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:2/5/2016)... http://www.researchandmarkets.com/research/jsc97m/global ) ... "Global Musculoskeletal Partnering 2010-2016: Deal trends, players ... offering. --> http://www.researchandmarkets.com/research/jsc97m/global ) ... "Global Musculoskeletal Partnering 2010-2016: Deal trends, players ... offering. --> Research and ...
(Date:2/5/2016)... , Feb. 5, 2016  Venice,s newest ... is the first of its kind in the ... tattoos through advanced laser treatment. The physician-owned and ... Suncoast by storm with its revitalizing ... and advanced multi-wavelength Astanza Trinity technology. ...
(Date:2/5/2016)... Feb. 5, 2016 Dehaier Medical Systems ... the "Company"), which develops, markets and sells medical ... China and international markets, today ... aims to concentrate the Company,s resources to develop ... business and to focus more on its major ...
Breaking Medicine Technology:
(Date:2/8/2016)... (PRWEB) , ... February 08, ... ... and security executive networking and relationship-marketing firm, announced today that nominations will ... Information Security Executive® (ISE®) West Awards. , Awards include the Information ...
(Date:2/8/2016)... ... February 08, 2016 , ... ... lower incidence rate of type 2 diabetes in the GrassrootsHealth cohort with substantially ... to make a change in public health,” states Carole Baggerly, Director of GrassrootsHealth, ...
(Date:2/8/2016)... (PRWEB) , ... February 08, 2016 , ... The ... annually in this country. The AutismOne 2016 Conference, which is being held May 25-29 ... often won’t hear elsewhere about helpful interventions and causes of chronic illness in children. ...
(Date:2/7/2016)... ... February 07, 2016 , ... Dr. Todd Hobgood ... his medical and surgical expertise. Technically known as deoxycholic acid or previously as ... a non-surgical alternative for reduction of fat below the chin (aka the “double ...
(Date:2/6/2016)... ... February 06, 2016 , ... ... disorder treatment helps to reduce the frequency and level of relapse. ... Re-Establishing Healthy Identity and Purpose,” will explore the critical tasks of the recovery ...
Breaking Medicine News(10 mins):