Despite Lawsuits Over Drug Prices, Insurance Giant Touts Revenue Growth, Claims To Have Lowered Drug Costs

As congressional lawmakers feuded over the fate of the nation’s health care system, insurance giant UnitedHealth Group reported stellar second-quarter earnings, which included more than $15.8 billion in revenue for a business segment at the roots of multiple class-action lawsuits against the company — and one that many blame for skyrocketing drug prices in the U.S.

The company faces three class-action lawsuits, one of which is a combination of two earlier class-actions, alleging that it violated the Employee Retirement Income Security Act, or ERISA, which mandates that the insurer and its pharmacy benefit managers act as fiduciaries — that is, act in the interests of their customers. The accusations outline a system of drug price-gouging, in which the pharmacy benefit manager — in UnitedHealth’s cases, OptumRx — allegedly forced pharmacies to charge fraudulent premiums for prescription medications and pocketed the difference.

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International Business Times

By @LydsONeal On