Hanover Insurance Unit Sued Over PBM Litigation Defense Costs

A Hanover Insurance Group Inc. unit should have covered legal defense costs in litigation with a pharmacy benefit manager, a pharmacy company said in a federal lawsuit.

Although the carrier doesn’t deny its duty to defend, it has refused and delayed payment of the millions of dollars the pharmacy spent on its defense, Care Zone Inc. alleged in a complaint filed Thursday in the US District Court for the Northern District of California.

CareZone sued Express Scripts Inc. in 2018 when it learned that the pharmacy benefit manager intended to terminate the pharmacy from its network. The PBM brought several ...