Says PBMs’ flawed claims are “illustrative” of current practices and of future actions if anti-competitive and anti-consumer merger is allowed

The National Association of Chain Drug Stores submitted comments to U.S. Senator Herb Kohl (D-WI), clarifying misleading statements made by Express Scripts Chief Executive Officer George Paz and Medco Chief Executive Officer David Snow at a recent congressional hearing.

"One of the main arguments, Mr. Paz, for the merger, is that, combined, you'll be able to develop more innovation and new clinical tools and strategies for cutting costs.  And yet, we all know that innovation is the fruit of competition and that the more competitors, the more innovation and the better the consumer is served.  You seem to be making an argument to the contrary.  Have you come up with a new concept for how capitalism works?"

- Sen. Herb Kohl (D-WI), chairman of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, at a hearing today on the proposed merger of Express Scripts and Medco.  Chairman Kohl asked the question of George Paz, chairman and CEO, Express Scripts, Inc.

"It is notable that no large employer who privately expressed concerns to us wished to testify at today's hearing, often telling us that they feared retaliation from the large PBMs with whom they must do business," stated Chairman Herb Kohl (D-WI) at a hearing of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights today.

Emphasizes lack of evidence that PBMs pass on savings to consumers, employers and health plans; notes abundance of skepticism among consumer groups and public officials

Mike Bettiga, chief operating officer of NACDS-member Shopko Stores Operating Company, LLC, testified before the U.S. Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights on the proposed mega-merger of Express Scripts and Medco and its feared negative effects on health outcomes and patient and prescription drug costs. The subcommittee held a hearing on the controversial proposed acquisition in the pharmacy benefit manager (PBM) industry, titled “The Express Scripts/Medco Merger: Cost Savings for Consumers or More Profits for the Middlemen?”

Consumers Union and NACDS are among those quoted in a New York Times article published on the day of a Senate Judiciary subcommittee hearing on the proposed Express Scripts and Medco merger.  "Our concern is that a mega PBM would have tremendous power and control over what prescription drugs Americans can get, where they get them, and how much the drugs cost," said Don Bell, senior vice president and general counsel for NACDS.

The Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights has announced a hearing on the proposed Express Scripts and Medco merger.  The hearing - titled "The Express Scripts/Medco Merger: Cost Savings for Consumers or More Profits for the Middlemen?" - will be held December 6, 2011, at 2:30 p.m.

With news breaking that a Senate subcommittee is planning a hearing to further scrutinize the proposed Express Scripts and Medco merger, NACDS told Modern Healthcare: “We are very receptive and appreciative of the news that another hearing will be forthcoming, because we believe that the continued scrutiny of this mega-merger is appropriate and certainly in the best of consumers.” 

Bloomberg reports that U.S. Sen. Herb Kohl (D-WI), chairman of the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights, is planning a hearing on the proposed Express Scripts and Medco mega-merger.