Walmart to exit certain CVS Caremark retail pharmacy networks
Walmart is bowing out of two CVS Caremark retail pharmacy networks.
CVS Health on Tuesday announced that the Bentonville, Ark.-based retailer would be leaving the CVS Caremark pharmacy benefit management commercial and managed Medicaid retail pharmacy networks. CVS Caremark has asked Walmart to fill these prescriptions as in-network through April 30. The change will not affect Walmart's participation in CVS Caremark's Medicare Part D pharmacy network, CVS Health said, adding that Sam’s Club will stay in the networks that Walmart is leaving.
The point of contention, CVS Health said, was reimbursement rates.
"At a time when everyone is working hard to find ways to reduce healthcare costs, Walmart's requested rates would ultimately result in higher costs for our clients and consumers," CVS Caremark president Derica Rice said. "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."
Rice said the company's focus now is an orderly transition for any impacted plan members "and ensuring we place patient care as our highest priority."
Members affected by this network change will be notified and will have access to information to help them identify nearby in-network pharmacies where they can fill their prescriptions, including independently owned, community-based pharmacies, other local pharmacies in grocery stores, and mass merchants, as well as regional and national chains.
CVS Health said that less than 5% of affected CVS Caremark members currently use Walmart solely to fill their prescriptions. The company said that more than 63,000 other pharmacies remain in its national pharmacy network.
"As CVS Caremark begins to prepare clients and members for a transition, we are hopeful that Walmart will agree to work amicably with us in the best interest of patients," Rice said. “CVS Caremark's priority is to ensure that patients continue to have access to their medications during this transition period. We also remain open to continuing timely good faith negotiations with Walmart in the hopes of reaching an agreement to provide quality pharmacy care at a reasonable cost."
Update: Walmart is calling off its plan to exit some of CVS Caremark’s retail pharmacy networks after the two companies returned to the table.
CVS Health on Tuesday announced that the Bentonville, Ark.-based retailer would be leaving the CVS Caremark pharmacy benefit management commercial and managed Medicaid retail pharmacy networks. CVS Caremark has asked Walmart to fill these prescriptions as in-network through April 30. The change will not affect Walmart's participation in CVS Caremark's Medicare Part D pharmacy network, CVS Health said, adding that Sam’s Club will stay in the networks that Walmart is leaving.
The point of contention, CVS Health said, was reimbursement rates.
"At a time when everyone is working hard to find ways to reduce healthcare costs, Walmart's requested rates would ultimately result in higher costs for our clients and consumers," CVS Caremark president Derica Rice said. "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."
Rice said the company's focus now is an orderly transition for any impacted plan members "and ensuring we place patient care as our highest priority."
Members affected by this network change will be notified and will have access to information to help them identify nearby in-network pharmacies where they can fill their prescriptions, including independently owned, community-based pharmacies, other local pharmacies in grocery stores, and mass merchants, as well as regional and national chains.
CVS Health said that less than 5% of affected CVS Caremark members currently use Walmart solely to fill their prescriptions. The company said that more than 63,000 other pharmacies remain in its national pharmacy network.
"As CVS Caremark begins to prepare clients and members for a transition, we are hopeful that Walmart will agree to work amicably with us in the best interest of patients," Rice said. “CVS Caremark's priority is to ensure that patients continue to have access to their medications during this transition period. We also remain open to continuing timely good faith negotiations with Walmart in the hopes of reaching an agreement to provide quality pharmacy care at a reasonable cost."
Update: Walmart is calling off its plan to exit some of CVS Caremark’s retail pharmacy networks after the two companies returned to the table.