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Nueces County hires outside counsel to pursue litigation over insulin pricing

Nueces County Commissioners Court · March 11, 2020
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Summary

Nueces County Commissioners Court voted to hire outside counsel led by attorney Kathy Snapka to investigate and, if appropriate, sue manufacturers and pharmacy benefit managers over alleged insulin price‑fixing that has raised local costs for self‑insured plans.

Nueces County approved hiring outside counsel on March 11 to investigate and potentially sue drug manufacturers and pharmacy benefit managers over rising insulin costs.

The commissioners voted to designate Kathy Snapka as lead outside counsel to develop a litigation plan that would seek recovery for the county’s self‑funded insurance program. Snapka’s presentation cited Harris County’s filing and congressional hearings that have focused attention on the high price of insulin and secret payments between manufacturers and pharmacy benefit managers (PBMs).

Snapka told the court the litigation team she proposes would include national experts on PBM practices and antitrust law and that Harris County’s filings alleged substantial county spending on insulin over multiple years. Commissioners asked that any contract be negotiated and then submitted for approval by the Texas attorney general, as required by state law for county litigation contracts.

The judge and several commissioners emphasized the distinction between manufacturers and PBMs — the proposed suit would not target individual doctors or pharmacists — and said the goal is to recover public funds and deter pricing practices that harm the county and residents who rely on insulin.

Next steps include negotiating a representation agreement, bringing the contract back to the court for formal approval, and seeking AG review before suit would be filed.