Sprouts Farmers Market Takes On PBMs and Big Insulin

Supermarket News Online Article – October 27, 2025

A new legal battle is putting pharmacy benefit managers (PBMs) back in the spotlight. This time, the challenger isn’t a drugmaker or a pharmacy — it’s Sprouts Farmers Market, a national grocery chain known for its focus on wellness and transparency.

On October 2025, Sprouts filed a lawsuit in New Jersey District Court against the three largest PBMs — CVS Caremark, Express Scripts, and OptumRx — along with insulin manufacturers Eli Lilly, Novo Nordisk, and Sanofi.

The claim is simple but serious: these companies allegedly colluded to inflate insulin prices by up to 1,000% over two decades, even as production costs stayed flat.

How PBMs and Drugmakers Worked Together

According to the lawsuit, PBMs used their power over national formularies — the lists that decide which drugs are covered — to steer patients toward expensive insulins that paid the biggest rebates.

Manufacturers, in turn, raised list prices to fund those rebates and keep their drugs on the PBMs’ preferred lists. Drugs excluded from a formulary became “virtually inaccessible for millions of patients.”

The result? Insulin that costs about $2 per vial to produce now sells for $300 – $700. Meanwhile, PBMs and other middlemen capture up to half of every insulin dollar — up from 25% just ten years ago.

The FTC’s 2024 Report Backed These Concerns

Sprouts’ lawsuit follows a major Federal Trade Commission (FTC) investigation released in 2024.

The report — “Pharmacy Benefit Managers: Ten Powerful Middlemen Inflating Drug Costs and Squeezing Main Street Pharmacies” — accused PBMs of using opaque rebate systems that inflate prices and drive independent pharmacies out of business.

Shortly after, the FTC sued CVS Caremark, Express Scripts, and OptumRx, arguing that their rebate practices violated fair-competition laws and harmed both patients and small pharmacies.

Why It Matters for Pharmacies and Patients

This case highlights what independent pharmacies have known for years: PBM practices raise costs and restrict access.

Patients lose when life-saving drugs become unaffordable. Pharmacies lose when reimbursements fall below cost. Employers and unions lose when self-funded health plans pay inflated prices.

Sprouts’ move could accelerate state and federal PBM reform efforts — similar to California’s SB 41, which bans spread pricing and requires transparency in pharmacy payments.

A Turning Point in the PBM Fight

Momentum is building. Regulators, lawmakers, and now even large employers are questioning how PBMs profit while contributing little to patient care or drug innovation.

For pharmacies, this is a crucial moment to push for fair contracts, clear reimbursements, and transparent pricing. The louder the advocacy, the faster the change.

About RescueMeds

RescueMeds champions transparency and patient-first pharmacy care. We serve injured workers, first responders, and independent providers who deserve fair access without PBM interference. We do not agree with the alleged PBM collusion and price gouging to consumers.

Our mission is simple — Fair pricing. Real access. Better care.

Join us today. Sign the Petition, send us your email and let’s hold PBMs accountable by requiring transparent costs and keep local pharmacies in our neighborhoods.

Rescuemeds