The retail pharmacy landscape is ever-changing. In 2025 alone, several chains have announced major changes that may impact how health plans provide access to prescription medications. Continue reading to learn more about potential disruptions to individuals taking prescription drugs and how to navigate these changes.
Walgreens sold to a private equity firm
Walgreens was sold earlier this year to a private equity firm, Sycamore Brothers, for an estimated $10 billion. In recent years, the chain has struggled to maintain profitability in an ever-changing retail environment.1
If this buyout is similar to other large-scale private equity ventures, we should expect it to culminate in major changes for the retail pharmacy giant. One of the more recent examples of a public company going private is X Corp (formerly Twitter). After it was purchased in 2022, approximately 3,700 jobs were cut, new leadership was appointed, and there was an attempt to monetize the platforms ‘tweet’ and ‘verified’ capabilities. The direction of the social media platform shifted, as there wasn’t a publicly appointed board to lead the company anymore.2
As far as Walgreens, not only is it a new set of eyes on the operations of the company, there may be less pressure on immediate profitability, and longer-term outlooks can be used. With that said, it is likely that the operational setup of Walgreens will be turned on its head, with a big shake-up in the organizational structure of the company.
Although nothing has been officially announced yet, we can expect significant changes coming from Walgreens, including potential for higher overall claims costs, a reduction in retail store locations, and either newly added or eliminated core services.
Rite Aid refiled for Chapter 11 bankruptcy
Earlier this year, Rite Aid refiled for Chapter 11 bankruptcy. They are planning on selling off all their assets, including prescription files and inventory.3 For students, this means that the pharmacy name or location where they get their refills may change. If schools are based in a region with a large Rite Aid presence, there may be confusion on what is going on and how to access in-network coverage.
CVS changing its PBM reimbursement model
CVS announced that it will be uprooting what payment reimbursement model it will accept from pharmacy benefit managers (PBMs) and other payers starting sometime in 2025, dubbing their new methodology ‘CVS CostVantage’.4 Instead of negotiating rates tied to a percentage of average wholesale price (AWP)5 or maximum allowable cost (MAC)6, CVS will be utilizing ‘a transparent formula built on the drug acquisition cost, a set markup, and a fee to reflect the quality of pharmacy services provided’.
While this pricing transparency could be perceived as a positive change, it could ultimately lead to increased costs for both patients and their insurers and increased profits for CVS stores. In most scenarios where contractual pricing for medications increases, clinical programs are added (e.g. weight-loss counseling, increased medical management, etc.).
CVS has not announced any additional clinical programs to go along with this shift in billing. Not all major PBMs have announced that they agree to this new model, and some pushback or potential pharmacy network disruption could be expected in the coming years.
Regulatory pressure on PBMs
Several states have either implemented or proposed regulations that would prohibit PBMs from operating affiliated pharmacies in the same state. This will have an impact on most large PBMs, including CVS/Caremark (CVS & CVS Specialty), Optum (Genoa & Optum Specialty), and Express Scripts (Accredo Specialty).
While the intent of these regulations seems to be aimed at fairness and preventing market manipulation, the outcome will likely be less pharmacy choice in states where these regulations are passed. For example, CVS may be required to shut down all operations in the state of Arkansas because of the recently approved regulation.7 While some of the stores will likely be sold to competitors like Walgreens, there could be a large percentage of stores that close entirely.
Impact to Wellfleet Rx members
Changes to this market can be unsettling, and understanding where and when Wellfleet members can receive care is imperative. Wellfleet Student Health Insurance Plan members can refer to the Wellfleet Rx pharmacy network listing for the most up-to-date information on what in-network pharmacies are available.
Resources
1 Walgreens Boots Alliance. (2025, March 6). Walgreens Boots Alliance Enters into Definitive Agreement to Be Acquired by Sycamore Partners. Retrieved from https://investor.walgreensbootsalliance.com/news-releases/news-release-details/walgreens-boots-alliance-enters-definitive-agreement-be-acquired.
2 Robledo, A. (2023, October 5 ). Beyond X: Twitter’s changed a lot under Elon Musk, here are some notable moves. Retrieved from https://www.usatoday.com/story/tech/news/2023/10/05/elon-musk-twitter-news/71066360007/.
3 Kroll. (2025, May 5). Case background. Retrieved from https://restructuring.ra.kroll.com/RiteAid2025/.
4 CVS. (2025, January 6). CVS Pharmacy achieves CVS CostVantage milestone . Retrieved from https://www.cvshealth.com/news/company-news/cvs-pharmacy-achieves-cvs-costvantage-milestone.html.
5 Definitive Healthcare. (nd). Average Wholesale Price (AWP). Retrieved from https://www.definitivehc.com/resources/glossary/average-wholesale-price.
6 Definitive Healthcare. (nd). Maximum allowable cost (MAC). Retrieved from https://www.definitivehc.com/resources/glossary/maximum-allowable-cost.
7 Nowosielski, B. (2025, April 22). As a Result of PBM Reform, CVS Will Close Over 20 Pharmacies in Arkansas. Retrieved from https://www.drugtopics.com/view/as-a-result-of-pbm-reform-cvs-will-close-over-20-pharmacies-in-arkansas.
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