Merck-Medco Files Retail Chains Antitrust Suit

Merck-Medco Managed Care Inc has filed a suit in the Federal District Court, alleging that four pharmacy retailers engaged in an illegal antitrust conspiracy in a December 1995 boycott of the Maryland state employees and retirees' prescription drug benefit program. The suit is against Rite Aid Corp, NeighborCare Pharmacies Inc, Giant Food Inc and Epic Pharmacy Network Inc, and seeks treble damages and injunctive relief for antitrust violations under federal and state laws.

The suit against Rite Aid is for false and misleading advertising over claims that the reimbursement rate in the Maryland plan was below the pharmacies' costs. According to complaints, says MMMCI, the prices the pharmacies charge customers directly are in some instances below those of the reimbursement rate proposed for the Maryland plant. Moreover, it adds, each of the defendants named in the suit had participated or currently participates in Medco networks for other clients at the rates proposed for the Maryland plan.

In filing the suit, MMMCI says it is taking this action to prevent retail pharmacy providers from engaging in illegal, anticompetitive behavior designed to protect the retailers' interests at the expense of Americans served by group benefit plans, such as Maryland state employees, retirees and their families.