Washington government announced that 6% reduction in Medicaid reimbursements for brand-name prescription drugs will be effective from May 1. The government is also insisting on cheaper, generic drugs for low-income Medicaid clients if available and equivalent to brand-name drugs. As a revolt against to new rule, Walgreen, one of the largest U. S. pharmacy chains has planned to withdraw 44 of its 111 pharmacies from the Medicaid program. Walgreen has track record of providing efficient service to people.

Drugstore Company Walgreen Co said on Monday that cutting the reimbursement rate of generic and brand-name drugs would severely impact the "economic viability of doing business in Washington."

Kermit Crawford, Walgreens senior vice president of pharmacy, said: "The fact remains that the state could fill its Medicaid budget gap in a number of other ways. As an example, independent and chain pharmacies have identified as much as $90 million in potential savings through more effective medication management. These are sound alternatives to payment cuts to pharmacies."