CVS Charges Insured Buyers More For Generics, Suit Claims

Law360, Los Angeles (July 30, 2015, 6:44 PM EDT) -- A putative class of customers accused CVS Health Corp. of running a scheme to overcharge insurance-using customers for generic drugs they sell to other customers for less than the cost of co-pays, according to a suit filed in California federal court Thursday.

The pharmacy systematically submits claims to third-party payors — insurance companies, in most cases — at fraudulently inflated prices, triggering a higher co-pay for customers using those insurance plans, a group of seven customers alleged in the proposed class action. Customers who use insurance end up paying three or four times the usual price of the generic drugs, according...

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