Walgreens (NYSE:WAG) (Nasdaq:WAG) announced today that it will provide
more than 160,000 eligible employees with employer-sponsored health
insurance coverage in 2014 through its proprietary “Live Well Benefits
Store,” a marketplace that is an outsourced solution through Aon Hewitt
Corporate Health Exchange. The Walgreens program provides more health
coverage choices and an opportunity for most employees to lower their
out-of-pocket health care costs next year.
In addition, the new program allows Walgreens to continue offering
health insurance and wellness benefits to its employees as the plan
administrator, while providing tools and resources that help employees
personalize coverage for themselves and their dependents. The plan
members will also continue receiving access to Walgreens Healthcare
Clinics for a $5 co-pay.
“Under this new program, employees will have expanded choices to
personalize their health care coverage in a competitive environment,
giving our diverse workforce the flexibility they need to meet their
health care needs,” said Kathleen Wilson-Thompson, Walgreens senior vice
president and chief human resources officer. “We will continue to invest
in the health of our employees and their dependents while using a
marketplace solution that offers a wide variety of plan options that
meet the affordability standard of the Patient Protection and Affordable
Care Act.”
The new program also continues Walgreens value-based pharmacy benefit
for employees, which excludes prescriptions from plan deductibles. “Our
experience has been that this approach to pharmacy benefit design is the
best way to improve medication adherence and lower overall health care
costs,” said Kermit Crawford, Walgreens president of pharmacy, health
and wellness.
Walgreens anticipates that many of its retirees who are under age 65 and
are eligible for company health care benefits will see reductions in
their health care premiums and more plan options as well.
Medicare-eligible retirees will see no changes in 2014.
The new program also provides an opportunity for Walgreen retirees who
weren’t previously eligible for health care benefits to participate in
affordable plan options through the “Live Well Benefits Store.”
Working with Aon Hewitt, the Walgreens marketplace will offer a wide
array of benefit options and carriers for medical, dental, vision,
pharmacy and other benefits coverage in 2014. Walgreens contribution
toward the cost of health care benefits will be at the same level as it
was the previous year, with employees choosing a health care plan that
is personalized to their own individual and family needs. Plan options
include three high-deductible health plans, a PPO and an HMO-style plan.
With up to five carriers in each of the country’s 21 geographic regions,
the range of pricing for premiums can be as low as $5 a month or less,
depending on the region. These options can be particularly attractive to
the 36 percent of employees who are single and under age 30.
“With continued investment in wellness programs that are an effective
means of improving personal health, we are assisting our team members
and their families to control the cost of insurance premiums in future
years,” said Wilson-Thompson. “Our Walgreens ‘Well Informed’ wellness
program, launched in 2010, paid team members approximately $35 million
in the last year in incentives and rewards for participation in health
risk questionnaires, biometric screenings, healthy activities and
tobacco-free counseling services, among other programs.”
Helen Darling, president of the National Business Group on Health, said,
“Walgreens is moving down a path that shows a commitment to its
employees and the desire to offer competitive, cost-effective, flexible
benefit choices. Marketplaces similar to Aon Hewitt, while new for
active employees in the employer space, offer opportunities to drive
more consumerism and consumer engagement. Keeping prescription drugs
from the plan deductible is innovative and could help control costs and
buy more health, not just buy more health care.”
About Walgreens
As the nation's largest drugstore chain with fiscal 2012 sales of $72
billion, Walgreens (www.walgreens.com)
vision is to become America’s first choice for health and daily living.
Each day, Walgreens provides more than 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. The company operates 8,117 drugstores in all 50 states, the
District of Columbia and Puerto Rico. 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.
Cautionary Note Regarding Forward-looking Statements: Statements in
this press release that are not historical are forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Words such as “expect,”
“likely,” “outlook,” “forecast,” “would,” “could,” “should,” “can,”
“will,” “project,” “intend,” “plan,” “continue,” “sustain,” “synergy,”
”on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,”
”possible,” “assume,” variations of such words and similar expressions
are intended to identify such forward-looking statements. These
statements are not guarantees of future performance and are subject to
risks, uncertainties and assumptions that could cause actual results to
vary materially from those indicated, including those impacting the
cost, coverage and utilization of health insurance by eligible
participants and the factors described in Item 1A (Risk Factors) of
Walgreens most recent Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, each of which is incorporated herein by reference and in
other documents that Walgreens files or furnishes with the Securities
and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except to the
extent required by law, Walgreens does not undertake, and expressly
disclaims, any duty or obligation to update publicly any forward-looking
statement after the date of this report, whether as a result of new
information, future events, changes in assumptions or otherwise.
Copyright Business Wire 2013