Express Scripts’ customer Tricare won't return Walgreen to pharmacy network
Thursday, September 6, 2012, 2:16pm CDT
One of Express Scripts Holding Co.’s clients, Tricare, which provides medical benefits for U.S. military members and their families, will keep Walgreens stores out of its pharmacy network, although Walgreen Co. and Express Scripts resolved their contract dispute in July, according to Tricare’s website.
“In line with Tricare Management Activity’s commitment to the efficient management of the Tricare Pharmacy benefit, Walgreens will remain designated as a non-network pharmacy provider for Tricare beneficiaries,” Tricare’s website states.
Express Scripts processes prescriptions for Tricare.
Express Scripts and Walgreens announced July 19 that they reached a multiyear pharmacy network agreement, nearly seven months after their previous agreement expired. Walgreens stores will be part of the Express Scripts network effective Sept. 15.
Deerfield, Ill.-based Walgreen Co. (NYSE: WAG) had stopped filling prescriptions from St. Louis-based Express Scripts patients Dec. 31, after the two companies failed to agree on the terms of a new contract. Express Scripts filed suit in September 2011 in federal court in Illinois alleging Walgreen had published false marketing materials to lure Medicare recipients away from Express Scripts’ health plan clients. The two agreed in June to drop the suit.
Tricare represented about 18 percent of the prescriptions Walgreen had processed for Express Scripts, Walgreen has said, according to Reuters. Walgreen reported sales of $17.1 billion in its fourth quarter ended Aug. 31, down 5 percent from the prior-year quarter.
Express Scripts Holding Co. (NASDAQ: ESRX) reported net income of $170.9 million in its second quarter ended June 30, down 49 percent from the same quarter of 2011, mostly on expenses associated with its $29.1 billion acquisition of Medco Health Solutions, completed in April. The company’s revenue in the second quarter was $27.7 billion, a 144 percent increase from the same quarter a year ago. The pharmacy benefit manager, led by CEO George Paz, has 13,000 employees and reported revenue of $46.1 billion in 2011.