Walgreens Drops Insurance Plan as State Considers Picking it Up

Customers who enrolled in Express Scripts, Inc. won’t be covered at Walgreens Pharmacy next year, a move that could have implications for state workers in Maryland.

The state’s budget office was planning to award a $2.3 million contract to Express Scripts, at a substantial savings over its closest bidding competitor, according to the Baltimore Sun. But a vote on the contract has been deferred as the current provider, Catalyst Health Solutions, Inc. appeals the award.

After failed contract negotiations, Walgreens Pharmacy announced Tuesday that beginning Jan. 1, 2012, it will no longer accept Express Scripts coverage, stating in a press release:

As the largest retail provider in their pharmacy network, we were surprised by Express Scripts’ ultimate stance during our talks, which made it clear to us that they no longer had an interest in continuing a meaningful relationship. 

Before this, there had been other concerns with Express Scripts. 

The Sun reported that in 2008 the company paid more than $9 million to Maryland and 28 other states to settle complaints after it was accused of encouraging doctors to have patients switch their brand of cholesterol drug.

In 2004 Express Scripts was accused of keeping about $100 million of drug rebate money that was owed to the state of New York. The company did not admit fault, but joined in a $27 million settlement with other insurance companies. 

There are five Walgreens Pharmacies within five miles of Ellicott City: 

6323 Baltimore National Pike in Catonsville

5657 Baltimore National Pike in Catonsville

5585 Twin Knolls Road in Columbia

2204 Rolling Road in Baltimore