90-day supply program to improve overall healthcare

Walgreens (NYSE:WAG)(NASDAQ:WAG) today launched a broad initiative for 90-day prescriptions that promotes delivery of maintenance and chronic care medication through its national network of more than 7,000 community pharmacies and employer worksite centers. As part of this program, Walgreens pharmacists will work with patients, physicians, insurers, employers and managed care organizations to implement a comprehensive 90-day at retail prescription program for maintenance medications including, where appropriate, the conversion of traditional 30-day chronic care prescriptions into 90-day prescriptions.

Today, many pharmacy benefit plans allow for a 90-day supply of certain medications from local community pharmacies, but many employers and other payors are not taking full advantage of this benefit. Other benefit plans penalize patients financially if they seek to fill prescriptions from their local pharmacy, and certain patients are often required to use only mail order programs. Patients want choice, and Walgreens 90-day at retail provides cost-effective access to medications where patients prefer to receive their prescriptions.

“Studies conducted by a range of health care professionals show that adherence to medications – one of the most critical components of any health care program – significantly increases through face-to-face interaction with trusted health care professionals like pharmacists,” said Greg Wasson, Walgreens President and CEO. “In fact, for many chronic care conditions, Walgreens has seen an approximately 15 percent increase in adherence to medications for patients receiving a 90-day retail prescription versus those receiving a 30-day supply.

“As a provider of community-based pharmacy and health and wellness services, we can positively impact adherence by encouraging our patients to receive a 90-day supply for their chronic medications. This program will lead to improved outcomes for patients and payors. With 25,000 highly-trained pharmacists in more than 7,000 locations across the country, Walgreens is uniquely positioned to deliver the counseling and coaching needed to ensure patients properly take their prescription medications.

“It is worth noting we have already seen significant success with 90-day at retail utilization in targeted Walgreens programs. Taking into account that each 90-day prescription fill equals three times the volume of a 30-day fill, more than 24 percent of our Medicare Part D beneficiaries’ prescription volume and 47 percent of our Prescription Savings Club members’ prescription volume are filled as 90-day supplies at our retail pharmacies. Based on that experience, we are confident this program will be extremely well received.”

Many insurers and managed care organizations offer a 90-day retail benefit at a lower cost than the traditional 30-day retail prescriptions, realizing that increased adherence reduces overall health plan costs.

In fact, Walgreens consumer research indicates that patients prefer to use their local pharmacy for prescriptions, due in part to the opportunity to consult with a trained community pharmacist to answer questions and obtain support for managing their condition. Obtaining a 90-day supply at a conveniently located pharmacy encourages improved adherence to medication therapy, consistent interactions with a trusted and informed pharmacist and better health outcomes.

Stanley B. Blaylock, President of Walgreens Health Services, said, “Reducing costs, while at the same time providing better outcomes, is job No. 1 in health care today. Walgreens is currently in many meaningful discussions with insurers and managed care companies about the cost-saving benefits inherent in our program. We encourage insurers and managed care companies to extend this 90-day at retail benefit to their members and pass on the savings through reduced co-pays. Many are already doing so and we applaud them. We know that a 90-day supply program combined with access to local community pharmacist care can greatly improve overall health spend and help patients manage their own costs and care.”