Pharmacy Benefit Manager (PBM) Merger Will Mean Higher Prices, Fewer Pharmacy Choices

(Alexandria, VA) — The 60 Plus Association (60 Plus) announced today that it strongly disagrees with the Federal Trade Commission’s (FTC) decision allowing the proposed merger between Express Scripts, Inc. (ESI) and Medco Health Solutions, two pharmacy benefit managers (PBMs) that administer prescription benefits for many health plans, including some Medicare Part D plans. 60 Plus is a non-partisan seniors advocacy group, with over 7.1 million supporters.

The organization said the ruling would result in seniors paying higher prices for prescription drugs and having fewer pharmacy choices.

“We strongly object to the FTC ruling allowing these PBM companies to merge; the Commission should have done much more to protect consumers, especially seniors, from its harmful effects, including higher prices and fewer pharmacy choices,” said Jim Martin, 60 Plus Association Chairman.

In a letter sent to the FTC earlier this year, 60 Plus expressed concerns that a combined ESI/Medco will control prescription drug benefits for more than 100 million Americans, and more than 50 percent of several important components of the pharmacy market, including specialty pharmaceuticals and mail-order. The group said this level of monopolistic control will eventually result in higher prices for all consumers and decreased access to the local community pharmacists that many seniors rely on.

Martin emphasized that “seniors tend to have more chronic conditions and take more medication than other age groups, and are especially sensitive to changes in the pharmaceutical-drug sector of the health market. Seniors rely on local pharmacists for information, advice and counseling about their medications and possible side effects and drug interactions. Without this one-on-one counseling from a trusted pharmacist, some seniors will experience adverse drug reactions and health complications.

“When seniors lose access to community pharmacies because those pharmacies are no longer part of a PBM network, or when they are forced into a mail-order program, their health and safety is at risk,” Martin continued. “Seniors should not lose access to important health services like flu shots, pharmacy counseling, and preventive health screenings by PBM fiat. Unfortunately, the FTC ruling makes it more likely that will happen.

“60 Plus strongly supports free enterprise, consumer choice and the well-being of seniors. We believe the ESI/Medco merger gives two players in the PBM industry an unfair advantage in market share and setting prices. The result: higher prices, loss of pharmacy choices and lower-quality services for seniors.”

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