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Latest NewsMay 30, 2023 The arbitration was based on Walgreens’ adoption of a policy and program rooted in 2008-2009 known as the Prescription Savings Club. Directed at patients without insurance coverage for the cost of their medication, the program enrolled patients for an annual fee with the result that they would receive discounts on Walgreens’ prices for their prescriptions. During the period in question the Walgreens-Humana contract specified that the insurer would reimburse the chain for its “usual and customary” prices. Walgreens sought advice from a national law firm, Crowell & Moring, LLP, when designing the program and entering into the contractual relationship. Fast forward nearly a decade when the law firm “sent Humana a ‘pitch’ document” with the argument that Walgreens was overcharging insurers by not seeking reimbursement for the lower Prescription Savings Club pricing. An arbitration claim resulted, and the chain eventually advanced a number of arguments regarding the impropriety of the outcome of the process with some positions tied to both the identity of the law firm as well as that of the arbitrator. An excellent distillation of the issues appears in an article by Ryan Boysen in “Law360”. [https://www.law360.com/articles/1680251/print?section=internationalarbitration]
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