DRUG PRICING WAR LEADS CVS AND WALMART TO PART WAYS

The Daily Caller | 8/15/2013 | Staff
Caris (Posted by) Level 3
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Walmart and CVS Health’s pharmacy benefit management (PBM) division announced they’re parting ways Tuesday, meaning that most people who have CVS Health drug plans will no longer be able to pick up their prescriptions at Walmart locations.

The split was brought on by a pricing dispute. Walmart maintained that CVS was trying to control where customers filled their prescriptions, according to Bloomberg.

Value - Customers - Business - Pharmacy - Value

“We are committed to providing value to our customers across our business, including our pharmacy, but we don’t want to give that value to the middle man,” Walmart said in a statement to The Daily Caller News Foundation Tuesday. “This issue underscores the problems that can arise when a PBM can exert their unregulated power to direct members on where to fill their scripts, disrupting patients’ healthcare.”

“Walmart’s requested rates would ultimately result in higher costs for our clients and consumers,” CVS Caremark President Derica Rice said in a statement Tuesday. “While we have enjoyed a long relationship with Walmart as a low cost provider in our broad national networks, based on our commitment to helping our clients and consumers manage rising pharmacy costs, we simply could not agree to their recent demands for an increase in reimbursement.”

CVS - Caremark - Portion - CVS - Revenue

CVS Caremark doesn’t just account for a portion of CVS revenue. It makes up most of its revenue, according to Bloomberg. More than 93 million Americans have CVS-administered prescription drug plans. The CVS-Walmart split will not affect Medicare Part D beneficiaries or customers picking up prescriptions at Sam’s Clubs, according to the CVS statement.

CVS tried to downplay...
(Excerpt) Read more at: The Daily Caller
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