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Consolidation, lawsuits: mail-order Rx numbers may be on the rise.(Practice Trends)
The recent consolidation among pharmaceutical benefit managers may mean more mail-order prescriptions in physicians' futures, several experts said.
"Doctors will clearly notice they're writing prescriptions for longer duration, which is indicative of mail order," said Sean Brandle, a vice president at Segal Co., a New York consulting firm. "There are deeper discounts offered by [pharmaceutical benefit managers (PBMs)] for mail order versus [buying] retail."
The PBM world moved a bit closer to consolidation last fall, when Caremark, a Nashville-based company with approximately 25 million subscribers, agreed to buy Irving, Tex.-based AdvancePCS, with about 70 million subscribers, for $6 billion. This transaction, if approved by the Federal Trade Commission, will reduce the number of major PBMs from four to three. The Caremark deal was preceded by the Merck & Co. announcement in late August that it was spinning off its Franklin Lakes, N.J.--based Medco Health Solutions PBM subsidiary.
According to Caremark, the merger with AdvancePCS will "join together two highly complementary organizations in the competitive business of providing pharmaceutical and health improvement services to both the public and private sectors."
Pharmacist groups don't see the merger in such a positive light.
Even before the merger announcement, the National Community Pharmacists Association (NCPA) and the Pharmacy Freedom Fund (a coalition of independent pharmacy owners) sued Medco and AdvancePCS in federal court, alleging that the PBMs "have illegally reduced or eliminated competition on price, service, and consumer choice," according to an NCPA statement. Added John Rector, NCPA's senior vice president for government affairs, "There is virtually no competition among big PBMs. They have a renewal rate of about 96%, virtually no client turnover, and 3- to 5-year contracts."
The association opposes the Caremark-AdvancePCS merger.
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...benefits management companies (PBMs) have a conflict of interest...pharmacies is the focus of a Federal Trade Commission study. PBMs are expected to be a key mechanism...have frequently criticized PBMs. Those pharmacies, particularly...
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- PBMs, chains work to improve relationship,.
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- Study eyes PBMs and dispensing of Generics.(Focus)(pharmacy benefits management)
- Magazine article from: Chain Drug Review August 30, 2004 700+ words
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- Magazine article from: Medical Marketing & Media Gray, Michael September 1, 1995 700+ words
...study has revealed dissatisfaction with PBMs from a remarkably wide range of their consumers...has broadened the nature and functions of PBMs. It is still too early to assess the impact of the purchase of PBMs by large drug companies. In the constantly...
- PBMs get new role; Seen as key to drug cost control under new benefit.(ABCDs of...
- Magazine article from: Modern Healthcare Becker, Cinda December 22, 2003 700+ words
...bearing, direct-to-consumer businesses. PBMs manage the prescription drug benefits for...radar screens of consumers. Four national PBMs-AdvancePCS, Caremark Rx, Express Scripts...in September announced plans to merge. PBMs manage about two-thirds of the nation...
