Connecticut AG Supoenas Rite Aid Over Price Hikes

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subpoenaConnecticut Attorney General Richard Blumenthal claims Rite Aid pulled a fast one on consumers when it raised some prices, but then turned around and blamed the state for taking its action. And so he has issued a subpoena seeking information about how Rite Aid decided to charge what it does on numerous meds.

To be specific, a new state law requires pharmacies to provide the same discounts to Medicaid and other state programs that are offered to consumers. However, the AG charges Rite Aid instead simply increased prices and made other changes to its Rx Savings discount drug program in the state. And then the pharmacy chain posted signs blaming its higher prices and program changes on the new law.

What sorts of changes? Blumenthal cites an increase in the cost a 30-day supply of some generics from $8.99 to $10.99; eliminating the offer of a 90-day supply of selected generic drugs for $15.99; and eliminating discounts for oral contraceptives, brand meds and certain medical supplies, including diabetic strips for measuring blood sugar. These changes weren’t made in other states.

“I am concerned that Rite Aid has singled out Connecticut residents by eliminating or reducing key drug discount benefits, while continuing to offer those benefits to residents in other states,” wrote in a letter to Rite-Aid execs, according to this statement. “…I am deeply troubled, moreover, by Rite Aid’s misleading public statements that Connecticut law requires Rite Aid to impose these drug price increases on Connecticut consumers.

“Section 17 of Public Act 10-179 requires Connecticut pharmacies that offer discounts on prescription drugs to the general public to charge the same amounts to the Connecticut Medical Assistance program, which is funded entirely through state and federal taxpayer dollars,” he continued. “Nothing in the act prohibits Rite Aid from continuing to offer the same drug discount benefits to Connecticut residents through its Rx Savings program that it offers to the residents of other states.”

A Rite Aid spokeswoman tells us this: “It is our intention to cooperate fully with the attorney general and the Department of Consumer Protection. We are confident we have not violated any laws and look forward to working with the attorney general and the department to resolve the issue.”

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