Why It Matters

Pharmacy benefit managers are squeezing reimbursement rates so aggressively that even major chains like Walgreens cannot sustain profitability. Federal investigations have exposed PBMs marking up generic drugs by as much as 5,000 percent, and independent pharmacies are closing at roughly one per day. Walgreens announced plans to shutter 1,200 stores—roughly a quarter of its portfolio—citing unprofitable locations.

The company needs congressional action to restructure PBM economics: legislation mandating pricing transparency, prohibiting spread pricing, and granting pharmacists expanded clinical roles. The political environment is favorable—the Trump administration issued executive orders on PBM transparency, and the Senate Judiciary Committee held bipartisan hearings where lawmakers called PBM practices "a moral obscenity."

However, Walgreens’ recent takeover by private equity firm Sycamore Partners has triggered warnings from Senator Elizabeth Warren about "pharmacy deserts" in underserved communities, adding political urgency to the company’s lobbying agenda.

By the Numbers

Walgreen Co. spent $450,000 on in-house lobbying in the last quarter of 2025, continuing a two-decade pattern of federal advocacy. The company has filed 441 total disclosure reports since 2003, spending approximately $63.8 million historically—with in-house operations accounting for $46.39 million.

Two in-house lobbyists drive the effort: Madeline Kroll Hodge, who worked for Senator Mike Crapo (R-ID) on the Senate Finance Committee, and Isaac A. Fordjour, who offers two decades representing healthcare heavyweights including Boston Scientific Corp., Amgen, and PhRMA.

The Agenda

Walgreen Co. focused on three primary lobbying areas in the last quarter.

The company is pushing pharmacy benefit manager reform, supporting bills like the PBM Reform Act of 2025 and the Patients Before Middlemen Act to increase transparency and improve reimbursement rates. Walgreens is also backing legislation to grant pharmacists "provider status" under Medicare Part B, including the Ensuring Community Access to Pharmacist Services Act.

On retail crime, Walgreens is advocating for the Combatting Organized Retail Crime Act, seeking a federal coordination center to address organized theft rings.

Finally, Walgreens is lobbying on the Work Opportunity Tax Credit (WOTC), a federal tax credit for hiring individuals from targeted employment groups.

Broader Context

Walgreens’ lobbying unfolds against acute industry crisis and rare bipartisan congressional momentum. The pharmacy sector faces existential threats from PBM practices that triggered FTC reports documenting $7.3 billion in excess profits and over 300 pharmacy closures in Q1 2025.

The Senate Judiciary Committee held hearings in May 2025 where bipartisan lawmakers condemned PBM practices. Walgreens faces particular scrutiny following its August 2025 takeover by Sycamore Partners, with Senator Elizabeth Warren warning the deal could create "pharmacy deserts".

Between The Lines

Congress is actively advancing legislation aligned with Walgreens’ priorities. The Senate Judiciary Committee held a PBM hearing on May 13, 2025, and the House Energy and Commerce Committee examined PBM cost impacts on February 26, 2025.

Multiple bills are advancing, including H.R. 4317 – The PBM Reform Act of 2025 and H.R. 3164 – Ensuring Community Access to Pharmacist Services Act. Both parties show support—Senator Chuck Grassley (R-IA) calls for transparency, while Representative Diana Harshbarger (R-TN-1) introduced the Pharmacists Fight Back Act.

Competitive Landscape

Walgreens faces coordinated competition from major retail peers lobbying on identical priorities. Kroger Co., Albertsons Cos. Inc., and Walmart Inc. are actively lobbying on PBM reform, pharmacist provider status, and organized retail crime—creating rare industry-wide consensus.

All competitors uniformly backed the Combatting Organized Retail Crime Act, which became law in 2025, establishing a federal center to combat retail crime. This collective advocacy significantly amplifies industry influence, demonstrating that pharmacy chains face shared financial pressures transcending individual company interests.

The Bottom Line

Walgreens lobbyed Congress on PBM reform, retail crime, and tax credits amid acute industry crisis. Congressional momentum appears strong with bipartisan support for transparency legislation and pharmacist provider status expansion. The company’s experienced lobbyists address issues where competing retailers lobby identically, but new private equity ownership raises political concerns about pharmacy access in underserved communities.

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