Walmart Splits With CVS After a Battle Over Prescription Costs
- Retailer sought higher reimbursement from CVS drug-benefit arm
- Walmart complains of ‘unregulated power’ of benefit managers
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Walmart Inc. pharmacies will no longer be part of the networks where most consumers with CVS Health Corp. drug plans can pick up their prescriptions, after a dispute between the two giant companies over pricing.
CVS is one of the largest administrators of prescription-drug plans in the U.S., covering more than 93 million people. While known mostly for its drugstores, CVS’s pharmacy-benefits management division, CVS Caremark, has come to account for most of its revenue. It administers drug coverage for many large employers as well as numerous Medicare and Medicaid beneficiaries.