Class Action Claims Rite Aid Overcharges For Generic Drugs

Our attorneys have filed a new class action on behalf of New York consumers; the complaint alleges that Rite Aid Corporation has deceptively overcharged thousands of New York consumers for generic drugs. Rite Aid advertises that consumers who join its “Rx Savings Program” will pay only $8.99 for a 30-day supply of more than 500 listed generic drugs, and $15.99 for a 90-day supply of the same 500 offerings. Rite-Aid offers “membership” in the Rx Savings Program, regardless of whether a consumer has health insurance or not. As a result, for those members who do have health insurance and who would otherwise be required to make an expensive copayment, membership in the Rx Savings Program offers the consumer significant savings.

However, we have uncovered evidence indicating that Rite Aid’s pharmacy computer system is programmed with a default setting that charges consumers their applicable insurance copayment, rather than the Rx Savings Program price. Given ever-escalating insurance costs, this copayment is oftentimes higher than the Rx Savings Program price. For example, a member of the Rx Savings Program with an insurance plan that requires a $25 co-pay for prescription medicine will be charged as a default the $25 co-pay, rather than the lower, advertised Rx Savings Program membership price. As a result, Rx Savings Program members who have had prescriptions processed using insurance are, unbeknownst to them, being charged a copayment that is higher than the Rx Savings Program price they should otherwise be charged.

Unfortunately, this deceptive practice may not be limited to Rite Aid. Most large retail pharmacies, such as CVS, Wal-Mart and Walgreens, have a generic drug savings program; if their pharmacy registers are programmed the same way Rite Aid’s appear to be, consumers may be at risk no matter where they have their prescriptions filled. If you have insurance that covers prescriptions and you purchase generic drugs, be sure you don’t pay a higher copayment, and it might be a good idea to check your records for prior purchases. It is possible that you have been charged an expensive copayment for your generic drugs instead of the price available through your pharmacy’s generic drug savings program.

If you or anyone you know has paid a copayment for a generic drug that is higher than the price advertised under a pharmacy’s savings program, please contact us to discuss your legal options.