Walgreen says drops CVS drug plans over price

Walgreen Co on Thursday said it will no longer provide prescription drugs for four prescription benefit plans managed by drugstore rival CVS Caremark Corp, in a conflict over payment rates.

Walgreens said that while it had received an improved rate from CVS Caremark for another plan it manages, CVS declined to provide the same solution for these four other plans.

“We can’t continue accepting reimbursement rates that are drastically below market, while offering patients needed special services such as 24-hour pharmacy access and drive-through pharmacies,” Walgreens said in a statement.

CVS could not immediately be reached for comment.

Walgreens said most of the affected members live in Illinois, Indiana, Michigan, Ohio and Wisconsin.

It said it hopes to continue negotiations with CVS over the plans.