Protect Community Pharmacies Receive Additional Support Against Express Scripts/Medco Merger
By Krystle Weeks | Thursday, November 10th, 2011 | Economics, PolicyOn Capitol Hill yesterday, the Preserve Community Pharmacies Access NOW! (PCPAN) coalition and other local groups joined with Reps. Joe Courtney (D-Ct.) and Thomas Marino (R-Pa.) to voice their opposition to the merger of Express Scripts, Inc. and Medco Health Solutions, Inc., two of the nation’s largest pharmacy benefits management companies. There is a push to urge Congress and the Federal Trade Commission to oppose the merger.
This merger could go into effect, if approved, in early 2012. Several elected officials, attorney generals of dozens of states, pharmacy service providers, consumer advocates, and patient advocacy groups have questioned the merger.
During their visit, the coalition expressed concerns that the merger would mean that the new mega-PBM would control the supply line of brand-name and generic drugs, as well as hurting health care quality and limiting access to community pharmacies driving prices through the roof.
Kelly Williams, past president of the Virginia Dental Hygienists’ Association said, “The merger would make it difficult for smaller community pharmacies to keep their doors open, resulting in reduced competition, and reduced competition means cost increases for the public.”
Joining Williams to express concern about the pending merger was William Towler, who owns Grove Avenue Pharmacy in Richmond. If this merger goes through, there would be a detrimental impact on Towler’s business and other small community pharmacies across the Commonwealth of Virginia.
Cross posted at Crystal Clear Conservative
Tags:
Contribute for Conservatism!
Share this post
About the author
Growing up in Maryland typically does not yield a Republican. Fortunately, Krystle Weeks was one of the lucky few booted to the Commonwealth for her staunch conservative views. From an early age, she has been debating politics, and since 2006, she has been involved here in the Commonwealth helping Republican candidates to victory. Aside from politics, Krystle is a runner and a dynamite cook. You can email her here. Krystle also blogs at Crystal Clear Conservative and Charm Offensive Cooking.
Comments
4 Responses to "Protect Community Pharmacies Receive Additional Support Against Express Scripts/Medco Merger"
Krystle,
I could not disagree with you more. Community pharmacies oppose this merger because it will lower drug prices to the consumer and to insurers, cutting into their profits. I am an Express Scripts customer through TRICARE and both I and the DoD already save significant amounts of money on my family’s prescriptions. With the cost of Medicare D skyrocketing and adding immeasurably to the exponental growth in entitlements spending, now is not the time for NIMBY interference by Congress in the free market.
Before we know it, community pharmacies will form a trade association and tax themselves $0.01 per prescription they fill to support an national organization that would support their industry.
What happened to free enterprise? Why should the government step in to protect one business type over another?
I don’t know about Medco, but Express Scripts is a home delivery, mail order pharmacy service only. So patients only use it for recurring medications such as cholesterol drugs. Express Script patients get non-recurring prescriptions filled at community pharmacies. The problem for community pharmacies is that the big mail service companies can negotiate much lower prices with the pharmaceutical manufacturers, similar to Wal-Mart. That forces the community pharmacies to lower their prices, out of profit, to compete. Presumably, when Express Scripts and Medco merge they will be able to get even lower prices because of the huge market they serve. And this is a bad thing how?
I’m a big believer in small business. My mom and dad put four kids through college running a family business and my older brother put three kids through college and grad school running the same business. But community drug stores can’t expect to be profitable at the expense of exponential growth in health care costs and in entitlement spending, something that is 10% of GDP right now and projected to double to 20% of GDP by 2050. Community pharmacies have other profit centers than just their pharmacy.
I have to make a correction. When you use TRICARE insurance at a retail pharmacy, the claim is processed for TRICARE by Express Scripts. The difference is that at a retail pharmacy you must pay the co-pay for every 30-day or less fill. Using the home delivery plan, you only pay the co-pay for each 90-day supply.
Leave your response
The comments section is for meaningful discussion. Readers are reminded to post comments that are germane to the article and write in a common language that steers clear of personal attacks and/or vulgarities.
Please take a moment to review our comment policy.