Nationwide Coalition Thanks Rep. Butterfield For Raising Concerns About Mega-PBM Merger

WASHINGTON, Dec. 20, 2011 /PRNewswire/ -- The Preserve Community Pharmacy Access NOW! (PCPAN) coalition today thanked Congressman G.K. Butterfield (NC-01), member of the House Energy and Commerce Committee and ranking member of the Subcommittee on Commerce, Manufacturing and Trade for raising concerns about the recently proposed merger between Express Scripts, Inc. and Medco Health Solutions, Inc., two pharmacy benefit management (PBM) companies.  In a letter sent to the Federal Trade Commission (FTC) yesterday, Butterfield expressed concern that the market dominance that would result from an approved merger could force community pharmacies out of business and lead to an increase in prescription drug prices – things that would be felt disproportionately by elderly, poor and rural populations.  Butterfield asked that the FTC employ all possible resources to, "very carefully consider this proposed merger and its impact on especially sensitive consumers."

"Rep. Butterfield has a strong record of standing up for underserved communities in eastern North Carolina and across the country so I am not surprised that he has noticed and expressed concerns about this merger," said former Congresswoman Eva M. Clayton, chairwoman of the Preserve Community Pharmacy Access NOW! (PCPAN) coalition.  "Americans – particularly those in minority and lower-income communities – continue to be in a very vulnerable state as a result of the recent economic crisis.  Approving a merger between Express Scripts and Medco that would lead to higher prices for lesser quality care would only make things harder for a lot of people.  It would be a serious step in the wrong direction."

PBMs are the largely unregulated drug middlemen that manage prescription drug benefit programs for employers, unions, health plans and others.  Today, PBMs control the drug benefits of more than 200 million patients nationwide.  This number includes a diverse group of Americans such as Medicare Part D beneficiaries, servicemen and veterans who are TRICARE beneficiaries, and more.

Last July, the two PBMs 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

"It is no coincidence that Representative Butterfield and so many others have expressed concerns about this merger and asked the FTC to take a very close look," Clayton continued.  "I sincerely hope that the commissioners consider this and all of the questions and concerns being raised about this merger.  And in the end, I hope that they will oppose it."

The merger has been investigated by the House Judiciary Subcommittee on Intellectual Property, Competition and the Internet and will the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.  The Federal Trade Commission (FTC) will ultimately 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)