States consider filing suit to stop merger of pharmacy benefit management companies
POSTED: Sunday, April 1, 2012 - 5:00am
UPDATED: Sunday, April 1, 2012 - 5:04am
NATIONAL NEWS — Multiple state attorney generals are considering filing a suit to stop the merger of two pharmacy titans.
Among the states filing suits are New York, Pennsylvania, Ohio, Texas and California.
This call to action was caused by the announced plan for ESI and Medco, two pharmacy benefit management (PBM) companies, to merge in a $29 deal that is currently being reviewed by the FTC to determine whether it complies with antitrust law.
If they merge, it is speculated that they will have a virtual monopoly over the market. This would lead higher health care cost and limiting access to less expensive generic drugs and vital pharmacy services.
Representative Glenn Thompson of Pennsylvania has also express about the merger in a letter to the Federal Trade Commission (FTC), raising questions about the impact it would have on Pennsylvania’s rural communities specifically.
The merger has been investigated by the House Judiciary Subcommittee on Intellectual Property, Competition and the Internet and the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights. The FTC will soon determine whether or not the deal will move forward.