Walgreens Calls on Calif. Legislature to Restore WC Rate Cuts

February 4, 2004

Walgreens said it is calling on the California state legislature to restore cuts to workers’ compensation reimbursement to acceptable levels, as currently reflected in Senate Bill X4-10. If action isn’t taken within 30 days, Walgreens will require cash payment from patients for workers’ compensation prescriptions.

“The state must understand the urgency of resolving the workers’ compensation issue,” said Walgreens Chairman Dave Bernauer.

California’s current workers’ compensation rates that took effect Jan. 1 are among the lowest in the country. “Today’s payments from the state no longer cover our costs of the considerable expenses of processing workers’ compensation claims,” said Bernauer. “That’s why we urge the Governor and the legislature to work together to address this serious issue.”

If Walgreens is forced to stop processing workers’ compensation claims next month, injured workers will need to pay the normal retail price and file with their employer or insurance company for reimbursement. “We hope we can avoid this inconvenience for our patients,” said Bernauer.

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