CVS and Walmart come to agreement after drug pricing battle
CVS Health and Walmart have reached a new, multiyear deal to continue their pharmacy business relationship. CVS announced the agreement Jan. 18, three days after the companies stated they would no longer be in the same network for filling prescription drugs after a pricing dispute.
Walmart dispenses drugs in approximately 4,700 locations, while CVS has more than 9,600 store locations. CVS Health’s pharmacy benefits manager, CVS Caremark, is one of the largest pharmacy services businesses, reaching roughly 93 million members.
“We are very pleased to have reached a mutually agreeable solution with Walmart. As a PBM, our top priority is to help our clients and consumers lower their pharmacy costs," Derica Rice, president of CVS Caremark, said in a statement. "This new agreement accomplishes our top priority and enables Walmart to continue participating in CVS Caremark's commercial and Managed Medicaid pharmacy networks and provides enhanced network stability for our clients and their members."
With the agreement set, CVS Caremark will continue its participation with nearly 68,000 pharmacies.
Walmart and CVS originally disputed drug pricing terms when trying to reach a new agreement, with Walmart demanding higher reimbursements, according to CVS Health.
The companies did not disclose the terms of the new contract.
“We are pleased to have reached fair and equitable terms with CVS Caremark that are in the best interest of our customers, and we are glad our CVS Caremark customers will be able to continue saving money and living better," Sean Slovenski, senior vice president of Walmart Health and Wellness, said in a statement.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."