In a move that seems to repeat its recent actions in Washington state, Walgreen Company has announced it will no longer be filling prescriptions for Medicaid patients in the state of Delaware.  The pharmacy chain, the largest in the state, says it cannot continue filling these prescriptions after new state fiscal budget cuts take effect in July.  Delaware’s budget cuts include slashing the reimbursement price it pays to pharmacies for filling prescriptions for brand-name drugs.

The move comes as protest against the budget cuts, which would force the pharmacy to fill these prescriptions at less than cost, according to Walgreen’s senior vice president of pharmacy, Kermit Crawford.  Walgreen began dispensing prescription drugs in Delaware in 2006, after buying the Happy Harry’s drugstore chain.  The purchase made Walgreen the largest provider of pharmacy services in the state, with 66 stores statewide.

In an effort to circumvent the decision to stop filling Medicaid prescriptions, representatives from Walgreen and the National Association of Chain Drug Stores met with Delaware lawmakers to suggest alternative options but no agreements were reached.

Rite Aid Corporation, a Walgreen competitor, says it will continue filling Medicaid prescriptions in all its 42 Delaware stores.  CVS Caremark Corporation also operates pharmacies in the state.