The Walgreen Co. (WAG) has issued a warning this week to withdraw almost half of its pharmacies from the state of Washington’s Medicaid program Feb. 15 since the program continues to reduce the reimbursements.

The largest drug-store chain has made the same vow last year, but a smaller cut in reimbursement rates made Walgreen stand down. Last year Delaware witnessed a similar standoffs.

The company also informed this week that the recent cut in Washington has resulted in Walgreen suffering heavy losses on the dispensing of 95 percent of its medications with brand-name.

The reductions have resulted from a court in Massachusetts ruling last fall which cut the industry pricing standard “even though pharmacies” acquisition costs have not altered.

WAG said that it will withdraw 64 of its pharmacies from the program which represents 75 percent of the company’s total Medicaid business in the state. About 121 pharmacies are operated by the company in Washington.

Jim Stevenson, communications director for Washington State’s Medicaid program, said “We want to find out where these stores are, and we want to make sure our clients have alternatives.”