Sept 30 (Reuters) – Grocery retailer Kroger Co (KR.N) mentioned on Friday it has despatched Cigna Corp’s (CI.N) subsidiary Categorical Scripts a written discover of its plan to terminate their pharmacy supplier settlement for business clients because of an “unsustainable” pricing mannequin.
Kroger mentioned it has made a number of makes an attempt since February to barter with the pharmacy profit supervisor for a “extra equitable and honest contract that lowers value, will increase entry, and delivers higher transparency, however there was little to no progress up to now”.
Kroger mentioned greater than 90% of Kroger Well being’s clients is not going to be affected by a termination of the deal, but when a brand new settlement just isn’t reached by Dec. 31, most Categorical Scripts’ business clients will not be capable of fill prescriptions at Kroger shops.
Cigna purchased Categorical Scripts in 2018 in a $54-billion deal, creating one of many greatest suppliers of pharmacy advantages and insurance coverage in the US.
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Reporting by Mrinalika Roy in Bengaluru; Modifying by Shailesh Kuber
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