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Mar
30

Workers comp pharmacy news roundup

The NCPDP meeting in Phoenix last week was more than just a few days sunning, golfing and dining. For those occupying the narrow-but-deep workers compensation niche, it was quite instructive. For example…
Kroger continues its anti-PBM stance; refusing to contract with any PBMs for workers compensation, instead choosing to send all their comp scripts to a third party biller. And as long as workers comp payers allow or enable their injured workers to get their scripts filled at Kroger stores, this problem will continue. Why? Because Kroger does not believe any comp payer can influence their comp script volume.
WorkingRx may be in trouble. The Albertson’s deal will likely result in WorkingRx losing its marquee customer (Albertson’s owns Sav-on and Osco’s, which are being sold to CVS), and therefore much of its clout with comp payers. This being the case, several PBMs and payers are scratching their heads over recent announcements that some comp PBMs are doing deals with WorkingRx…
Walgreen’s will not contract with any workers comp PBM or insurer for less than AWP-10%. That’s their public stance, and it appears to be consistent with their private contract negotiations as well.
Meanwhile, several payers have been in conversations with Third Party Solutions in a quest to find some way for payers, PBMs, and third party billers to work together. So far, TPS has been more “reasonable” than the other third party biller(s), but the inherent conflicts in business models and motivations are proving to be rather difficult to overcome.
A follow up from the ScripNet – WorkingRx court case – the transcript contains a potentially significant statement by WorkingRx’s attorney. When questioned by the judge abouit the surcharge placed on each script by WorkingRx, the lawyer admitted that WorkingRx’s right to reimbursement (and I’m paraphrasing here) was not any different from that of the retail pharmacies, and thus any surcharge was not reimburseable.
Finally, in a completely unrelated note, there is news out of California that legislative efforts to address the really significant issue of drug repackaging appear to be progressing.
And that’s today’s potpourri of drug talk.


One thought on “Workers comp pharmacy news roundup”

  1. Does anyone have an update on whether or not Kroger has decided to participate in any workers compensation pharmacy networks?

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Joe Paduda is the principal of Health Strategy Associates

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