IBJNews

Express Scripts, WellPoint in contract fight

Back to TopCommentsE-mailPrintBookmark and Share

Pharmacy benefits manager Express Scripts Inc. said Tuesday it is in the middle of a contract dispute with WellPoint Inc., one of the biggest health insurers in the United States.

Express Scripts said WellPoint has raised the possibility of filing a lawsuit, but it said the companies are negotiating, and Express Scripts believes the companies can resolve the dispute. It said WellPoint is disputing the implementation of some terms of the contract and "certain operational matters associated with Express Scripts' performance" under those terms. The contract between the companies went into effect on Dec. 1, 2009.

WellPoint, based in Indianapolis, operates Blue Cross Blue Shield plans in 14 states and provides health insurance for more than 34 million people, which makes it the nation's largest health insurer based on membership.

St. Louis-based Express Scripts has spent most of this year embroiled in a fight with Walgreen Co., the largest U.S. drugstore chain. A contract between Express Scripts and Walgreen expires at the end of 2011, and the companies have not been able to agree how much Express Scripts should pay Walgreen to fill prescriptions. If they do not agree to a new contract, most people whose prescription drugs plans are managed by Express Scripts won't be able to fill their prescriptions at Walgreen stores.

Express Scripts disclosed the dispute in a form filed with the Securities and Exchange Commission.

Shares of Express Scripts fell 2 percent, to $44.40 each, Tuesday and slipped another 3.6 percent, or $1.60, to $42.80, in after-hours trading. WellPoint stock declined 75 cents, to $64.64, and was unchanged in aftermarket trading.

ADVERTISEMENT

  • Walgreens arrogance
    To Reddog- I can't wait for that to happen! Walgreens has a terrible attitude and overcharge the customer that pays cash. They deserve the backlash/movement to CVS. If they weren't so pompous, many customers moving to the competition may wake them up (one day too late)-
  • RX fight
    Wow...how much can i get from them and how much can I get from them etc etc etc. Walgreen stands to lose a considerable amount of $$. In addition to buying the Rx customers buy other things. Now CVS will cash in and Walgreen management will, in a short time, say "what happened". Too late!

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

    2. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

    3. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

    4. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

    5. I live downtown Indy and had to be in downtown Chicago for a meeting. In other words, I am the target demographic for this train. It leaves at 6:00-- early but doable. Then I saw it takes 5+ hours. No way. I drove. I'm sure I paid 3 to 5 times as much once you factor in gas, parking, and tolls, but it was reimbursed so not a factor for me. Any business traveler is going to take the option that gets there quickly and reliably... and leisure travelers are going to take the option that has a good schedule and promotional prices (i.e., Megabus). Indy to Chicago is the right distance (too short to fly but takes several hours to drive) that this train could be extremely successful even without subsidies, if they could figure out how to have several frequencies (at least 3x/day) and make the trip in a reasonable amount of time. For those who have never lived on the east coast-- Amtrak is the #1 choice for NY-DC and NY-Boston. They have the Acela service, it runs almost every hour, and it takes you from downtown to downtown. It beats driving and flying hands down. It is too bad that we cannot build something like this in the midwest, at least to connect the bigger cities.

    ADVERTISEMENT