Delaware and Walgreens strike tentative medicaid deal

After months of negotiations, Delaware medicaid clients may not have to say goodbye to their Walgreens pharmacist after all.

After months of negotiations, Delaware medicaid clients may not have to say goodbye to their Walgreens pharmacist after all.

In an effort to save the state $500,000 Delaware’s Department of Health and Social Services announced in June it would reduce the reimbursement rate for brand name drugs. So, Walgreens said it would not longer fill medicaid prescriptions.

But now Walgreens has agreed to a compromise which still reduces the reimbursement rate, but not as high as the original proposal.

To make up the difference there will be more low cost generic drugs put into the mix so the state can still achieve a $500,000.

DHSS Secretary Rita Landgraff says it was important to come to a deal since as of May nearly half of Delaware’s medicaid clients used Walgreens’ 62 Pharmacies in Delaware.

Listen:
[audio: /delaware/090811sawalgreens.mp3]

But the deal hinges on two trade associations dropping their lawsuits against the State of Delaware.

 Landgraff says state attorneys along with lawyers representing the National Association of Chain Drugstores and the National Community Pharmacists Association are talking about the proposal.

The new structure would also apply to the other 104 pharmacies in Delaware that accept medicaid including ACME, Shop-Rite and Rite Aid.

Landgraff says she hopes to hear from the trade organizations this week so plans can be made to have the new structure can be in place by September 15.