Navigation Links
New Jersey Jobs, Pharmacy Choice Endangered by Proposed Express Scripts-Medco Merger
Date:1/27/2012

ALEXANDRIA, Va., Jan. 27, 2012 /PRNewswire-USNewswire/ -- New Jersey would lose over 2,400 jobs, local economies would suffer and patients may be denied their choice of pharmacy if the proposed mega-merger of two prescription drug middlemen goes through, the National Community Pharmacists Association (NCPA) said today.

(Logo: http://photos.prnewswire.com/prnh/20100106/DC33253LOGO)

"Unless this merger is stopped, pharmacists fear that virtually everyone in the Garden State will lose," said NCPA CEO B. Douglas Hoey, RPh, MBA. "Patients could be forced to use mail order pharmacies, some local jobs and economic activity would disappear and prescription drug prices would increase."

The Federal Trade Commission (FTC) is currently reviewing the proposed merger of pharmacy benefit managers (PBMs) Express Scripts, Inc. and Franklin Lakes-based Medco Health Solutions. The multi-billion-dollar companies are already among the country's largest PBMs, which administer prescription drug plans and operate mail order pharmacies.

In New Jersey, the companies collectively manage pharmacy benefits for 350,000 state employees and their dependents as well as 39,775 of the Defense Department's TRICARE beneficiaries.

By merging, a combined Express Scripts-Medco company would have unprecedented market dominance and face considerable shareholder pressure to grow its mail order pharmacy's market share. Should the mega-PBM convert 30 percent of the retail prescriptions that it manages to mail order (a conservative assumption), NCPA estimates that independent community pharmacies would lose $88.3 million in annual revenue and lay off 1,718 full-time employees. Other ancillary businesses in New Jersey would lose an estimated $75.9 million in annual revenue and will lay off 687 full-time employees.

In reality, the economic losses for the state would likely be worse than these numbers suggest as Express Scripts-Medco lowers pharmacy reimbursements for prescriptions filled locally. Moreover, NCPA's analysis only incorporates a portion of the health plans managed by Express Scripts or Medco and thus likely underestimates the merger's total economic impact on the state. It also does not address any layoff of Medco employees in the state, which are possible should the PBMs win approval to combine operations.

"Patients in New Jersey's underserved rural and inner-city communities are especially at risk as their only pharmacy may be forced out of business," Hoey added. "The country's leading consumer groups oppose this merger and nearly 40 U.S. Senators and Representatives have also voiced their concern. We strongly urge New Jersey's congressional delegation to weigh in with the FTC before it's too late."

New Jersey's independent community pharmacies generate $2.9 billion in annual revenue and employ 7,590 individuals full-time. By extension, these small businesses also support $2.6 billion in additional local revenue annually and 3,630 full-time employees.

The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 23,000 independent community pharmacies. Together they represent a $93 billion health care marketplace, dispense nearly 40% of all retail prescriptions, and employ more than 315,000 people, including 62,400 pharmacists.  Independent community pharmacists are readily accessible medication experts who can help lower health care spending. They are committed to maximizing the appropriate use of lower-cost generic drugs and reducing the estimated $290 billion that is wasted annually by improper medication use. To learn more go to www.ncpanet.org or read NCPA's blog, The Dose, at http://ncpanet.wordpress.com.

 


'/>"/>
SOURCE National Community Pharmacists Association
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Soligenix Receives $574,000 in Non-Dilutive Financing from New Jerseys Technology Business Tax Certificate Transfer Program
2. Palatin Technologies Receives $1.1 Million From Sale of New Jersey State Tax Credits
3. Pharmaceutical Industry Confronting Big Challenges, Opportunities in 2012: Leaders to Convene at Groundbreaking Event on February 7-8 in New Jersey
4. TheraBiogen, Inc. Relocates Corporate Headquarters to New Jersey
5. Ferring Pharmaceuticals To Develop Major Corporate Center in Parsippany, New Jersey
6. Brand Drug Copay Coupons Undermine Generics, Raise Health Costs by $1 Billion in New Jersey
7. Daiichi Sankyo, Inc. Brings the Legacy of Washington, DC Cherry Trees to New Jersey
8. New Jersey Center for Prostate Cancer & Urology Among First in Nation to Treat Advanced Prostate Cancer Patients with PROVENGE
9. Pharma Elite to Unveil Latest Industry News/Program Agenda with 70+ Expert Speakers at Exclusive Event: Pharma CI Conference, September 13-14, 2011 in New Jersey
10. NeoStems Subsidiary Progenitor Cell Therapy Receives FACT Accreditation for Its New Allendale, New Jersey Manufacturing Facility
11. Bayer HealthCare Selects the State of New Jersey for East Coast Site Consolidation
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/23/2017)... 2017 ... Research and Markets has announced the addition of the ... report to their offering. The Global Antifungal Drugs ... the next decade to reach approximately $12.8 billion by 2025. ... all the given segments on global as well as regional levels presented ...
(Date:2/23/2017)... Ga., Feb. 23, 2017  MiMedx Group, Inc. (NASDAQ: ... tissue and patent-protected processes to develop and market advanced ... Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, ... and full year ended December 31, 2016. ... Revenue is a 31% increase over full year 2015 ...
(Date:2/23/2017)... , Feb 23, 2017 Research and ... Devices Market Analysis & Trends - Industry Forecast to 2025" ... ... grow at a CAGR of around 9.2% over the next decade ... report analyzes the market estimates and forecasts for all the given ...
Breaking Medicine Technology:
(Date:2/23/2017)... ... February 23, 2017 , ... Healthcare ... for those in the fight against cancer, has produced a seminal study that ... HRA will release top-line findings in a webinar, Defining Compassionate Care Through the ...
(Date:2/23/2017)... ... , ... CALNOC, the nation’s first and only nursing quality indicators database today ... Value and Collaboration – in Seattle, WA on October 23, 2017. , Dr. Gary ... in Seattle since 2000. In addition to his role at Virginia Mason, Dr. Kaplan ...
(Date:2/23/2017)... ... 23, 2017 , ... HealthPostures, the desk for standing designer headquartered in Prior ... to the Minneapolis Home and Garden Show which is being held February 24 through ... attention is the Minneapolis Convention Center. , From its broad line of sit ...
(Date:2/22/2017)... York (PRWEB) , ... February 22, 2017 , ... ... entrance and lobby of a new healthcare contact center in Georgia, PENETRON Specialty ... One of the nation’s largest healthcare systems recently invested $51 million to purchase ...
(Date:2/22/2017)... ... February 22, 2017 , ... Stem cell therapy ... The technology is so cutting edge, in fact, the U.S. Food and Drug ... procedures. However, successful patient outcomes in certain clinical stem cell procedures have shown ...
Breaking Medicine News(10 mins):