DEERFIELD, Ill., February 24, 2012 - One year after launching a national awareness campaign focused on the benefits of 90-day prescription refills at retail pharmacies, Walgreens (NYSE: WAG)(NASDAQ: WAG) today released new data supporting the success of the 90-day refill program and its over-arching benefits to patients and payers.
The 90-day retail initiative, launched in January 2011, focuses on informing eligible patients of the option to receive 90-day medication supplies from their neighborhood Walgreens retail pharmacy, and encourages prescription plan administrators to offer this choice to their members.
Walgreens developed the campaign to heighten awareness of 90-day retail options, citing a prior lack of awareness (58 percent1) among patients as a primary barrier to greater adoption of 90-day prescriptions.
“We know that the 90-day retail option can be effective in helping to reduce overall health care costs and improve patient outcomes through better medication adherence,” said Kermit Crawford, Walgreens president of pharmacy health and wellness services and solutions. “Medication non-adherence is one of the biggest hurdles in treating illness today. In addition to working with patients and payers to drive cost savings, our 90-day retail offerings have fostered deep and trusted relationships with our pharmacists and given patients greater convenience, resulting in 15 percent greater adherence versus 30-day.”
The key data underscoring the initiative’s success to date includes:
- An increase of more than 30 percent in 90-day retail prescription volume2 with more than 150 million adjusted 90-day prescriptions filled during calendar year 2011
- Increases in Walgreens 90-day retail market share – including year-over-year growth from 17.6 percent to more than 20.3 percent in December
- An industry-leading awareness level of customers knowledgeable of the 90-day retail option -- more than 8 percentage points higher than the competition
The Value of 90-Day Retail
Walgreens also today issued a new white paper, “The Value of 90-Day Retail,” further analyzing the benefits of 90-day prescription refills at retail pharmacies, including those the company’s clients and partners have recognized through the recent addition of this option to their benefits plans.
The paper examines how combining 90-day retail refills with the more common 30-day retail and 90-day mail options can help achieve cost savings, improved medication adherence and patient outcomes, as well as higher member satisfaction. The paper also unveils data refuting common misconceptions around 90-day retail options, such as the belief that savings generated would be negated by mail order cannibalization or that it increases medication waste.
Highlights of the data supporting the addition of a 90-day retail program include:
- Cost savings: Seven percent savings for 90-day prescriptions, compared to three 30-day fills, driven by improved generic utilization and lower dispensing fees
- Improved adherence: A 15 percent increase in medication adherence through 90-day retail compared to 30-day
- Higher member satisfaction: Patients have a choice where their prescriptions are filled and can maintain a personal relationship with their pharmacist – 85 percent of patients value this face-to-face interaction and report higher satisfaction levels as a result
The white paper also features a new case study outlining how a mid-sized pharmacy benefit manager (PBM) client has realized more than $43 million in cost savings, driven by an 18 percent increase in total 90-day penetration – just 18 months after adopting a 90-day retail offering.
“Today’s health care landscape continues to evolve, along with the growing needs of payers and health plans, and there is strong evidence supporting the benefits of adding a 90-day retail option,” said Jeffrey Berkowitz, Walgreens senior vice president of pharmaceutical development and market access. “While some are focused on reducing choice and convenience for members, we believe programs like 90-day retail, which offer much greater options, can be a key driver in maximizing member benefits and savings. Walgreens is driving greater consumer awareness, and with innovative technology and convenient nationwide access, we’re uniquely positioned to help bring this offering to other health care groups.”
“The Value of 90-Day Retail” white paper can be accessed at: http://www.walgreenshealth.com/pdf/misc/90dayWhitePaper.pdf
1 Walgreens 90-Day at Retail Positioning and Pricing Study: May 2010
2 Calendar Year (CY) 2011 90-day retail prescription volume = 153.5M; CY 2010 90-day retail prescription volume = 116.7M.
About Walgreens
Walgreens (www.walgreens.com) is the nation's largest drugstore chain with fiscal 2011 sales of $72 billion. The company operates 7,830 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health and wellness centers and in-store convenient care clinics, with more than 700 locations throughout the country.
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Walgreens
Jim Cohn, 847-315-2950
http://news.walgreens.com