Alabama Pharmacies Sue Over Alleged Price Fixing by Drug Plan Companies

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HEALTH Nieuws

PHARMACY,DRUG PRICES,PRICE FIXING

Five independent pharmacies in Alabama and Tennessee filed a federal lawsuit against companies controlling prescription drug plans, alleging price fixing to inflate profits at the expense of pharmacies.

Published: Dec. 24, 2024, 6:00 a.m. Star Discount Pharmacy in Huntsville was one of five independent pharmacies in Alabama and Tennessee to file a federal lawsuit in November arguing that the companies that control prescription drug plans are fixing prices.Now a coalition of independent pharmacies based mostly in northern Alabama are taking on the companies they say are to blame.

Star Discount Pharmacies in Huntsville, C&H Pharmacy in Fort Payne, Hunnington Pharmacy in Huntsville, Propst Discount Drugs in Huntsville and Reeves Drug Store in Pulaski, Tennessee filed a federal lawsuit in November. They argue that the companies that control prescription drug plans are fixing prices to increase their profits while paying independent pharmacies less. “Things have changed and trended in such a negative direction over the last eight years that it’s just become untenable,” said Trent McLemore, director of pharmacy at Star in Huntsville. “If I’m doing things the right way and I’m a good business person, I should be able to make a living doing that. But that’s not even an option anymore.” The lawsuit focuses on a specific setup involving GoodRx, a telemedicine company that lets you track prescription costs and provides discounts on drugs. The company, in partnership with Pharmacy Benefit Managers, or PBMs, have allegedly engaged in “a conspiracy to fix prices paid to pharmacies,” according to the lawsuit.“The whole system is convoluted and confusing… and I’m sure there’s a lot of intentionality to that — you keep it confusing so no one can really understand what you’re doing or try to challenge it,” said McLemore.McLemore’s father was an independent pharmacist in Moulton, a small town in north Alabama, when he was growing up. Back then, the more scripts you filled, the more money you made. “You didn’t look at reimbursement rates. You just knew you got paid more than it cost yo

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