Navigation Links
American Consumer Institute Warns FTC: ESI/Medco Deal Poses Significant Anticompetitive Risks
Date:1/11/2012

WASHINGTON, Jan. 11, 2012 /PRNewswire-USNewswire/ -- The American Consumer Institute Center for Citizen Research (ACI) today released a letter sent to the Federal Trade Commission (FTC) expressing concerns about the proposed merger between Express Scripts, Inc. (ESI) and Medco Health Solutions, two pharmacy benefit management (PBM) companies.  The two PBMs announced a $29 billion merger deal last year that could take effect as soon as early 2012.

"Approving this mega-PBM merger would only exacerbate the conflicts of interest and concentration of market power that already exist in the PBM industry, and would in no way benefit consumers," said Steve Pociask, president of ACI.  "For these reasons, the Institute is strongly opposed to the Express Scripts-Medco merger, and we urge the commission to dedicate adequate resources to thoroughly review the merger."  

In a letter to the FTC, the organization expressed concerns that the PBM industry is already poses anticompetitive risks for consumers.  According to ACI, an approved merger will only exacerbate the problems that already exist.

"PBMs broker agreements on multiple sides - and profit from each," the letter states.  "Because they always have better and more complete information on costs and prices than other involved parties, PBMs have a lop-sided advantage in dealings with the other parties which enables them to profit from managing the health plans sponsored by corporations, governments and unions as well as by funneling sales to preferred drug manufacturers in return for kickbacks."  

ESI and Medco are two of the nation's three largest PBMs, and last year announced plans to merge.  The deal is currently under review by the FTC and Congress.  If the merger is approved, it is clear what would result: some number of pharmacies would be driven out of the market altogether.  That would further encourage PBMs to engage in self-dealing, favoring their own mail-order services over competitive pharmacies.  Thus, consumer choice and access to pharmacies would be diminished. 

"Today, Express Scripts and Medco are the third and first largest PBMs in the market.  A merger between the two would eliminate a large competitor from an already-concentrated market.  The combined company would be able to leverage its size to further squeeze pharmacies and drug manufacturers," Pociask continued.  "There are no obvious benefits to consumers from this merger, but there are clear risks and likely damages."

ACI is a nonprofit (501c3) educational and research institute.  For more information, visit www.theamericanconsumer.org


'/>"/>
SOURCE American Consumer Institute Center for Citizen Research (ACI)
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Gastrointestinal Cancers Symposium of the American Society of Clinical Oncology (ASCO-GI): Phase III Data on Bayers Investigational Compound Regorafenib (BAY 73-4506) in Patients with Metastatic Colorectal Cancer to be Presented as Late Breaking Or
2. American Association of People With Disabilities and Consumer Advocates Strongly Oppose Medicare Wheelchair Policy That Will Harm Medicare Beneficiaries
3. The National Urban League and League of United Latin American Citizens Urge Express Scripts to Reach Agreement with Walgreens
4. American Society of Bariatric Physicians Supports FDA Warning Letters for Misleading Advertising of Lap-Band
5. American Pacific Reports Fiscal 2011 Results
6. Coronado Biosciences Announces Phase 1 Results of CNDO-109 in AML Presented at the American Society of Hematology
7. Onyx Pharmaceuticals Presents Carfilzomib Data at 53rd American Society of Hematology Annual Meeting
8. American Association for Homecare Urges Congress to Enact Market-Based Alternative to Medicares Bidding Program for Home Medical Equipment
9. American Pacific to Release Financial Results and Hold Fiscal 2011 Year-End and Fourth Quarter Investor Teleconference
10. Inspiration Biopharmaceuticals Presents Key Scientific Data from its Two Lead Hemophilia Development Programs at the 53rd Annual Meeting of the American Society of Hematology (ASH)
11. TetraLogic Pharmaceuticals Announces Oral Presentation on Smac Mimetic TL32711 at American Society of Hematology (ASH) Annual Meeting
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/25/2016)... , May 25, 2016  Zymo Research Corp. ... their new reference materials that help researchers obtain ... collection to analyses. The rapid growth of the ... researchers to have standard methods to improve the ... Biases inherently exist at every step of the ...
(Date:5/25/2016)... According to market research "Global ... Demand Forecast to 2022 - Industry Insights by Type ... by P&S Market Research, the global insulin delivery device ... it is expected to grow at a CAGR of ... segment is expected to witness the fastest growth at ...
(Date:5/25/2016)... , May 25, 2016  Granger Diagnostics today ... test for wounds and infections. This test ensures ... and select viruses. The test requires only a ... David G. Bostwick , MD, ... to facilitate wound healing: "We are excited to ...
Breaking Medicine Technology:
(Date:5/26/2016)... Franklin, TN (PRWEB) , ... May 26, 2016 , ... ... today, and more than 32 million cancer survivors worldwide. On Sunday, June 5, 2016, ... the 29th annual National Cancer Survivors Day®. , National Cancer Survivors Day® is ...
(Date:5/26/2016)... ... ... In an effort to provide hair restoration information to the widest possible audience, Dr. Parsa ... not use the app. Dr. Mohebi, the founder of Parsa Mohebi Hair Restoration, is making ... , Dr. Mohebi says, “The positive response to the Snapchat videos we started last month ...
(Date:5/26/2016)... , ... May 26, 2016 , ... North Cypress ... 13 at Blackhorse Golf Club in Cypress. With the help of community partners, the ... restores, empowers, and renews hope for wounded service members and their families through health, ...
(Date:5/26/2016)... ... May 26, 2016 , ... ... products recently hosted the first PowerWave Instructor Certification Course in Stoughton, Massachusetts. The ... group of fitness professional through the 8 hour interactive course to qualify participants ...
(Date:5/26/2016)... ... May 26, 2016 , ... The introduction of our professional athletes coincides with ... ™”. , “We are proud to introduce Meghan Klingenberg, defender and World ... Brian Quick, wide receiver for Los Angeles who was a second round selection in ...
Breaking Medicine News(10 mins):