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DoD: Walgreens letters could cause confusion

Letters sent to Tricare patients from Walgreens regarding the pharmacy’s contract dispute with Tricare’s prescription drug management company are causing confusion among military families and retirees, Defense Department officials and support organizations said Thursday.

Tricare patients who fill prescriptions at Walgreens received letters earlier this month spelling out details of the company’s dispute with pharmacy management company Express Scripts, Inc.

Walgreens, the nation’s largest retail pharmacy chain, walked away from negotiations with Express Scripts in June, citing differences over reimbursement rates and contract terms.

The letters leave the impression that Tricare itself is dropping Walgreens as a provider, says Joyce Raezer, executive director of the National Military Family Association.

Tricare beneficiaries perceive this “as a Tricare issue, and they feel like they are caught in the middle,” Raezer said during a Pentagon teleconference.

Tricare is not involved in the negotiations, said Rear Adm. Christine Hunter, deputy director of the Tricare Management Agency. She said her agency has received calls from concerned health care providers and wants patients to understand they have time to switch prescriptions, if it becomes necessary, and explore other options if they currently use Walgreens.

“There are 56,000 other pharmacies [in our network] where they can obtain prescriptions. They also have mail order and home delivery,” Hunter said.

The letter campaign is part of Walgreen’s plans to disassociate from Express Scripts, the contractor that manages Tricare’s pharmacy program, by the end of the year. The company in July said it won’t sign the proposed contract because it believes Express Scripts’ reimbursement rates fall below market rates, and the proposal gives Express Scripts an unfair advantage in future decisions.

Express Scripts says Walgreens’ payment rates are higher than industry standards and it believes the retail drug company should be more competitive.

Walgreens has offered to separate its Tricare proposal from the rest of its commercial business with Express Scripts to continue serving military beneficiaries, a Walgreens spokesman said.

But negotiations remain at a standstill.

If no agreement is reached, Walgreens will leave the Tricare pharmacy network as of Jan. 1.

The two companies were involved in a similar dispute in 2008; they reached an agreement before the year-end deadline.

Hunter said one in 10 Tricare customers has filled a prescription at Walgreens.