Protecting Patients, Workers, and Communities
The conditions also require Walgreens to continue participating in Medi-Cal and Medicare, provide financial assistance programs for patients, and adhere to state staffing requirements. The chain must give 90 days’ notice before closing or selling any store and maintain a preferential hiring list for displaced workers.
Walgreens also agreed to make commercially reasonable efforts to honor retirement contributions and unemployment benefits tied to collective bargaining agreements.
A Walgreens spokesperson welcomed the resolution, noting that it underscores the company’s independence and the crucial role its pharmacists play nationwide.
Industry Power and PBM Concerns
The settlement shines a spotlight on the dominance of pharmacy benefit managers. While PBMs were originally designed to negotiate fair drug pricing, regulators argue they have morphed into powerful middlemen reaping oversized profits while squeezing out community pharmacies.
As the last major nationwide pharmacy chain not tied to a PBM giant, Walgreens’ independence was central to California’s enforcement action.
