Pfizer will pay $975,000 to settle allegations that it misled customers with its copay coupon program, according to a STAT news report.
Five things to know:
1. Copay cards and coupons have become a popular marketing strategy offered by drug manufacturers.The coupons cut patients' out-of-pocket costs to promote branded medications — particularly those facing cheap alternatives — ultimately promising consumers savings at the pharmacy counter.
2. Pfizer's coupons stated that consumers would "pay no more than" $15 to $25 for certain medications. However, patients were often required to pay much more because of limits that were not prominently disclosed on the coupon.
3. Pfizer's $975,000 payment will resolve charges brought by the Oregon Justice Department.
4. The state Justice Department identified 371 customers who collectively paid about $40,000 more than the amount promised by the coupon the first time a prescription was filled, according to the settlement filing.
5. This is the second time that Pfizer paid to resolve coupon deception charges. Last October, Pfizer settled with New York for $700,000.