Thousands of Tricare Pharmacy Locations Could Be Lost Due to Kroger-Albertsons Merger

A planned merger of Kroger and Albertsons grocery corporations could slash the number of Tricare network pharmacies and send beneficiaries searching for a new place to get their prescription medications in the coming year.

Tricare beneficiaries who get prescription medications at a Kroger pharmacy or other store in the Kroger group received letters last week telling them that the company is leaving the Tricare pharmacy network effective Jan. 1. Its plans to acquire Albertsons, Safeway, Vons and other retail grocery chains could reduce the network by another 5,000 stores, according to the Military Officers Association of America.
The grocery giant announced the decision to leave the network last month in response to a contract offer from the Defense Department's pharmacy benefits manager, Express Scripts, which was described by Kroger officials as not meeting "equitable and fair" standards.

"Since February, Kroger has attempted on dozens of occasions to negotiate in good faith with [Express Scripts Inc.], seeking a more equitable and fair contract that lowers cost, increases access, and delivers greater transparency -- but there has been little to no progress to date," Kroger officials said in a statement Sept. 30 announcing the termination of their agreement.
Kroger is set to acquire Albertsons and its affiliates by 2024, given regulatory approval, which could further reduce the number of network pharmacies.

Albertsons operates its own branded stores and other common retail grocery chains. A loss of these stores could reduce the Tricare retail pharmacy network by nearly 5,000 locations, in addition to Kroger and the nearly 15,000 small and independent pharmacies that were dropped in October.

"Just the independents leaving is a 25% cut to the number of pharmacies in the network. If you take out Kroger plus Albertsons, now you are talking about a 33% cut to the network if there is nothing done to bolster it otherwise," said Karen Ruedisueli, director of government relations for health affairs with the Military Officers Association of America.

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