Walgreens said pharmacy profit margins soared due to the vaccines. Photo: Mario Tama/Getty Images
Walgreens has given out 25 million COVID-19 vaccinations in its stores this year, including 17 million from March through May.
Why it matters: Walgreens executives said the vaccines were the main reason why the company recorded higher foot traffic, sales and profits in the quarter. But this boost may be short-lived, as demand for vaccines has slowed down considerably since late April.
By the numbers: COVID-19 shots are free for people to get, but insurance programs still pay for the shots' administration.
- Medicare pays $40 for each COVID-19 vaccine dose, and commercial insurers likely pay more (if flu shots are any indication).
- That means, at a minimum, Walgreens registered at least $680 million in COVID-19 vaccine payments in the last quarter and possibly as much as $1 billion or more.