Nationwide Coalition Applauds Request for Hearing to Investigate Mega-PBM Merger

WASHINGTON, Jan. 23, 2012 /PRNewswire/ --The Preserve Community Pharmacy Access NOW! (PCPAN) coalition today applauded Congressman G.K. Butterfield for urging Congresswoman Mary Bono Mack, Chairman of the House Subcommittee on Commerce, Manufacturing and Trade to conduct a hearing to review the proposed merger between Express Scripts, Inc. (ESI) and Medco Health Solutions, two pharmacy benefit management (PBM) companies.  Rep. Butterfield is a member of the House Energy and Commerce Committee and ranking member of the Subcommittee on Commerce, Manufacturing and Trade.

In a letter sent to Subcommittee Chairman Bono Mack, Butterfield says the proposed merger has the potential to threaten fair and adequate access to health care and pharmacy services for all Americans.  He requests the subcommittee hold a hearing to review the impact of the proposed merger – and any claims that the merger will generate cost savings for consumers – as soon as possible.

"I applaud Congressman Butterfield for taking steps to protect American patients and consumers by ensuring that this controversial merger is appropriately scrutinized," said former Congresswoman Eva M. Clayton, chairwoman of the Preserve Community Pharmacy Access NOW! (PCPAN) coalition.  "Approving a merger between Express Scripts and Medco that would lead to higher prices for lesser quality care would only make things harder for many Americans that continue to be in a vulnerable state as a result of the recent economic crisis.  I encourage Chairman Bono Mack to move forward with this request and investigate the deal as quickly as possible."

Last July, ESI and Medco announced a $29 billion merger agreement that could take effect as soon as early 2012.  An approved merger would combine two of the nation's three largest PBMs, giving the consolidated mega-PBM the unfettered ability to increase prices and reduce access to pharmacy services.  Elected officials including attorneys general in dozens of states, pharmacy service providers, consumer advocates, patient advocates and others have expressed concerns that approving this merger would result in increased costs for lesser quality health care.  This is of particular concern for America's lower-income, minority, rural and senior communities

Following are excerpts from Butterfield's letter:

"[C]community pharmacists have stated that 'this merger would further disrupt this marketplace, to the detriment of patients, true competition, and lower prices'… I would be troubled if this merger impacted the level of service or damaged the current system of pharmacy delivery of drug and drug care services." 

"Given the enormity of the proposed merger and its potential to threaten fair and adequate access to health care and pharmacy services for all Americans, our Subcommittee should carefully examine its true impact on consumers." 

The merger has been investigated by the House Judiciary Subcommittee on Intellectual Property, Competition and the Internet and the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.  The Federal Trade Commission (FTC) and attorneys general throughout the country will soon determine whether or not the deal will move forward. 

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)