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WHEREAS, diabetes is an epidemic, impacting over roughly ten percent of people in the United States.

WHEREAS, insulin is a necessary and life-saving medication to treat diabetes.

WHEREAS, in general terms, the City of Portland has spent millions of dollars over the last several years, through its self-insured health insurance to cover the cost of insulin for City employees and their dependents.

WHEREAS, insulin prices have dramatically increased over the last twenty years despite limited innovation and decreased costs associated with manufacturing. Since 2003, the list price of some insulins has increased by more than 1000%.

WHEREAS, there is evidence that insulin manufacturers, pharmacy benefit managers, and potentially others have artificially inflated the price of insulin, resulting in increased out of pocket expenditures for self-insured healthcare plans like the City of Portland.

WHEREAS, three drug companies, Eli Lilly, Novo Nordisk, and Sanofi, manufacturer nearly all insulin purchased in the United States.

WHEREAS, Pharmacy Benefit Managers, including Express Scripts, CVS Caremark, and Optum Rx, have developed a market where they demand large rebates and other payments for preferred formulary placement. This system of rebates has resulted in manufacturers charging artificially increased prices for insulin to both payors, like the City of Portland’s self-insured plan, and plan members.

WHEREAS, the law provides a potential remedy for the City to recover money wrongfully paid for artificially inflated insulin prices in connection with the City’s self-insured health insurance plan.  

WHEREAS, it is in the public interest for the City to recover the public funds expended because distortions to market prices resulted in improper and excessive expenditures for insulin.

NOW, THEREFORE, BE IT RESOLVED, that, the City Attorney or their designee is authorized to commence an action in any competent tribunal to protect the City’s rights and recover damages and/or any other relief against insulin manufacturers, pharmacy benefit managers, and others as identified in connection with the pricing of insulin, for which there is a good faith basis to assert legal claims, and to pursue to conclusion in any higher tribunal and to make any stipulation, agreement, or admission as in their judgment may be in the best interest of the City. The City Attorney is further authorized to retain outside counsel to assist in the prosecution of such litigation if in their judgment doing so is in the best interest of the City.