Walmart, CVS Reveal New PBM Pharmacy Network Agreement
Days after a pricing dispute led to a public parting of the ways, Walmart Inc. and CVS Health have reached a multiyear agreement under which the mega-retailer will continue to take part in the CVS Caremark pharmacy benefit management (PBM) commercial and Managed Medicaid retail pharmacy networks. The companies declined to disclose the financial 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,” said Sean Slovenski, SVP, Walmart Health and Wellness. “We believe in putting our customers first by providing value and keeping our everyday low-price promise.”
Also expressing satisfaction at reaching “a mutually agreeable solution with Walmart, Derica Rice, president, CVS Caremark, the PBM business of Woonsocket, R.I.-based CVS Health, noted: “As a PBM, our top priority is to help our clients and consumers lower their pharmacy costs. 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 Walmart’s continuing participation, the CVS Caremark national pharmacy network has almost 68,000 participating pharmacies for members to choose from, including independently owned, community-based pharmacies, and other local pharmacies in grocery stores and mass merchants, along with regional and national drug store chains.
Walmart and CVS Health already have an existing agreement regarding the big-box retailer’s participation in the CVS Caremark Medicare Part D pharmacy network, and Walmart's Sam’s Club division remains part of the CVS Caremark pharmacy networks.
Bentonville, Ark.-based Walmart operates more than 11,200 stores under 55 banners in 27 countries and ecommerce websites. More than 4,700 of its U.S. locations across urban, rural and suburban areas have pharmacies. The company is No. 1 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.