Pharmacy Insurance Battle Affects Many Wisconsin Teachers
Walgreens Officials Say They're Getting Paid Below Typical Rates
Updated: 12:49 pm CST November 13, 2007
MADISON, Wis. -- Tens of thousands of public schools employees in the state might not be able to refill a prescription at Walgreens on Tuesday.
VIDEO: Watch The ReportThis is because their insurer, WEA Trust, said it is being held hostage in a contract wage dispute between its pharmacy benefits manager and Walgreens.Madison-based insurer, WEA Trust, said its 140,000 members are innocent bystanders in a last-minute, high-stakes battle between its provider of pharmacy coverage and the nation's largest drug store chain, WISC-TV reported."I need to make sure I have immediate access to insulin," said WEA Trust employee Vaughn Vance. "I have about a half-hour window. If I can't get to where the vial's broken I can end up in the hospital."WEA Trust government relations director Vaughn Vance has been a diabetic for 27 years. He said that he relies on a steady supply of insulin delivered through a portable pump to maintain good blood sugar levels.For more than 20 years, he's also relied on Walgreens. But the contract battle between the drug store giant and the pharmacy benefits manager is forcing people like him to switch to other pharmacies, like Target, to maintain service.WEA Trust officials said the battle includes three other Midwest companies.In a letter, Walgreens told WEA Trust and the other companies that, "CVS Caremark is trying to dictate below-market payments to Walgreens for your prescription plan."The letter goes on to say, "Effective as early as Nov. 13, Walgreens may no longer be able to fill prescriptions under the plan."Vance said that he's furious."I don't have any sympathy for companies that make millions of millions of dollars on prescription drugs, argue for more and then say, 'In the meantime, Vaughn Vance, or any other patient suffers the consequences as a bargaining chip.'" he said.WEA Trust CEO Fred Evert said that Walgreens has been demanding higher drug reimbursement rates. It reportedly terminated its contract with Caremark with only 10 days notice."They have chosen to put profits before people," said Evert. "They have held our members hostage on very short notice."Michael Polzin, a media relations spokesman for Walgreens, said that it had no choice."We have been negotiating a number of months to resolve this issue. Overall, we're getting paid well below what is typical and we can't continue at that rate," Polzin said.
VIDEO: Watch The ReportThis is because their insurer, WEA Trust, said it is being held hostage in a contract wage dispute between its pharmacy benefits manager and Walgreens.Madison-based insurer, WEA Trust, said its 140,000 members are innocent bystanders in a last-minute, high-stakes battle between its provider of pharmacy coverage and the nation's largest drug store chain, WISC-TV reported."I need to make sure I have immediate access to insulin," said WEA Trust employee Vaughn Vance. "I have about a half-hour window. If I can't get to where the vial's broken I can end up in the hospital."WEA Trust government relations director Vaughn Vance has been a diabetic for 27 years. He said that he relies on a steady supply of insulin delivered through a portable pump to maintain good blood sugar levels.For more than 20 years, he's also relied on Walgreens. But the contract battle between the drug store giant and the pharmacy benefits manager is forcing people like him to switch to other pharmacies, like Target, to maintain service.WEA Trust officials said the battle includes three other Midwest companies.In a letter, Walgreens told WEA Trust and the other companies that, "CVS Caremark is trying to dictate below-market payments to Walgreens for your prescription plan."The letter goes on to say, "Effective as early as Nov. 13, Walgreens may no longer be able to fill prescriptions under the plan."Vance said that he's furious."I don't have any sympathy for companies that make millions of millions of dollars on prescription drugs, argue for more and then say, 'In the meantime, Vaughn Vance, or any other patient suffers the consequences as a bargaining chip.'" he said.WEA Trust CEO Fred Evert said that Walgreens has been demanding higher drug reimbursement rates. It reportedly terminated its contract with Caremark with only 10 days notice."They have chosen to put profits before people," said Evert. "They have held our members hostage on very short notice."Michael Polzin, a media relations spokesman for Walgreens, said that it had no choice."We have been negotiating a number of months to resolve this issue. Overall, we're getting paid well below what is typical and we can't continue at that rate," Polzin said.Copyright 2007 by Channel 3000. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
