one-sided partisan commission deciding this case.
The commission currently consists of two Republicans—Ferguson and Holyoak—and three Democrats appointed by President Joe Biden. However, Slaughter initially took office under President Donald Trump before being nominated by Biden for a second term.
In July, an interim report on PBMs was issued by the commission with critical concurrence from Ferguson and dissent from Holyoak. The three Democrat commissioners defended the report separately.
ExpressScripts sued over this report in September, alleging prejudice and politics influenced its conclusions about PBMs inflating drug costs and harming independent pharmacies.
The FTC accused PBMs of creating a rebate system prioritizing high rebates from drug manufacturers when filing its complaint against them. The case has been referred to an administrative law judge.
Khan’s presence within Biden administration has attracted political tension with some Democrat donors supporting her removal while others back her.