A recent class-action settlement has Walgreens agreeing to pay $100 million to resolve allegations of fraudulent pricing practices, TikToker and lawyer Angela Cenedella (@thelawyerangela) broke down in a viral video.
In her video, which has amassed 2.2 million views, Cenedella breaks down the claims and what they mean for affected consumers.
What is Walgreens allegedly accused of?
Cenedella reveals that, according to the lawsuit, Walgreens is accused of inflating drug prices for customers using health insurance, resulting in copays that were sometimes higher than the cash price of the same medication.
“The allegation is that Walgreens greatly inflated the price of their drugs when customers were using health insurance so much so that even your copay alone may have been higher than what Walgreens was charging cash-paying customers,” Cenedella explains.
She provides an example of the price disparity, stitching a chart on the screen.
“Look at this chart comparing the prices of generic prescriptions—$4 at Walmart and Target, $9.99 at ShopRite, $10 at Walgreens’ cash price, and then $43.98 if you’re using insurance,” she says.
Cenedella further explains that the lawsuit doesn’t argue that cash-paying customers should have paid more, but rather that the cash price reflects the true cost of the prescriptions.
The claim alleges Walgreens unjustifiably increased the price for insured customers.
Who qualifies for a payout?
According to Cenedella, the settlement class includes all individuals or entities in the United States who paid for one or more prescription drugs from Walgreens using insurance benefits.
“As soon as that window to claim opens, I will show you how to fill it out,” Cenedella adds.
Is this real?
According to Healthcare Finance News, Walgreens agreed to a $100 million settlement to resolve a seven-year-old lawsuit, Russo v. Walgreens Co. The suit claimed Walgreens inflated drug prices by not including the discounted rates from its Prescription Savings Club when calculating “usual and customary” prices. As a result, insured customers often paid more than cash-paying customers.
Reuters reported that the Prescription Savings Club offered over 500 generic drugs at low prices for a small annual fee, but insured customers ended up paying higher copays and deductibles.
This case follows another in September, where Walgreens paid $106.8 million for allegedly billing federal healthcare programs for prescriptions never picked up by customers, according to the Department of Justice.
Viewers react
Users shared their many experiences with getting overcharged for medication in the comments.
“I 1000% believe this,” said one user. “Walgreens charged me over $300 for a prescription and I get it for free at Costco. Same insurance.”
“All retail pharmacies do this,” claimed another. “You need to find your local 340B pharmacy to get the best pricing. It’s typically going to be located inside of the hospital. Financial Counselor for a hospital here.”
“Can’t wait! My son was on Vyvance, and Fluoxetine for 2 years until I realized they were overcharging with BCBS insurance vs cash price,” shared a third. “$175/m”
The Daily Dot has reached out to Angella Cenedella (@thelawyerangela) via email and Instagram DM. We’ve also contacted Walgreens via email.
@thelawyerangela HOW to File. Send to your plant-based meat loving friends #beyondmeat #plantbased #plantbasedprotein #plantbasedtiktok #protein #classaction #settlement #lawsuit #vegetarian #plantbaseddiet ♬ original sound – 💥 LAWYER Angela 💥
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