Kroger Overcharges Insurance for Generic Drugs Claims, Class Action Lawsuit

An Ohio woman has filed a class action lawsuit accusing Kroger of using deceptive pricing to overcharge consumers purchasing generic drugs.

Lead plaintiff Judy Kirkbride says the fraudulent pricing scheme affects customers with third-party insurance providers who purchase generic drugs at Kroger.

According to Kirkbride, when making submissions to these third-party providers, Kroger inflated the “usual and customary” prices it normally charged for generic drugs.

Instead of doing this and inflating the prices, the plaintiff says, Kroger should have listed its customary prices at the lowest amounts at which it sold the generic drugs, including those sold through its Rx Savings Club.

Because the third-party insurance companies use “usual and customary” prices to establish copay amounts, consumers such as Kirkbride paid more than they should have for their medications.

After contracting COVID-19 in December, Kirkbride says, she was prescribed two generic drugs by her doctor: doxycycline hylate and benzontate.

The plaintiff says she filled these prescriptions around Dec. 7 at a Kroger Pharmacy in Hebron, Ohio, paying for them using her Anthem MEdiBlue HMO insurance. 

Kroger allegedly reported a “usual and customary” doxycycline price of $88.49 and a benzontate price of $44.49 to Anthem. Based on these amounts, Anthem set Kirkbride’s copays at $11.70 for the doxycycline and $44.49 for the benzontate, for a total of $56.28 on the generic drugs.

“But, unbeknownst to Ms. Kirkbride, Kroger had reported inflated U&C prices to Anthem, which inflated her copayments,” the complaint says.

Kroger allegedly sells the doxycycline hylate for $9.82 and the benzontate for $6 through its Rx Savings Club.

Kirkbride argues that, including the Rx Savings Club’s annual membership cost of $36, she should have paid a maximum $51.82 out of pocket.

The plaintiff says she paid the amounts she did for the generic drugs with the understanding that the prices being reported to third-party insurers were accurate “usual and customary” rates paid by customers using cash. She says she would not have paid the inflated prices if not for “Kroger’s wrongful conduct.”

Kirkbride says she anticipates having to fill prescriptions for generic drugs at Kroger in the future, and therefore faces the prospect of having to pay additional inflated prices.

Formally, the class action lawsuit accuses Kroger of fraud, negligent misrepresentation, and unjust enrichment.

Kirkbride demands a jury trial and seeks an order declaring Kroger has violated the applicable laws; compensatory and punitive damages; prejudgment interest; restitution and other monetary relief; an order requiring Kroger to list accurate “usual and customary” pricing; and injunctive relief.

Do you believe you have paid inflated prices for generic drugs at Kroger? Let us know in the comment section below.

The plaintiff is represented by Scott D. Simpkins of Climaco Wilcox Peca & Garofoli Co. LPA and Joshua D. Arisohn and Joel D. Smith of Bursor & Fisher PA.

The Kroger Generic Drugs Class Action Lawsuit is Judy Kirkbride, et al. v. The Kroger Co., Case No. 2:21-cv-00022-ALM-EPD, in the U.S. District Court for the Southern District of Ohio, Eastern Division.

Read About More Class Action Lawsuits & Class Action Settlements:

• AbbVie Class Action Lawsuit Says Generic Competitors Were Paid Off
• N.Y., Ariz. CVS Customers Certified In Unfair Drug Pricing Class Action
• Juul Labs Misleading Advertising Claims Move Forward
• How to Appeal a Cigna Coverage Denial