FTC settlement forces CVS Caremark to change insulin pricing, could save US patients $8.5 billion

The Federal Trade Commission announced it has settled a lawsuit against CVS Caremark, one of the nation's largest pharmacy benefit managers, over claims the company inflated insulin prices and restricted access.

Under the agreement CVS Caremark, owned by CVS Health, must alter its practices with employers, health plans and pharmacies. The FTC says the changes are expected to reduce out-of-pocket costs for Americans by up to $8.5 billion over the next decade.

The agency also estimates an additional $4.5 billion could be unlocked through pharmacy-counter rebates. The settlement targets a rebate system that the FTC described as "perverse," which it said favored higher list prices for insulin.