CVS, Walgreens, and Walmart Keep Position in 2023 Part D Preferred Networks

In Preferred Pharmacy Networks in 2023’s Medicare Part D Plans: Cigna, CVS Health, Humana, UnitedHealthcare, WellCare, and More, I highlighted how those networks have taken over the world of stand-alone Medicare Part D prescription drug plans (PDP) and become a major presence in Medicare Advantage prescription drug (MA-PD) plans. 

Today, I examine the seven largest retail chains’ 2023 participation in the 22 major 2023 Part D preferred networks that the eight largest plan sponsors will offer. As always, I offer you a handy table for scoring each chain’s participation and changes from 2022 to 2023. 

As you’ll see, Kroger’s decision to exit Express Scripts commercial pharmacy networks has had negative ramifications for its Part D position. Kroger will be out-of-network—not just non-preferred—in the major Part D networks for which Express Scripts acts as the PBM. That will be  a key factor behind its $1+ billion revenue hit.

PREFER ME
Preferred network models have grown rapidly within the Medicare Part D program. The Centers for Medicare & Medicaid Services (CMS) calls them preferred cost sharing networks. CMS calls the pharmacies in such networks preferred cost sharing pharmacies. 

For 2023, nearly all of the total 804 Medicare Part D regional prescription drug plans (PDP) have a preferred network. See our previous article for more details on next year’s market. 

We have examined the 22 Part D plans offered by eight major companies. There will be 21 major multi-regional Part D plans with preferred cost sharing pharmacy networks and 1 smaller plan (Elixir RxPlus). These companies will operate 725 regional PDPs, which equates to 90% of total regional PDPs. For each plan, we have identified the network status of seven large retail chains. 

You can find our analysis of retail chain participation in 2022 plans here: CVS, Walgreens, Walmart, and Supermarkets Keep Position in 2022 Part D Preferred Networks—With a Little Help from 340B. For more on the economics and strategies of narrow networks, see Chapter 7 of our 2022 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers. 

CHAIN REACTION
With the exception of Kroger and Rite Aid, the major chains will be in a comparable share of the total available networks in 2023 compared with 2022. 

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