California to keep paying Walgreens despite abortion dispute
California's Medicaid program will continue to pay Walgreens about $1.5 billion each year
SACRAMENTO, Calif. (AP) — California's Medicaid program will continue to pay Walgreens about $1.5 billion each year despite Democratic Gov. Gavin Newsom declaring last month the state was done doing business with the pharmacy giant after it indicated it would not sell abortion pills by mail in some states.
“California won’t be doing business with @Walgreens -- or any company that cowers to the extremists and puts women’s lives at risk. We’re done,” Newsom tweeted March 6.
He then ordered his administration not to renew a $54 million contract with the company to provide prescription medication to the state's prison system.
But cutting ties with Walgreens wasn't as clear cut as the governor first indicated. Walgreens has a much more lucrative connection to California's Medicaid program — the joint federal and state health insurance program for people who are disabled or have low incomes. Federal law says Medicaid patients have the right to fill prescriptions from any willing and qualified provider.
