CVS Announces It Will No Longer Participate in Midwest Health Plan; Company Takes a Stand against Plan's Unreasonably Low Reimbursement Rates
WOONSOCKET, R.I.--(BUSINESS WIRE)--July 18, 2006--CVS/pharmacy (NYSE: CVS), America's largest retail pharmacy, announced today that it will no longer participate in the Midwest Health Plan pharmacy network, effective August 16, 2006. As of that date, CVS will stop filling prescriptions for members of Midwest Health Plan due to the Plan's inadequate pharmacy reimbursement rates.
Midwest Health Plan is located in Dearborn, Michigan and provides services in Macomb, Oakland, Washtenaw and Wayne counties for more than 50,000 members.
CVS has been in discussions with Midwest Health Plan's pharmacy benefit management company, 4-D, for several months regarding the Plan's unacceptable reimbursement rates. CVS management worked diligently to propose reimbursement solutions that take into account the costs associated with providing patients with quality pharmacy services.
"While we sincerely regret any disruption this may cause our customers, we feel strongly that we cannot sacrifice the quality of our pharmacy services to meet the unreasonably low reimbursement rates implemented for this plan," said Tom Morrison, Vice President of Managed Care at CVS/pharmacy. "As much as we have tried to negotiate a reasonable solution, it has reached the point with the Midwest Health Plan that continuing participation no longer makes economic sense."