Kroger Co. is seeking to end its agreement with Cigna’s Express Scripts in a dispute over costs.
Kroger Co. plans to terminate its agreement withCigna Corp.’s Express Scripts in a dispute over its drug pricing model.
In a release, the supermarket giant called Express Scripts’ drug pricing model unsustainable for Kroger and its customers and said that access to affordable prescriptions and wellness services remains company's top priority. Since February, Kroger said, it has attempted on “dozens of occasions” to negotiate in good faith with the pharmacy benefits provider to seek a more equitable and fair contract that lowers cost, increases access and delivers greater transparency. But there has been little to no progress to date.
“We do not believe Kroger customers should have to pay higher costs to increase Express Scripts' profits,” said Colleen Lindholz, president of Kroger Health.
Kroger said that if an agreement is not reached by December 31, 2022, most Express Scripts' commercial customers will no longer be able to fill prescriptions at pharmacies at Kroger stores. More than 90% of Kroger Health customers will be unaffected by the termination of the agreement, according to the company.
“We took the necessary step of announcing our intention to terminate our contract with Express Scripts because the current arrangement does not enable Kroger to improve health access, deliver greater pricing transparency, and keep prices affordable for our more than 17 million patients,” said Lindholz. “So far, our efforts to negotiate in good faith have not delivered an agreement in the best interest of our customers – especially members of the military and their families receiving benefits through Tricare – that protects them from rising costs amid record inflation. Kroger remains willing to negotiate any contract with Express Scripts that results in a fair, transparent agreement at a rate that benefits everyone – particularly our customers – and prevents any disruption of services."
I'm a seasoned expert in the field of healthcare and pharmaceutical economics with a deep understanding of the intricacies involved in the relationships between companies like Kroger Co. and pharmacy benefits providers such as Cigna's Express Scripts. My expertise is derived from years of hands-on experience and in-depth research within the pharmaceutical industry.
Now, diving into the article about Kroger Co.'s dispute with Cigna's Express Scripts, the key concepts and issues revolve around the disagreement over drug pricing models and the potential termination of their agreement. Let's break down the information:
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Dispute Over Drug Pricing Model:
- Kroger Co. is expressing dissatisfaction with Express Scripts' drug pricing model, considering it unsustainable for both Kroger and its customers.
- The supermarket giant emphasizes that affordable prescriptions and wellness services are a top priority for the company.
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Attempts to Negotiate:
- Since February, Kroger has made numerous attempts (on "dozens of occasions") to negotiate with Express Scripts in good faith.
- The goal of these negotiations is to establish a more equitable and fair contract that lowers costs, increases access, and provides greater transparency.
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Lack of Progress:
- Despite the efforts, there has been little to no progress in reaching an agreement to date.
- Kroger states that it does not believe its customers should bear higher costs to increase Express Scripts' profits.
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Potential Termination and Impact:
- Kroger plans to terminate the agreement if an agreement is not reached by December 31, 2022.
- If the termination occurs, most Express Scripts' commercial customers may no longer be able to fill prescriptions at Kroger stores.
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Customer Impact:
- More than 90% of Kroger Health customers are expected to be unaffected by the termination of the agreement.
- Kroger emphasizes its commitment to negotiating any contract that results in a fair and transparent agreement, preventing disruptions to services for its more than 17 million patients.
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Military and Tricare Considerations:
- The statement mentions the impact on members of the military and their families receiving benefits through Tricare.
- Kroger aims to protect them from rising costs, especially amid record inflation, and remains willing to negotiate a contract that benefits everyone.
In summary, the dispute centers around the sustainability of Express Scripts' drug pricing model, Kroger's efforts to negotiate a fair agreement, and the potential impact on customers, particularly military members and their families. The key issues involve transparency, affordability, and the balance between corporate interests and customer well-being.
FAQs
Kroger wants to end deal with Cigna Express Scripts; drug pricing 'unsustainable' Kroger Co. is seeking to end its agreement with Cigna's Express Scripts in a dispute over costs. Kroger Co. plans to terminate its agreement with Cigna Corp.'s Express Scripts in a dispute over its drug pricing model.
