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It turns out that Gov. Gavin Newsom’s tweet to the contrary, California will not be severing ties with Walgreens. After the store decided not to distribute an abortion pill, Gov. Newsom tweeted “California won’t be doing business with Walgreens.”
Walgreens makes up 10% of California’s pharmacy market and is a vital prescription provider for Medi-Cal insurers.
The California Healthline reported last week that the governor’s tweet won’t have a dramatic effect. Walgreens will be allowed to rebid on the state contract and the state is legally bound to continue doing business with Walgreens through the Medicaid program.
In 2022, California paid Walgreens $1.5 billion for its services.
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