Kroger Health reunites with Express Scripts

Kroger has inked a new deal giving more than 100 million Express Scripts members access to the grocery chain’s pharmacies, the companies announced Wednesday.

The agreement applies immediately to Medicare prescription drug plans and TRICARE military health plans. The pharmacy benefit manager's commercial and Medicaid clients can opt to add Kroger pharmacies to their networks, according to a news release.

Related: 'Transparent' CVS, Express Scripts, OptumRx PBMs draw interest

Kroger and Cigna subsidiary Express Scripts severed ties two years ago after the retailer said the PBM's drug pricing model was unsustainable and the two failed to agree to contract terms.

Kroger Health operates more than 2,200 pharmacies in 35 states, according to the company. The grocer was the sixth-largest pharmacy chain by prescription revenue in 2023, according to a report the Drug Channels Institute published last year.

Chain and independent pharmacies not affiliated with their own PBMs have been vocal about financial and operational hardships associated with the three largest companies: Express Scripts, CVS Health subsidiary CVS Caremark and UnitedHealth Group division OptumRx. The Federal Trade Commission has said these PBMs pay affiliated pharmacies more than other pharmacies.

The major PBMs have made strides over the past year to improve relationships with pharmacies, health insurers, employers and patients, including by launching drug pricing models and transparency initiatives. Last week, Cigna announced it would limit out-of-pocket drug costs for PBM members.

“Express Scripts works to create flexible pharmacy network options — from large chain pharmacies to regional pharmacies to independent pharmacies and home delivery — that help ensure members can easily access the medications they need, when and where it’s most convenient,” Express Scripts said in the news release.