Indiana sues Eli Lilly alleging insulin price-fixing scheme

Indiana is suing Indianapolis-based Eli Lilly and Company, accusing the pharmaceutical giant of inflating insulin prices through a coordinated pricing scheme involving secret rebates.

The lawsuit alleges Lilly conspired with pharmacy benefit managers to artificially inflate the sticker prices of insulin. The state claims Lilly pays secret rebates to these middlemen in exchange for preferred placement on drug formularies, driving up costs for patients even though insulin costs the company less than $2 to manufacture.

The state claims Lilly charged between roughly $300 and $700 for some insulin products.

The lawsuit, filed Dec. 31 in Lake County Superior Court, builds on legal action Rokita took in March 2024 against other drug manufacturers and pharmacy benefit managers over insulin pricing. In announcing the suit, Rokita said pharmaceutical companies should not take advantage of Indiana residents or other Americans — including companies headquartered in Indiana.

“For two years, I attempted to resolve this matter with them amicably and without litigation — an effort not required by the state and one not afforded to Lilly’s out-of-state competitors,” Rokita said in an announcement. “Lilly, which maintains by far the largest market share for insulin, rejected this outreach and consumed two years of time.”

In a statement to WFYI, a company spokesperson said Lilly has taken “industry-leading” steps to lower insulin costs, including capping patient out-of-pocket costs at $35 per month and cutting list prices by 70%. The company said the average monthly out-of-pocket cost for Lilly insulin was under $15 in 2024.

Eli Lilly and Company has faced lawsuits over the prices of insulin in other states, including in Minnesota, where the company settled a lawsuit brought by the state’s attorney general. The settlement, which was finalized in 2024, guaranteed that Minnesota residents could buy Lilly-produced insulin for only $35 a month for the next five years. 

Another lawsuit filed last year in Massachusetts alleges similar actions as in Indiana, claiming drug manufacturers, including Eli Lilly, have increased the prices of their insulins up to 1,000%.

President Donald Trump has sought to lower drug costs through agreements with pharmaceutical companies, including Eli Lilly and Novo Nordisk, to reduce prices for insulin, diabetes medications and migraine drugs purchased through TrumpRX — a government-backed website expected to launch this month.

Farrah Anderson is an investigative health reporter with WFYI and Side Effects Public Media. You can follow her on X at @farrahsoa or by email at fanderson@wfyi.org.