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Consumer Protection probing Rite Aid price increases for discount program
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Aug 25, 2010 - 7:01 PM

Governor M. Jodi Rell today announced she has directed the Department of Consumer Protection (DCP) to subpoena records from Rite Aid after the company began charging customers higher prices for prescription drugs and reduced some benefits in its Rx Savings discount program after a new state law, designed to provide cost-savings, took effect this summer.

“Rite Aid needs to explain – in detail – the reasons for these spikes in prices. Consumers enroll in discount programs to save money and Rite Aid seems to be doing the opposite. It is inexplicable and I am greatly concerned that the company has blamed these changes on a new state law,” the Governor said. “Customers have complained that they were caught unaware and, frankly, they have every right to be upset.”

The law in question is Section 17 of Public Act 10-179, which requires Connecticut pharmacies that offer discounts and savings to the general public to provide those same discounts and savings to individuals on Medicaid. The law was part of the broader budget adjustment legislation passed by the Legislature in May.

Several Rite Aid stores have posted signs indicating that because of the new law Rite Aid “is required to modify the benefits available under the Rx Savings Program.”

“Our hard-pressed consumers deserve to know the facts behind Rite Aid’s decision,” DCP Commissioner Jerry Farrell said. “Governor Rell is absolutely right to call for this review and we will examine any and all pertinent records that led to the company’s decision. People are trying to save money wherever and whenever they can to pay their bills in this economy and changes to this discount program come as quite a blow.”

The Governor has also directed the Department of Social Services to work with the Attorney General’s Office to review the legality of the changes in Rite Aid’s discount program. She’s asked DSS officials to meet with Rite Aid representatives to seek an immediate reversal of changes in Rite Aid’s discount program.

Earlier this month, Governor Rell announced that CVS Caremark – which was considering ending its Health Savings Pass pharmacy discount program – informed her that the program will continue. The company’s decision came after Governor Rell wrote company officials in June questioning whether canceling the discount program might be an attempt by CVS to avoid complying with a new state law that requires pharmacies to give patients using taxpayer-funded Medicaid the same savings given to the public.

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