WALGREENS TO DIVORCE CVS? Walgreens and CVS have been having an affair of sorts but lately, there’s been some friction and it came to a head where Walgreens asked to slow things down separate and CVS, irked by this request, basically said “fine, lets break up sooner rather than later.” Something to do with the prescriptions Walgreens fills for CVS and Walgreens basically threatened to stop accepting CVS insurance. The confusing thing is that CVS and Walgreens are major drug store competitors, yet they had some contract whereby Walgreens would fill CVS prescriptions. Seems like a marriage made in heaven. But then somebody started to feel unsatisfied.
Last week, the companies said they would end their relationship and Walgreen would stop accepting Caremark insurance.Walgreen, based in Deerfield, Ill., with more than 7,500 stores across the country, wanted Caremark to pay it more for filling prescriptions, and it wanted Caremark to drop policies encouraging members to fill prescriptions at CVS’s 7,000 stores. Including the Walgreen and CVS chains, Caremark’s national network includes more than 64,000 pharmacies.Even before the companies’ long-standing negotiations over contracts that go into effect next year broke down last week, however, not all Caremark patients could fill their prescriptions at all pharmacies in Caremark’s network.Caremark said last week that Walgreen was demanding unreasonable rates that would drive up health care costs for both Caremark patients and benefit sponsors like employers. It said it would stop letting its patients fill prescriptions at Walgreen July 9.