Rite Aid Facing Class Action Claiming It Overcharges for Generic Drugs

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Echoing a lawsuit filed against Walgreens back in May, a California consumer alleges in a new proposed class action that Rite Aid Corporation overcharges those enrolled in both private and public healthcare insurance plans for generic prescription drugs. The 42-page lawsuit claims Rite Aid, through its “deceptive and unfair pricing scheme,” submits to third-party healthcare plans copayments that are significantly higher than the nation’s third-largest pharmacy chain’s “usual and customary” costs for generics.

At the heart of Rite Aid’s alleged scheme, the lawsuit claims, is its Rx Savings Program, which allows cash-paying customers, i.e. individuals who purchase drugs without insurance, to buy generics at discounted prices. The lawsuit claims Rite Aid, through its Rx Savings Program, significantly undercuts the “usual and customary” prices for generics it reports to health insurance companies, and, thusly, “the amounts that individuals using insurance must pay for the drugs in the form of a copayment.”