Rite Aid Accused of Inflating Generic Drug Prices for Consumers with Insurance

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Rite Aid Corporation is facing another proposed class action alleging it engineered an “unfair and deceptive price scheme” to overcharge customers paying for generic drugs through third-party insurance plans.

According to the complaint, the defendant is not permitted to report to health insurance companies prices that are higher than what is “usual and customary” (U&C) for generic medicines, as measured by the “price that the pharmacy most commonly charges the cash-paying public,” i.e. customers who pay without insurance.

Instead, the suit claims the company reports inflated pricing to insurance companies rather than the discounted pricing it offers through its “Rx Savings Program” (RSP) to customers who don’t use insurance.

“Upon information and belief,” the complaint surmises, “Rite Aid implemented the RSP program as a scheme to maximize reimbursements from third-party payors and payments from consumers through fraudulently inflated U&C prices, while still remaining competitive for cash-paying prescription drug customers.”