In January 2012, we filed a 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.
However, we have uncovered evidence indicating that Rite Aid’s pharmacy computer system is programmed with a default setting that charges consumers with insurance the 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. 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. In a bid to avoid liability and retain its ill-gotten profits, Rite Aid moved to dismiss the class action.
However, the Honorable Judge Seibel of the Southern District of New York denied that motion, holding that charging a price higher than advertised is deceptive under New York consumer protection law and results in the unjust enrichment at consumers’ expense. As a result, the case is going forward, and we look forward to obtaining a favorable result. 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.