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Monday, March 15, 2010, 4:05pm PDT  |  Modified: Monday, March 15, 2010, 4:08pm

Walgreens: No new Medicaid prescriptions after April 16

Puget Sound Business Journal (Seattle)

Walgreens said it won’t fill any new Medicaid prescriptions for new patients after April 16 at any of its 121 pharmacies in Washington state.

The Deerfield, Ill. pharmacy company (NYSE: WAG) is blaming “continued reduction in reimbursement under the state’s (Medicaid) program.”

Pharmacists and drug companies across the state are reacting to cuts in reimbursements provided by the Department of Social and Health Services (DSHS) for Medicaid brand-name prescriptions. Walgreens said under the current payment structure, the state reimburses the company “below its cost to break even on nearly 95 percent of brand-name medications dispensed to Medicaid patients.” Walgreens said it tried to hammer out a deal with the state over the past month, but negotiations failed, although talks continue.

Continues @ Seattle.BizJounals.com

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Timing of their announcement is quite interesting.   Insurance and pharma have been playing us through other organizations.

The current HCR does not lead to government reimbursement.  It only leads to government subsidies to people.  I just hope there is a bit more scrutiny on the obscene cost of drugs.

-- Edited by Sanders on Thursday 18th of March 2010 09:58:00 AM