LegitScript President Says Proposed Express Scripts and Medco Merger Fails Lemonade Stand Test
12/2/2011 1:24 PM
"On a scale thousands of times larger, the lemonade stand example illustrates the sort of anti-competitive, monopolistic behavior that could result from a proposed $29 billion merger between two pharmacy benefit managers (PBMs), Express Scripts and Medco," writes LegitScript President John Horton in a column
published today on Huffingtonpost.com.
In his column, Horton utilizes a combination of detailed statistics and simple examples to explain the ways in which reduced competition as a result of the proposed merger could harm consumers.
"If you're the only kid on the block selling lemonade during a hot August, you know you can charge a full dollar per cup; but once your neighbor starts selling the same thing for 75 cents, you're going to figure out a way to either drop your price or beat his quality," Horton writes.
"The proposed [Express Scripts and Medco] deal is currently under scrutiny by the Federal Trade Commission, which must ask: if approved, would US patients end up like thirsty neighbors in August, with prices and quality at risk?"