According to Bloomberg, “CVS Health Corp. and Walgreens Boots Alliance Inc. were sued by California customers who accused the drugstore operators of charging co-payments for certain prescription drugs that exceed the cost of medicines.”
Questions:
1. What do Schultz’s and Grabstulz’s lawsuits claim in specific terms?
2. Cases have also been filed against which health insurance companies?
3. What is a clawback?
4. Where have the cases been filed?
5. What is a co-pay and how should each pharmacy account for just one of the prescriptions mentioned?
6. Do you consider this to be a fraud?
Source:
Feely, j. and J.S. Hopkins. (2017). CVS Health Is Sued Over ‘Clawbacks’ of Prescription Drug Co-Pays. Bloomberg, August 5 (Retrievable online at https://www.bloomberg.com/news/articles/2017-08-08/cvs-health-is-sued-over-clawbacks-of-prescription-drug-co-pays)