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On July 30, a class action lawsuit was filed against CVS Health Corp. by a Class of consumers who allege the chain drug store purposefully overcharges consumers paying with insurance for generic drugs, when CVS sells these same drugs to uninsured consumers for less than the charged insurance copay.
Plaintiffs Christopher Corcoran, Robert Garber, Toni Odorisio, Robert Guarnieri, Onnolee Samuelson, Ron W. Coder, and Irma Pacheco have filed this CVS class action lawsuit in California federal court alleging they were charged more through their copays for generic drugs bought in CVS than consumers paying cash through the store’s Health Savings Plan. Odorisio claims, for example, that he filled a 30-day generic drug prescription at CVS and paid a $5 copay, while a Health Savings Pass member was allegedly only charged $3.99 for the same drug.
According to the CVS Health Savings Pass class action lawsuit, the pharmacy systematically submits claims to third-party payors like insurance companies at inflated prices, which then causes the insurance to charge a higher co-pay to consumers who are attempting to purchase the pharmaceutical product with their insurance plan. The seven consumers who filed this CVS class action claim that CVS consumers who use their insurance to pay for their pharmaceutical purchase allegedly pay three to four times the usual price for a generic brand drug.
The drug store company has established a discount program for consumers who do not or choose not to have insurance called CVS’ Health Savings Pass, which the plaintiffs claim is instrumental to the fraud allegedly perpetrated against the consumers who do have and use health insurance.
According to the CVS Health Savings Pass class action lawsuit, the discount program allows consumers enrolled in it to pay incredibly discounted prices for generic drugs, which in turn boosts CVS’ marketing share. However, the plaintiffs claim that it is this Health Savings Pass program that allows the drugstore to conceal the true prices of generic brand drugs sold in their stores from third-party payors/insurance companies, allowing CVS to overcharge for these drugs.
“In essence, the unlawful scheme that CVS designed allowed CVS to have its cake and eat it too: CVS could maintain and increase its cash-paying customer base while also maintaining higher reimbursement payments from third-party payors and higher copays from plan participants who filled their prescriptions at CVS pharmacies,” the CVS class action lawsuit alleges.
The CVS Health Savings Pass class action lawsuit covers more than 400 generic drugs sold by CVS through their Health Savings Plan and potentially affects millions of consumers who were taken advantage of through CVS’ alleged misconduct.
A similar CVS class action lawsuit was filed in Massachusetts, but has since been dismissed.
The plaintiffs are represented by Michael P. Lehmann, Christopher L. Lebsock, Bonny E. Sweeney, Richard Lewis and Kristen Ward Broz of Hausfeld LLP, and Pat A. Cipollone, Rebecca R. Anzidei and Robert B. Gilmore of Stein Mitchell Muse Cipollone & Beato LLP.
The CVS Health Savings Pass Class Action Lawsuit is Christopher Corcoran, et al. v. CVS Health Corp., Case No. 3:15-cv-03504, in the U.S. District Court for the Northern District of California.
UPDATE: On Mar. 8, 2016, a California federal judge indicated that she wouldn’t dismiss a class action lawsuit that alleges CVS overcharges for generic drugs. However, she also suggested the case may not belong in California.
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8 thoughts onCVS Sued in Health Savings Pass Class Action Lawsuit
When will I know if I am to receive a settlement check.
How and when will I know if I will receive a refund check.
i had been saying this all along..and even have the emails i sent to cvs about it. They raised my charges by 600%. The pharmacist even told me if i paid cash it would be much cheaper.my response was then why do i have insurance??
UPDATE: On Mar. 8, 2016, a California federal judge indicated that she wouldn’t dismiss a class action lawsuit that alleges CVS overcharges for generic drugs. However, she also suggested the case may not belong in California.
I would like to thank the plaintiffs for coming forward with their false accusations. I WAS a member of the CVS Health Savings Pass due to the fact that we (my family) do not have health insurance. The CVS Health Savings Pass cost me $15 annually and IF our medicine was on the $11.99 Generic List, we paid 11.99 every single time. $3.99? you have got to be kidding me. Since there no longer is the CVS Health Saving Pass, this evening I had to pay $23.00 vs $11.99 for one of our prescriptions. You should consider yourself extremely lucky to have insurance. If you had a prescription for Symbicort, I will assume your co-pay is what $35-$50? or better yet, your co-pay is $3.99? Since I do not have insurance I have to pay $299 to your $35-$50. Atrovent – I have to pay $283 to your $35-$50. Why do I have to pay this amount? Ask an asthmatic. You have taken away the little bit of help that we needed. You DISAPPROVE 11.99 and APPROVE $299?
ALWAY ASK your pharmacist – what is their best price vs. any discount card program….they should tell you the cheapest method! Also, check the website for your brand name drug, i.e., Symbicort, they have savings coupons and programs for individuals WITHOUT insurance!
How do you become part of the CVS Pharmacy class action filed on July 30, 2015?
I would like to know the answer to that question, also. I know my family are among this group. I have been using this pharmacy for years. I even had a nurse comment on how much it was costing me for a generic drug I was taken. It was almost as much as the name brand.