Drugstore chain Walgreen Co. said Monday it will end its relationship with competitor CVS Caremark’s pharmacy benefits manager due to network and reimbursement problems, among other issues, The Associated Press reports.
Walgreen, which is based in Deerfield, Ill., said Caremark’s approach to Walgreen as a community pharmacy within the CVS Caremark retail network has “fundamentally changed” in the three years since the CVS-Caremark merger.
Both chains have stores throughout Connecticut. Walgreen has a regional distribution center in Windsor.
“Unfortunately, as a result of CVS Caremark’s pharmacy benefit management practices toward Walgreens, it no longer makes good business sense for Walgreens to be part of their network for new and renewed plans,” Walgreen CEO Greg Wasson said in a statement from the company.
Walgreen is the largest U.S. drugstore chain in terms of locations and revenue, slightly ahead of CVS Caremark.
Walgreen said CVS Caremark’s promotion of some plan designs disrupts networks by requiring patients with chronic conditions to use CVS Caremark services. It cited the “growing unpredictability” of CVS Caremark’s reimbursement rates and said payments for certain drugs don’t reflect the market.
Walgreen also said a lack of information from CVS Caremark makes it difficult to decide whether to participate in new or altered CVS Caremark prescription drug plans.
Representatives of Woonsocket, R.I.-based CVS Caremark did not respond immediately to a call seeking comment from The Associated Press.
Walgreen said current CVS Caremark plans in which it is already a pharmacy provider will not be affected.
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