Express Scripts: Time Running Low For Members, But There May Be A Silver Lining

Walgreens Co., (of which one store can be found on virtually every street corner) is expecting to dissolve its association with Express Scripts Inc. On January 1st, 2012. What does that mean for you? Probably nothing. Unless of course you’re a member of Express Scripts, in which case 90% of you will no longer have the ultra-convenient option of filling your prescriptions at your local Walgreens.

Walgreens has admitted that the break-up with Express Scripts will hurt their sales, nothing that the latter processed approximately 88 million prescriptions filled by Walgreens in 2011. To put the impact in context, these prescriptions represent about $5.3 billion out of a total $72.18 billion in fiscal sales.

Here’s how it works: Express Scripts pays Walgreens to fill prescriptions for them. However, there’s no love lost between the two companies, as both have professed a desire since June to allow the business relationship to expire once the three year contract is up. Walgreens would rather take the financial hit than continue to fill such a high volume of generally unprofitable prescriptions. Though most Express Scripts members won’t be able to get their meds from Walgreens anymore, Walgreens has said that it will try to keep as many members serviced as possible by working out their own arrangements with with companies and health plans. The company believes that most businesses will want to keep the store in their networks.

Though Walgreens will attempt cutting costs in order to counteract the lost revenue from Express Scripts, they admit that the won’t be able to cut close enough to balance their coming losses. If Express Scripts is able to acquire Medco Health Solutions Inc. (a plan that has been in the works), Walgreens may end up losing more business, and possibly consider *gasp* cutting prices.

Bad news for Walgreens, but good news for all of us!

Are you an Express Scripts member? Think this will affect you? If not, are you looking forward to lower prices at your local drugstore? Sound off down below.