More than 55,000 Medicaid recipients in Michigan soon won't be able to fill their prescriptions at CVS drug stores.
CVS announced Monday it would stop filling prescriptions from Midwest Health Plan starting Aug. 16, because the drug store chain was unable to reach an agreement with the insurer over reimbursement rates.
The dispute comes less than a month after Walgreen Co. announced it would no longer accept prescriptions from the customers of the Dearborn-based insurance carrier.
"We tried really hard to reach a fair reimbursement rate," said Allen Kessler, Midwest vice president and chief financial officer. Midwest offered to pay more than the traditional Medicaid rate, but CVS refused the deal, he said.
CVS, with 200 locations in Metro Detroit, said Midwest's offer was unfair.
"We regret any disruption this may cause, but we cannot sacrifice the quality of services to meet unreasonably low reimbursement rates," CVS spokesman Mike DeAngelis said.
This is the second time this year CVS has cut off an insurer because of dispute over reimbursement rates. The chain also no longer accepts M-CARE, the University of Michigan-managed insurer covering more than 180,000 statewide.
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