Retail News Breaks
Reports: Walgreens reaches Medicaid Rx deal in Delaware
August 11th, 2009
WILMINGTON, Del. – Walgreen Co. has agreed to keep filling prescriptions for Medicaid patients in Delaware, according to published reports.
Last week Walgreens for the second time extended its deadline for filling Medicaid prescriptions in Delaware after announcing it would stop doing so because of the state's cut in pharmacy reimbursement rates. The drug store chain pushed the deadline to August 11 after extending it by 30 days early last month to August 5.
However, Reuters reported that Walgreens and Delaware agreed in principle on Monday to a reimbursement rate of 85.5% of the average wholesale price (AWP), a bit more than the 85% rate that the state had accepted in earlier negotiations with the chain.
The report said Delaware wouldn't make the agreement official until two drug retailer industry groups, the National Association of Chain Drug Stores and the National Community Pharmacists Association, dropped a pending lawsuit against the state over reductions in pharmacy reimbursement rates.
Delaware indicated that if the suit is dropped, it would increase pharmacy reimbursement for filling some prescriptions with generic drugs, according to Reuters. Walgreens had previously pointed to higher dispensing rates for lower-cost generic drugs as one way the state could achieve savings in the Medicaid program.
Deerfield, Ill.-based Walgreens had announced in early June that it would stop filling Medicaid prescriptions starting July 6 in its 66 Happy Harry’s pharmacies in Delaware. The retailer cited "new and extreme" cuts in pharmacy reimbursements, explaining that in many cases it would be filling prescriptions for brand-name drugs at a loss.
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