WEA Trust Demands that Others Compete.

This made me chuckle a little. 

In what could signal the start of a wider battle, Walgreen Co. has stopped filling prescriptions for about 100,000 people covered by four CVS Caremark Corp. benefit plans, outraging some people who say they are captives of a corporate strategy.

[...]

“This was a deliberate selection of hostages by Walgreens,” said Fred Evert, president of WEA Trust, which insures many Wisconsin public school employees and was cut off by Walgreens. “It wasn’t random.”

He said about 40,000 of his organization’s members must now find new pharmacies because they cannot use Walgreens.

“Walgreens never told us” of its plans to stop honoring CVS Caremark’s benefit plan, Evert said. He said he believed his group was chosen to lose its coverage in part because Walgreens faces little competition from CVS pharmacies in Wisconsin. CVS, a pharmacy chain and major competitor for Walgreens, acquired Caremark in the spring.

Sheesh, talk about your overheated rhetoric.  OH NO!  THEIR MEMBERS WILL HAVE TO USE A DIFFERENT PHARMACY!  THEY’RE HOSTAGES!!!

Give me a break.

But what’s more funny is that it’s WEA Trust who is decrying that the lack of competition for Walgreens is the reason that Walgreens gave them them the shaft.  This is the same WEA Trust that provides health coverage to the vast majority of Wisconsin public school teachers because the union contracts forbid the district from using a competitor.  This is the same WEA Trust that is owned by WEAC, the state teachers’ union.  You know, the teachers union that screams every time someone tries to introduce some competition into public education in the form of vouchers and such.  Do you think they get the irony? 

1. In 2005, our family could get prescriptions filled just about anywhere in our town - in 2006, the insurance company went to a pharmaceutical management company that required that all prescription refills (90 days) go through Express Scripts (via mail) - that worked out pretty well - by mid-year, we were pretty well established in their system so we were able to order refills on-line.  Then, for 2007, we were switched to IPS (mail order again) - we just finished getting established in their system for internet ordering - I think we will continue to have them through 2008.

   Just bringing a little of my personal “real world” experience to this topic.  I guess WEA doesn’t realize how far from reality they are.

   I did follow the link - I think what is key is that CVS (a competitor of Walgreen’s at the retail level) acquired Caremark (a pharmaceutical benefits manager).  So, now CVS is indirectly a “customer” of Walgreen’s but also has the purchasing authority to establish what price they choose to pay.  Walgreen’s claims that the price that is mandated by CVS is not high enough.  Sounds like the market in action - just like consumers can shop around for their best price, retailers can establish prices based on what they need to keep their business viable.

   Posted by on November 30, 2007 at 1149 hrs




2. CVS caremark is a monopoly to benefit CVS.  By lowering the prices that tthey pay competitors they reap profits from those competitors to beneift them.  They don’thave to worry about lowering the prices of their stores as it is the same company.
   Essentially they can screw their competitors by making them lose money, making Caremark make more money and CVS stores lose profitabiltiy so they pay less in managment bonuses to their employees cause they transfer rpofits from the stores to Caremark.
   Neat Huh?  Most of you will not understnad this charade but eventually the customers will change Rx plans and it will even out.

   Posted by on November 30, 2007 at 1753 hrs




3. Thanks, Mr. Donhal - when I read the articles, to me it seemed like Walgreens was getting shafted by CVS, not Walgreens shafting WEA.

   Posted by on November 30, 2007 at 1757 hrs




4. Walgreens and the other pharmaices are being shafted by CVS/Caremark.

   Posted by on November 30, 2007 at 1844 hrs




5. God, I hate WEAC so much.

   Posted by Recess Supervisor on November 30, 2007 at 2027 hrs




6. CVS - CAREMARK are CORPORATE BANDITS WHO FORCED WALGREENS TO OPT OUT _ I WILL NEVER SHOP AT CVS AND IWILL SPREAD THE WORD THAT NO ONE SHOULD _ LIVE LONG AND PROSPER WALGREENS

   Posted by on December 09, 2007 at 2259 hrs