The Blubber

UnitedHealth Group has been found to charge patients exorbitant markups for life-saving drugs, with prices often exceeding the original cost by tenfold or more, according to a new report by the Federal Trade Commission (FTC).

The report also targets CVS and Cigna, highlighting systemic issues within the U.S. healthcare system. The findings follow last month’s tragic murder of UnitedHealthcare CEO Brian Thompson, which has further spotlighted frustrations with the healthcare industry.

The High Cost of U.S. Healthcare

The U.S. continues to have the highest healthcare costs per capita among developed nations, yet patient outcomes remain far below those in Europe’s social-market-based systems. Critics attribute this disparity to hidden inefficiencies and excessive markups, particularly from pharmacy benefit managers (PBMs)—the intermediaries that negotiate drug prices.

The FTC report revealed that UnitedHealth’s OptumRx, along with CVS Caremark and Cigna’s Express Scripts, generated $7.3 billion in additional revenue from 2018 to 2022 through price markups. The report noted that the "Big Three" PBMs increased prices on numerous specialty generic drugs by hundreds or even thousands of percent. For example, a 1,000% markup on a $10 drug would result in a $110 retail price.

Among the affected medications were Imatinib, a leukemia treatment, and Tadalafil for pulmonary hypertension, which were marked up by 1,000%. HIV treatment Lamivudine was priced nearly four times higher than its acquisition cost. The report estimates that 22% of specialty therapies analyzed experienced such steep increases.

Calls for Reform

Independent Senator Bernie Sanders has led Congressional hearings to expose the role of PBMs and drugmakers in driving up healthcare costs. The hearings aim to bring greater transparency to pricing practices that critics argue prioritize profits over patients.

UnitedHealth Group Under Scrutiny

UnitedHealth has also faced public backlash over its treatment of patients. The company’s insurance arm, UnitedHealthcare, reportedly denied claims at twice the rate of the industry average, according to ValuePenguin.

The murder of CEO Brian Thompson further drew attention to these issues. Luigi Mangione, the alleged killer, reportedly cited frustrations with the industry as his motive. His actions sparked widespread commentary on social media, with many expressing anger at how UnitedHealth’s practices had negatively impacted their families.