AG James Uthmeier announces lawsuit against Prime Therapeutics and Express Scripts over "price fixing scheme"

TALLAHASSEE, Fla. (WINK) — Attorney General James Uthmeier filed a lawsuit against two major pharmacy benefit managers, alleging they colluded to fix prices and underpay Florida pharmacies.

The lawsuit targets Prime Therapeutics LLC and Express Scripts, Inc., claiming the competing companies entered into an illegal horizontal price-fixing agreement that threatens Floridians' access to affordable medications.

According to the complaint filed in Polk County Circuit Court, the competitors announced a "collaboration" in December 2019 under which Prime adopted Express Scripts' significantly lower reimbursement rates.

"Floridians—especially our seniors and families—depend on local pharmacies for the medications that keep them healthy," Uthmeier said. "Prime and Express Scripts colluded to fix prices and underpay those pharmacies, forcing many to fill prescriptions at a loss."

The agreement took effect in April 2020, has been extended multiple times and remains in effect today. Prior to the deal, Prime's reimbursement rates were roughly 20% higher.

After the agreement, reimbursement rates declined for around 80% of branded drugs and 70% of generic drugs, turning many prescriptions into losses for the pharmacies patients rely on. A pharmacy outside Orlando saw its reimbursement for one drug drop 45%, turning a profit into a $15.45 loss per prescription, according to the Florida Attorney General's office.

Prime valued the first three years of the arrangement at $2.5 billion in "cost savings" extracted from those pharmacies. The lawsuit alleges a per se violation of the Florida Antitrust Act as horizontal price-fixing, as well as unfair methods of competition under the Florida Deceptive and Unfair Trade Practices Act.

"When pharmacies struggle or close, patients lose local options and access to care," Uthmeier said. "My office is holding them accountable to protect Florida patients."

The Attorney General seeks injunctive relief, civil penalties, disgorgement, damages and other remedies to stop the ongoing harm and protect patients' access to care.

The two groups did not immediately respond to the lawsuit.