RIte Aid Corp overcharging lawsuit
Drug Retailer Rite Aid Accused of Inflating Price of Generic Drugs
July 5, 2017
A group of plaintiffs have filed suit in California against Rite Aid Corp., alleging that the major drug retailer systematically overcharges customers who pay for drugs with their insurance plans. The suit alleges that customers who pay with cash are routinely charged lower prices via Rite Aid’s discount plan.
The plaintiffs allege that Rite Aid’s price-tier structure is inherently discriminatory, and that it results in falsely inflated co-payments for customers who pay for drugs with their insurance plans.
Rite Aid launched its Rx Savings Program (RSP) in 2008. RSP offers discount prices on more than 350 generic drugs. The suit alleges that, even though the lower prices offered by RSP were available to all customers, Rite Aid reported the higher, non-discounted price to third-party payors, such as insurance plans’ medication payment programs.
The differential between RSP prices and non-discounted prices, the complaint alleges, can be as large as a factor of 10.
Lead plaintiff Bryon Stafford currently seeks additional plaintiffs for the putative class-action suit. Rite Aid has not commented on the complaint.
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