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Pfizer settles New York probe into 'deceptive' copay coupons

Stock MarketsOct 11, 2018 01:40PM ET
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© Reuters. The Pfizer logo is seen at their world headquarters in New York

By Jonathan Stempel

NEW YORK (Reuters) - Pfizer Inc (NYSE:PFE) on Thursday settled charges by New York's attorney general that it misled consumers in its drug copayment coupon program into thinking they would pay far less to fill prescriptions than they ended up having to shell out.

The drugmaker agreed to pay $500,000 in fines and costs, and make more than $200,000 in restitution over the coupons, which can help consumers burdened by health insurance plans that carry high copayments and deductibles.

Pfizer's coupons said consumers would "PAY NO MORE THAN" $15, $20 or $25 for Estring to treat vaginal atrophy, Quillivant XR and Quillichew ER for attention deficit hyperactivity disorder, and Flector patches for acute pain from minor injuries.

New York Attorney General Barbara Underwood said this was "deceptive" because Pfizer buried limits on the total savings in the small print, and that thousands of consumers ended up paying much more.

Underwood said one woman got a surprise at her pharmacy register when she was required to pay $144.62 for Estring instead of the promised $15 maximum.

The settlement resolves claims from 2014 to 2017, and Underwood said the rate at which New York consumers paid more than the advertised maximums went up over time.

Pfizer changed the text of its coupons this year to say consumers could "pay as little as" specified amounts.

The New York-based company acknowledged some of the attorney general's findings but did not admit or deny liability.

Pfizer confirmed the settlement, and said reimbursements will go to consumers who used coupons in the last three years.

It refunded $129.62 to the woman who paid $144.62 for Estring after the attorney general's office intervened, according to a footnote in the settlement agreement.

Pfizer settles New York probe into 'deceptive' copay coupons
 

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