RiteAid and FirstScript at Odds

Thursday, May 28, 2009 | 0

By Joe Paduda

I had a chance to speak with the PR folks from RiteAid (Wednesday) morning, who were responding to my request for additional information about RiteAid's decision to terminate its relationship with work comp PBM FirstScript.

RiteAid is still participating with other work comp PBMs, just not with FirstScript. Sources also indicate that California-based work comp PBM WorkComp Rx has also been terminated by RiteAid for the same reason - processing comp scripts through group health contracts.

As this is a contracting matter, RiteAid will not comment on it publicly, and I won't characterize my conversation with their corporate PR staff.

However, other internal sources have confirmed that RiteAid has terminated its relationship with FirstScript. And I'm also hearing that FirstScript has told at least some of their payer customers that they should have their claimants start using other pharmacy chains. FS is obviously doing this in an effort to force RiteAid back into their network; by threatening to pull customers out of stores, FS is trying to hit the big retailer where it hurts most.

Other PBMs are watching very, very closely - as are other retail chains. If RiteAid backs down (which to date it has shown no intention of doing) expect other PBMs to start using group health contracts to process work comp scripts. If they hold firm, and if other chains follow their lead rather than seeking to benefit from RiteAid's principled position, order will be restored to the market, rule-abiding PBMs will no longer be penalized, and rule-ignoring PBMs will get their comeuppance.



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Joseph Paduda's blog, managedcarematters.com, focuses on managed care for group health, workers compensation, auto insurance, cost containment, health policy, health research, and medical news for insurers, employers, and health care providers. Paduda is the principal of Health Strategy Associates.
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