This post brought to you by Walgreens. All opinions are 100% mine.
For the last year, Walgreen’s has been negotiating a new contract with Espress Scripts, Inc. (NASDAQ: ESRX), the pharmacy benefit manager for Tricare, an insurance provider for America’s military families. Those negotiations were unsuccessful, and the contract expired on Dec. 31. As a result, Walgreens is no longer part of Express Scripts’ pharmacy provider network as of Jan. 1, 2012. This includes all Walgreens pharmacies nationwide and Duane Reade pharmacies in the New York City area. You can read more about the situation here: Walgreens and Express Scripts
Those people who are covered by Tricare have found that their prescription costs have not gone down as a result of this contract expiring–and some have even found their prices to be more. Added to that, they have to drive further to find a participating pharmacy. Express Scripts itself has stated that their patients will not see any significant savings from excluding Walgreen’s from their network.
Express Scripts could offer substantial savings to its clients by promoting 90-day refills at retail pharmacies, but it conflicts with its own mail order 90-day prescription business that it profits from.
Walgreen’s wants to support and protect the troops, but since they are being excluded from Express Scripts contract, they are no longer able to fulfill prescriptions for military families. Many patients under an Express Scripts plan have used Walgreens pharmacies for years. In an effort to minimize their disruption and inconvenience, Walgreens unveiled a comprehensive national effort to make this transition as smooth as possible and is doing all it can to help patients continue to use Walgreens when possible, or take care of them as they are forced to leave Walgreens in order to use their in-network coverage.
Only patients with certain prescription insurance plans managed by Express Scripts will be affected by this. Check with your local Walgreens pharmacist to find out for sure if you’re impacted. You can check the back of your prescription insurance card – if it says Express Scripts, then you may be affected. If it doesn’t say Express Scripts, then they are not affected.
To minimize the disruption Walgreen’s is offering a special discount on annual membership for its Prescription Savings Club at Walgreens. An individual can join during a special January promotion for only $5, or $10 for a family membership, and receive savings on more than 8,000 brand name and all generic medications. More than 400 generics are available with a three-month supply for less than $1 a week. Regular annual membership is $20 for an individual and $35 for a family.
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