Massachusetts Attorney General Andrea Campbell is suing Woonsocket, Rhode Island based CVS.
The AG contends that the company is charging Medicaid patients more for prescription drugs than they are charging for cash paying customers.
In her complaint, AG Campbell alleges that CVS offered lower drug prices to cash-paying customers through a discount program administered by a company called ScriptSave but evaded its responsibility to report and bill MassHealth the lower, discounted rates. The complaint alleges that this conduct violated Massachusetts pricing regulations, which require pharmacies to charge MassHealth the lowest price they charge any other customer.
“When pharmacies offer discounted drug pricing to its customers, they must also charge MassHealth that same low price,” said AG Campbell. “At a time when costs are sky-high, our taxpayers should not have to foot the bill for pharmacies’ inaccurate price reporting.”
CVS officials are disputing the claims by the Attorney General and say they will fight the charges in court.
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