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Network for Public Health Law
Mitigating the Incidence and Severity of Injuries and Other Harms

Rahimi v. Rite Aid Corp.

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Overview

Rahimi v. Rite Aid Corp. (U.S. Court of Appeals, 6th Circuit, June 29, 2021): The 6th Circuit affirmed a lower court’s dismissal of a suit claiming that Rite Aid’s Rx Savings Program violated the False Claims Act (FCA). The Rx Savings Program provides generic prescription drugs at reduced prices. Those with prescriptions covered in full or in part by publicly funded healthcare programs, like Medicaid, are not eligible for participation. Rahimi, a pharmacist, claimed that Rite Aid violated the FCA by billing publicly funded programs more than payers eligible for the Program. FCA regulations require pharmacies to charge government program participants the “usual and customary” rate. The FCA only allows private citizens like Rahimi to bring claims under the FCA when the alleged fraud is not otherwise publicly disclosed. The district court dismissed Rahimi’s claims because public disclosures occurred when the Connecticut Attorney General’s office investigated Rite Aid’s program and again when HHS announced its review of Medicaid claims for generic drugs to determine which pharmacies are billing at the usual and customary rates. The 6th Circuit upheld that decision. Read the decision here.

View all cases in the Judicial Trends in Public Health – September 15, 2021.

View all cases under “Mitigating The Incidence & Severity of Injuries & Other Harms.”