House Members To FTC: Merged Express Scripts/Medco Could Raise Prices And/Or Limit Critical Access

WASHINGTON, Oct. 27, 2011 /PRNewswire-USNewswire/ — The Preserve Community Pharmacy Access NOW! (PCPAN) coalition today applauded 14 Democratic and Republican House members for raising concerns about the recently proposed merger between Express Scripts Inc. and Medco Health Solutions Inc, two pharmacy benefit management (PBM) companies. In a letter to the Federal Trade Commission (FTC), the group stated that a combined entity would have the ability to raise prices and/or block pass through pricing for plans and patients – ultimately limiting critical access, and requested, a “full and thorough investigation” of the $29.1 billion merger.

“The planned Express Scripts/Medco merger would make an already difficult situation even worse for American consumers by increasing prices and decreasing access to quality care – such a course of action should be thoroughly scrutinized,” said former Congresswoman Eva M. Clayton, chairwoman of the Preserve Community Pharmacy Access NOW! (PCPAN) coalition. “I am pleased that a bipartisan group of elected representatives is drawing attention to the serious and very real concerns that this merger raises and I hope that the FTC takes notice. The Express Scripts/Medco merger needs to be studied, and ultimately stopped.”

Pharmacy benefit managers (PBMs) are the largely unregulated drug middlemen that manage prescription drug benefit programs for employers, unions, health plans and others. Today, PBMs control the drug benefits of more than 200 million patients nationwide. This number includes a diverse group of Americans such as Medicare Part D beneficiaries, servicemen and veterans that are TRICARE beneficiaries, and more.

Last July, Express Scripts Inc. and Medco Health Solutions Inc, two of the nation’s largest PBMs, announced a merger agreement that could go into effect as soon as early 2012. A merged mega-PBM would control much of the supply line of brand-name and generic drugs, especially in markets where the PBMs are already highly concentrated. This would result in higher costs for prescription medications that would need to be absorbed by employer health care plans and patients. It would also result in decreased access to local community pharmacies that provide convenient and helpful services.

“This proposed merger is not in the best interest of consumers and raises some serious anti-trust concerns,” said Dennis Archer, chief legal counsel to the Preserve Community Pharmacy Access NOW! (PCPAN) coalition. “In a situation like this, a thorough investigation isn’t just a good idea, it is an absolutely necessary step. I hope that Members of Congress and others will continue to speak out to make sure that this step is taken.”

To view the letter, please click here.

Preserve Community Pharmacy Access NOW! is a coalition of consumers, businesses and community-based pharmacists from across the country that have come together for the purpose of opposing the planned merger between Express Scripts Inc. and Medco Health Solutions Inc. PCPAN is a project of Pharmacy Choice and Access Now.

SOURCE Preserve Community Pharmacy Access NOW! (PCPAN)