Walgreen Co. has again extended its deadline for filling Medicaid prescriptions in Delaware after announcing it would stop doing so because of proposed cuts in pharmacy reimbursement rates.

The Delaware Department of Health and Social Services (DHSS) reported Wednesday that Walgreens will allow Delaware Medicaid participants to fill prescriptions at its pharmacies until August 11. Meanwhile, the state and the drug store chain will continue talks to resolve the reimbursement issue.

WILMINGTON, Del. — Walgreen Co. has again extended its deadline for filling Medicaid prescriptions in Delaware after announcing it would stop doing so because of proposed cuts in pharmacy reimbursement rates.

The Delaware Department of Health and Social Services (DHSS) said Wednesday that Walgreens will allow Delaware Medicaid participants to fill prescriptions at its pharmacies until August 11.

The drug store chain early last month had extended the deadline by 30 days to August 5.

DHSS reported that Walgreens agreed to the new extension so it could continue to work with the state to reach a solution on the pharmacy reimbursement issue. The department and the chain have said that includes ways to help the state meet its savings target for the program.

Citing "new and extreme" cuts in prescription reimbursements, Deerfield, Ill.-based Walgreens announced in early June that it would stop filling Medicaid prescriptions starting July 6 in its 66 Happy Harry’s pharmacies in Delaware.