Governor Rell Calls on Rite Aid to Res

Press Release

Governor M. Jodi Rell today announced she has called for a review into an increase of prescription drug prices at Rite Aid pharmacies after the drugstore chain made key changes to its customer Rx Savings discount program by erroneously claiming that the higher prices and reduced benefits were required by a new state law.

"I sincerely hope that Rite Aid is not using a state law -- one that is actually designed to provide cost-savings for all its customers -- as an excuse to raise prices. If so, it amounts to a modern day bait-and-switch and Rite Aid is not being honest with consumers. I strongly urge Rite Aid to reconsider these changes," the Governor said.

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."

"The problem is not the law, the problem is the way Rite Aid is reacting to the law by penalizing customers through changes in its discount program, ostensibly to avoid across-the-board discounts to Medicaid and the general public," Governor Rell said.

The Governor 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 immediate reversal of changes in Rite-Aid's savings program that negatively affect Connecticut consumers.

"The law is a fair and just one and applies to all pharmacy discount programs. Our economy is still a very fragile one and Connecticut families need to look for ways to save wherever possible," the Governor said.

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.

"Just as I am grateful that CVS opted to join the pharmacies in Connecticut that are participating in this program, I expect that Rite Aid will decide to conform to the spirit and purpose of the law by restoring its pharmacy discounts," Governor Rell said.

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