UPDATE: Rite Aid says it will continue to offer free COVID-19 tests in December
Shares of Rite Aid Corp. (RAD) were up 0.1% in after-hours trading on Tuesday after the drugstore chain confirmed that it will continue to offer no-charge COVID-19 testing in December. Rite Aid had announced Tuesday morning (http://www.marketwatch.com/story/rite-aid-to-start-charging-115-per-covid-19-test-from-dec-1-as-federal-funding-ends-2020-11-24) that it would begin charging $115 for symptomatic and asymptomatic diagnostic testing starting Dec. 1. The company currently does not charge people who come in for COVID-19 testing at its 301 testing sites. The Department of Health and Human Services said Rite Aid had notified HHS on Nov. 21 that it had conducted more tests than allocated in their contract, and that HHS had requested more funding for Rite Aid in response, according to a statement from Mia Heck, director of external affairs in the office of the assistant secretary for health. A Rite Aid spokesperson declined to comment beyond the news announcement. Rite Aid also on Tuesday announced plans to lower the age requirement for a COVID-19 test to 13 years old from 18 and said it plans to add 1,000 drive-through testing locations. All of the major drugstore chains in the U.S. including CVS Health Corp. (CVS) and Walgreens Boots Alliance Inc. (WBA) are offering coronavirus tests. Rite Aid's stock is down 28% so far this year, while the S&P 500 has gained 10.7%.
-Jaimy Lee; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 24, 2020 16:28 ET (21:28 GMT)
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