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Longs Drug Stores to Continue to Service Medi-Cal Patients
Date:7/1/2008

FOCUS IS ON PATIENTS DURING BUDGET CRISIS

WALNUT CREEK, Calif., July 1 /PRNewswire-FirstCall/ -- Longs Drug Stores Corporation (NYSE: LDG) announced today that it will continue to honor new and refilled prescriptions for their patients covered by Medi-Cal despite the State's plan to cut reimbursements effective July 1. In February, in the face of a multi-billion dollar deficit the California legislature passed and the Governor signed into law a 10% reduction on all Medicaid (Medi-Cal) reimbursements. Because under the new law the State will be paying pharmacies less than their cost for the brand medication in many cases, it is anticipated that some pharmacies may decline to fill such prescriptions. If this occurs, Longs is particularly concerned for cancer, HIV/AIDS, and mental health patients who could be impacted.

"We believe that continuing to fill these prescriptions is the right thing to do for our patients at the current time," said Bruce Schwallie, EVP of Business Development and Managed Care for Longs Drugs. "We have a tradition of caring for Californians for over 70 years and we want to make certain our patients have access to their necessary medications. Discussions continue with the State as to how the current budget crisis can be addressed while minimizing the impact for people who need these medications to not only maintain their health and wellness, but in some extreme cases, to survive."

The 10 percent reimbursement reduction for prescription drug products will mean that prescription reimbursements will be reduced to the point that a pharmacy will take a loss to dispense most brand name prescriptions to a Medi-Cal beneficiary. This reduction will pay pharmacies below their actual drug ingred
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SOURCE Longs Drug Stores Corporation
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