TX Mutual Complains of Gouging

Texas Mutual Insurance Company, formerly the Texas Workers’ Compensation Fund, filed a lawsuit accusing four pharmacy chains and two third-party billing companies with price gouging, claiming they overcharged the company more than $1 million for workers’ compensation patients’ prescriptions. Defendants named in the suit include Eckerd, Wal-Mart, H.E.B. and Walgreens pharmacies, and third-party billing companies Third Party Solutions Inc. and Apollo Enterprises Inc. Texas Mutual alleges that the companies charged more for workers’ comp-covered prescriptions than they would have for those not covered by workers’ comp. The pharmacies and third-party billing companies are accused of regularly and knowingly submitting inflated bills. The insurer is requesting restitution of more than $1 million, as well as interest, attorney fees, and other damages and penalties applicable under the law. It is also seeking a permanent injunction to prevent the defendants from submitting overpriced claims in the future.

Topics Texas Workers' Compensation