business news in context, analysis with attitude

Bloomberg News reports that CVS Caremark has filed a lawsuit against Walgreen, charging that its rival has decided to cancel prescription contracts for some 70,000 people who are covered by plans operated by CVS.

As reported by Bloomberg, CVS “bought the drug prescription plan administrator Caremark RX in March and last year acquired health clinics to better compete with Walgreen, (which) also administers drug plans under its Health Initiatives program.”

Walgreen said it is canceling the contracts because CVS unilaterally reduced the payments it has been making to Walgreen under the plan.

KC's View:
This is what it scary about chain drug stores having this kind of power over prescription contracts. There are 70,000 people out there who may not get their prescriptions paid for while these two argue about dollars and cents.