Class Action Targets Caremark

May 11, 2004
A class action lawsuit charges pharmacy benefits management firm Caremark Rx Inc. violated the Tennessee Consumer Protection Act with its mail order service policy. The suit accuses Caremark of “unfairly and deceptively representing to consumers” that they must use the company’s mail order pharmacy system rather than retail pharmacies.

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Two Tennessee employees of Ryder Integrated Logistics, J. C. Crabtree of Niota, Tenn., and James Teague of Cleveland, Tenn., are the plaintiffs in the suit.

The complaint charges that prior to Jan. 1, 2003, Caremark required that beneficiaries buy certain “maintenance” drugs, such as high-blood pressure pills, only through the mail-order pharmacy — an alleged violation of Tennessee law. The plan’s language — changed on that date — now reads that maintenance medications can be filled at the retail level, but are subject to higher co-pay fees.

The difference in pricing, for example, means a 90-day supply of a generic drug bought through a retail pharmacy is $30 under the plan while its mail-order equivalent is $20, the suit alleges.

A similar case is pending in Memphis.

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