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California is legally bound to continue doing business with Walgreens through the state’s massive Medicaid program, health law, experts say.

Gov. Gavin Newsom declared California would cut ties with Walgreens after the company said it would not distribute abortion pills in some states. Federal rules have required him to walk back that hard-line tweet.

Gov. Gavin Newsom declared that California would cut ties with Walgreens after the company said it would not distribute abortion pills in some states. But federal rules make it difficult for the state to unwind its Medicaid prescription drug agreement, which paid Walgreens $1.5 billion last year.

Gov. Gavin Newsom declared last month that California was "done" doing business with Walgreens after the pharmacy chain said it would not distribute an abortion pill in 21 states where Republicans threatened legal action. Since then, KHN has learned that the Democratic governor must compromise on his hard-line tweet.

Gov. Gavin Newsom's declaration came after the company said it would not distribute abortion pills in some states. However, California is legally bound to continue doing business with Walgreens through the state’s massive Medicaid program.