The Walgreen lawsuit, filed by Walgreens, has been a big issue in recent days. A recent New York Times article noted that the lawsuit is on hold pending the outcome of the Supreme Court’s decision on California’s Proposition 22.
In the lawsuit, Walgreen alleged that Proposition 22 violates the United States Constitution’s Due Process and Equal Protection clauses, due to the fact that it forces retailers to accept all prescription medications. Prop 22 passed as a ballot initiative in 1994. It was later challenged by drug companies and pharmacies.
Pharmacies, including Walgreens, argued that Prop 22 was meant to protect consumers from over-prescribing medication. Opponents said that Prop 22 was being used to eliminate competition in the industry and to reduce costs for pharmacies and patients. The case now goes to the Supreme Court. If it upholds Prop 22, the case will be moot.
Pharmacy advocates have fought Prop 22 in court. A federal appeals court upheld the ban on the pharmacies. Prop 22 has since been struck down by a California state court, but has not yet been overturned by the Supreme Court. Prop 22 will remain on the books, but it could end up being struck down again.
There is no question that Prop 22 had a significant impact on the pharmacies. A recent study by the Pew Charitable Trusts found that over two million fewer people used pharmacies in California. The loss of business caused by Prop 22 has led to some stores closing their doors.
There are other lawsuits involving pharmacies, such as the lawsuit filed by the Food and Drug Administration on behalf of pharmacy giants like Walgreen. This lawsuit claims that the FDA lacks jurisdiction over drug sales, because they are considered a “dispensing organization” instead of a manufacturer.
Many drugstores are suing drug companies, claiming that the companies have been taking advantage of pharmacies’ lack of expertise. Pharmacy owners say that drug companies like to provide coupons or freebies to consumers in order to encourage them to patronize their store. These offers include things like cash back rewards, free products, or items that are purchased together with a coupon. Instead of paying the pharmacy owner a commission for a single sale, pharmacies can pay a certain percentage of the sale price.
If the lawsuit ends in favor of the plaintiffs, drug companies will have to offer discounts on their products. or change their practice to avoid future lawsuits.
Prop 22 and its subsequent lawsuits against pharmacy owners may affect the way that doctors prescribe medications. Prescription medication can cost upwards of thousands of dollars for a month’s supply. With this type of high overhead, doctors may be reluctant to recommend more expensive drugs for their patients, particularly if they can get free samples or prescription discounts.
Many pharmacies are also worried about the effect that Prop 22 will have on their pharmacies’ ability to stay in business. If Prop 22 is struck down, they will have to close their doors, which means that they will have to give out prescriptions without any insurance.
One of the most talked about effects of Prop 22 is the increase in prescription drug prices. Patients now face higher rates for prescriptions than ever before. As well, some drugstores are experiencing a lack of revenue. Drugstores must cover many of the expenses that would be covered if Prop 22 is allowed to stand.
Prop 22 was a result of a deal the Walgreen family made with the pharmacists’ union. The union was concerned about Prop 22 and the cost of maintaining all the pharmacies in California, so they agreed to drop a lawsuit in exchange for reduced rates on prescriptions.
A judge in the case decided that the union may have had a reasonable claim. The case will be heard in front of the California Supreme Court.
