Kroger Health is hoping to agree on a more agreeable contract with health care company Express Scripts by the end of the year.
Kroger said on Friday it notified the company of its intention to terminate its pharmacy provider agreement for commercial customers.
Kroger said it had tried to negotiate a fair contract that will lower costs and increase access, but there has been little to no progress.
“Kroger is doing everything possible to deliver greater value for our customers and navigate this ongoing period of record inflation. We do not believe Kroger customers should have to pay higher costs to increase Express Scripts’ profits,” Colleen Lindholz, president of Kroger Health, said in a statement.
Kroger said it’s making the decision now because a new agreement would need to increase access while keeping prices affordable for patients while also making sure staff is fairly paid.
But the health care company’s proposal does not align with those goals.
What does this mean for customers? Kroger said more than 90% of Kroger Health customers will be unaffected by the termination of the agreement.
If a new agreement is not reached by Dec. 31, 2022, most Express Scripts commercial customers around the country will no longer be able to fill prescriptions at pharmacies within the Kroger Family of Companies.