Business group opposes inclusion of Walgreens in Vital pharmacy network

Elliot Pacheco Beauchamp, president of Entrepreneurs for Puerto Rico

By The Star Staff

Entrepreneurs for Puerto Rico (EPPR by its initials in Spanish), a nonprofit organization representing business leaders committed to the economic and social development of the island, opposed the possible inclusion of Walgreens in the pharmacy network Plan Vital, the government-sponsored health plan, and warned of “the contractual, regulatory, and public policy risks.”

EPPR President Elliot Pacheco Beauchamp noted that in the public hearings held as part of the of the government transition process during the first weeks of December, Health Secretary Carlos Mellado López and Puerto Rico Health Insurance Administration (ASES) Executive Director Roxanna Rosario Serrano confirmed that the current pharmacy network, which is made up of 943 pharmacies distributed throughout the island, adequately meets the needs of the Plan Vital beneficiaries.

“There is no documentation or justification required by contract that establishes that the pharmacy network is poorly served,” Pacheco Beauchamp said. “This network has been designed under strict local and federal standards, guaranteeing adequate and continuous access to health services for vulnerable beneficiaries of the Vital Plan.”

The businessman also shared EPPR’s main concerns regarding the possible inclusion of Walgreens as a pharmacy provider within the Vital Plan network.

He said the inclusion of Walgreens could violate current contracts because it would alter the contractual terms between ASES and the pharmacy benefits manager (PBM), Abarca Health, which would put the stability of the network at risk.

The Vital Plan network, Pacheco Beauchamp said, was designed to guarantee adequate and sustainable access, principles that could be compromised if providers are added without adequate justification and documentation, as stipulated in the current contract.

He also charged that Walgreens has faced multiple accusations of fraud, including a fine this past September for $106.8 million for violations to the False Claims Act in the Medicaid and Medicare programs. He said such a history of fraud and abuse represents a significant risk to the integrity of the health system in Puerto Rico and the continuity of federal funds that are scheduled to expire in 2027.

“Contracting with fraudulent entities or those accused of fraud puts the Medicaid program at risk and [makes it] precarious,” Pacheco Beauchamp said.

The EPPR, through its president, urged the Transition Committee to “… strongly reject and denounce any external pressure that seeks to distort a network that adequately complies with local and federal laws and regulations.”

“The history of fraud allegations [involving] Medicaid and Medicare programs that federal authorities have made against Walgreens raises doubts about its commitment to public health,” Pacheco Beauchamp said. “… The government’s public policy must focus on eradicating fraud, using and protecting federal funds, and promoting transparent administration.”