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DEERFIELD, Ill.(BUSINESS WIRE)
Walgreens (NYSE:WAG)(NASDAQ:WAG):
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Takes Action as a Result of Extreme State Medicaid Reimbursement Cuts
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44 Pharmacies Most Affected to Withdraw from Program
As a result of extreme reimbursement cuts in the State of Washington
Medicaid program, Walgreens (NYSE:WAG)(NASDAQ:WAG) today announced it
will withdraw 44 of its pharmacies from the state's Medicaid program as
of May 1. These 44 pharmacies represent more than 60 percent of the
company's total Medicaid business in the state and are found in
communities large and small. Walgreens operates 111 pharmacies
throughout Washington.
Under a new Medicaid reimbursement rule set to take effect on April 1,
the State of Washington will significantly reduce the price it will pay
for brand name medications, severely impacting the economic viability of
doing business in Washington.
Kermit Crawford, Walgreens senior vice president of pharmacy, said, We
have made the decision to stop filling Medicaid prescriptions in these
pharmacies after long and careful deliberations. Walgreens is the market
leader in Washington and provides cost-effective pharmacy service across
the state. We have thousands of loyal patients who appreciate and trust
our pharmacists, and we are absolutely committed to patient care.
The fact remains that the state could fill its Medicaid budget gap in a
number of other ways. As an example, independent and chain pharmacies
have identified as much as $90 million in potential savings through more
effective medication management. These are sound alternatives to payment
cuts to pharmacies.?
As the market leader in Washington, Walgreens has a strong track record
of efficiently and effectively delivering pharmacy services.
Walgreens performs significantly better than the average pharmacy in
Washington to save the state money by filling prescriptions with
generics as much as possible,? said Crawford. Today, we fill 77 percent
of state Medicaid prescriptions with generics, much higher than the
state average of 63 percent. Bringing the state's average up to
Walgreens level could, by itself, provide the Medicaid program with the
savings it's looking for.?
These pharmacy payment cuts could have a negative effect on Medicaid
recipients. Studies show that medications are effective at lowering
overall health costs by keeping people healthy and preventing expensive
hospital procedures, while comprising only about 10 percent of overall
health care costs. By limiting access to pharmacies, it is likely that
the state payment cuts will drive up other health care costs that
represent the majority of health expenditures.
Crawford said, We urge all elected and appointed officials to
reconsider this action and implement other cost savings measures that we
and others have suggested that would enhance patient care, rather than
harm it. The State of Washington now has the worst payment rate in the
country for brand name medications and one of the lowest rates among
state Medicaid programs for generic medications. We cant operate as
usual under that situation.?
Walgreens (www.walgreens.com)
is the nation's largest drugstore chain with fiscal 2008 sales of $59
billion. The company operates 6,679 drugstores in 49 states, the
District of Columbia and Puerto Rico. Walgreens provides the most
convenient access to consumer goods and services and cost-effective
pharmacy, health and wellness services in America through its retail
drugstores, Walgreens Health Services division and Walgreens Health and
Wellness division. Walgreens Health Services assists pharmacy patients
and prescription drug and medical plans through Walgreens Health
Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service
Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and
SeniorMed LLC (a pharmacy provider to long-term care facilities).
Walgreens Health and Wellness division includes Take Care Health
Systems, the largest and most comprehensive manager of worksite health
and wellness centers and in-store convenient care clinics, with more
than 700 locations throughout the country.
Walgreens
Tiffani Washington
(847) 914-2925
http://news.walgreens.com
Source: Walgreens
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