Walgreens (WAG) Unveils Express Scripts Transition Plan
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Walgreens (NYSE: WAG) has unveiled a comprehensive national effort to help patients who are covered by an Express Scripts, Inc. (Nasdaq: ESRX), pharmacy network to continue using Walgreens when possible or to make a smooth transition to another community pharmacy. The plan seeks to minimize patient disruption and inconvenience when Express Scripts, a pharmacy benefit manager (PBM), ceases in-network coverage of prescriptions filled at Walgreens on Jan. 1, 2012. Walgreens Patient Transition Plan will assist Express Scripts members who depend on the chain’s more than 7,800 pharmacies after the PBM rejected Walgreens offer to reach a negotiated agreement before the existing contract expires on Dec. 31, 2011.
The Walgreens plan for Express Scripts members is designed to help patients during this transition period and includes a special discount during January on the annual membership fee for the Walgreens Prescription Savings Club that offers savings on more than 8,000 brand name and all generic medications. Walgreens also is providing additional pharmacist and staff consultations, more than 3.9 million letters to patients that are also available in stores, targeted communications with high-volume patients, additional call center staffing and information at 1-800-Walgreens, and information on the company’s website, Walgreens.com. The plan also includes communications with employers and health plans to help them inform their members of the Express Scripts situation and their choices. In addition, Walgreens is providing coupons for discounted health and wellness products and gift cards to eligible Express Scripts members.
Walgreens said it will continue to work closely with employers, health plans and mid-tier PBMs that wish to maintain access to the company’s pharmacies and expanding health and wellness services. To date, more than 120 Express Scripts clients have informed Walgreens that they have either switched to a different PBM or taken other steps, consistent with their contracts, to maintain access to Walgreens pharmacies in 2012.
The company’s discussions with employers and health plans make clear they place a significant value on having Walgreens in their pharmacy benefit networks and would not accept losing access to Walgreens without meaningful cost concessions from their PBM to compensate for the loss of pharmacy convenience, choice and service. According to a recent Walgreens survey, more than 80 percent of employers said they would not exclude Walgreens from their network for less than 5 percent savings on their total pharmacy costs; 60 percent of employers said they would not exclude Walgreens for less than 10 percent savings; and 21 percent would not exclude Walgreens from their network regardless of the savings.
The Walgreens plan for Express Scripts members is designed to help patients during this transition period and includes a special discount during January on the annual membership fee for the Walgreens Prescription Savings Club that offers savings on more than 8,000 brand name and all generic medications. Walgreens also is providing additional pharmacist and staff consultations, more than 3.9 million letters to patients that are also available in stores, targeted communications with high-volume patients, additional call center staffing and information at 1-800-Walgreens, and information on the company’s website, Walgreens.com. The plan also includes communications with employers and health plans to help them inform their members of the Express Scripts situation and their choices. In addition, Walgreens is providing coupons for discounted health and wellness products and gift cards to eligible Express Scripts members.
Walgreens said it will continue to work closely with employers, health plans and mid-tier PBMs that wish to maintain access to the company’s pharmacies and expanding health and wellness services. To date, more than 120 Express Scripts clients have informed Walgreens that they have either switched to a different PBM or taken other steps, consistent with their contracts, to maintain access to Walgreens pharmacies in 2012.
The company’s discussions with employers and health plans make clear they place a significant value on having Walgreens in their pharmacy benefit networks and would not accept losing access to Walgreens without meaningful cost concessions from their PBM to compensate for the loss of pharmacy convenience, choice and service. According to a recent Walgreens survey, more than 80 percent of employers said they would not exclude Walgreens from their network for less than 5 percent savings on their total pharmacy costs; 60 percent of employers said they would not exclude Walgreens for less than 10 percent savings; and 21 percent would not exclude Walgreens from their network regardless of the savings.
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