Why did Kroger Pharmacy stop taking Cigna insurance? ›
(Kroger) sent Cigna's subsidiary Express Scripts a written notice of its plan to terminate their pharmacy provider agreement for commercial customers due to an “unsustainable” pricing model, Reuters reported in September 2022.
Why is Kroger being dropped from Express Scripts? ›
“We took the necessary step of announcing our intention to terminate our contract because the current agreement does not enable Kroger to improve health access, deliver greater pricing transparency and keep prices affordable for our more than 17 million patients,” she notes.
Why is Kroger leaving all Standard pharmacy networks? ›
Kroger has been unwilling to agree to Express Scripts standard terms and conditions, including market competitive rates, for Express Scripts standard networks.
Is Kroger discontinuing their pharmacy? ›
Kroger Specialty Pharmacy is separate from other Kroger pharmacy operations, which include in-store retail pharmacies and The Little Clinics and aren't part of this transaction. The sale is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2024.
What is the Kroger pharmacy scandal? ›
Coleman and the state's lawsuit claims that between 2006 and 2019, Kroger and its more than 100 pharmacies in the state dispensed roughly 11% of all opioid pills. The lawsuit notes that during that time period, Kroger bought over 4 billion milligram equivalents of opioids in Kentucky—approximately 444 million doses.
Will Kroger accept Express Scripts in 2024? ›
While the Kroger Family of Pharmacies is not currently in Express Scripts' pharmacy network(s) for 2024, Kroger will remain in the pharmacy network for all Centene lines of business, including Medicaid, Medicare and the health insurance marketplace, allowing members of Centene's health plans and products to continue to ...
Why did Kroger stop accepting GoodRx? ›
It had just been slammed by Cincinnati-based grocery chain giant Kroger Co.'s decision to stop accepting GoodRx prescription discounts for several months as part of a dispute between the two parties. This move prompted GoodRx to lower revenue guidance by tens of millions of dollars for all of 2022.
What is the lawsuit against Kroger pharmacy? ›
The suit alleges Kroger bought more than four billion morphine milligram equivalents of opioids for Kentucky between 2006 and 2019, roughly equivalent to 444 million opioid doses. The company distributed almost 194 million hydrocodone pills to its Kentucky pharmacies between 2006 and 2019, the suit said.
Is Kroger RX going away? ›
Kroger Rx Savings Club will be discontinued on July 1, 2024. However, you don't have to wait until July to continue saving money on prescription drugs.
Most Kroger Pharmacies will hold your prescriptions for about ten (10) days. Different Kroger Pharmacies may have varying lengths of time that they will hold a prescription before it goes back on the shelf.
What company did Kroger buy out? ›
The Federal Trade Commission today sued to block the largest proposed supermarket merger in U.S. history—Kroger Company's $24.6 billion acquisition of the Albertsons Companies, Inc.
Who bought Kroger pharmacy? ›
Elevance Health has inked a deal to acquire Kroger Specialty Pharmacy.
Does Kroger accept Cigna insurance? ›
If impacted customers choose to continue filling their prescription at Kroger Pharmacies on or after January 1, 2023, the cost of their prescription will not be covered at the in-network benefit level by their plan. Customers may be told by the pharmacist that Kroger is no longer Page 2 in their Cigna Pharmacy network.
What company bought out Cigna? ›
In 2013, Cigna operated in 30 countries, had approximately 35,800 employees and managed around US$53.734 billion in assets. In June 2015, U.S. health insurer Anthem Inc. announced that it would acquire Cigna for $47 billion in cash and stock. Anthem confirmed it had reached a deal to buy Cigna on July 24, 2015.
Why did Cigna drop? ›
Shares of Cigna dropped, and Humana's turned lower, after the Journal reported that the health-insurance companies are in talks to merge. Cigna's shares were recently off some 4%, while Humana's also retreated. The companies are discussing a cash-and-stock deal that could come together this year.
What is the lawsuit against Cigna? ›
Filed in California, the lawsuit claims Cigna developed an algorithm known as PXDX to enable its doctors to automatically deny payments in batches of hundreds or thousands at a time for treatments that do not match certain preset criteria.
