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(CALIFORNIA GLOBE) – Statements from the Governor’s office and the California Department of Health Care Services confirmed on Thursday that Governor Gavin Newsom’s policies to “no longer do business with Walgreens” have been reversed because of the federal Medicaid statue prohibiting him from doing so.
Following Walgreens’ announcement in early March to that they would longer sell abortion pills in the 20 states where they are illegal at the state level, Governor Newsom fired back by tweeting out “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.”
On March 9th, Newsom announced that the contract between the California Department of General Services (DGS) and Walgreens to procure specialty pharmacy prescription drugs, primarily used by the California Department of Corrections and Rehabilitation (CDCR) and its correctional health care system, would not be renewed. The DGS specifically notified Walgreens that a planned renewal on May 1, 2023 would no longer be tenable, with the state looking to others to fulfill the contract instead. In total, Walgreens is set to lose $54 million annually from that one contract alone.
“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” said the Governor in a statement. “California is on track to be the fourth largest economy in the world and we will leverage our market power to defend the right to choose.”
In addition, Newsom further hinted at more cuts with Walgreens in the near future.
