Express Scripts “The Mega PBM” and Other Acquisitions

After an exhaustive review by the Federal Trade Commission over strong outcry from consumers and competitors alike, Express Scripts, Inc. was given the go ahead to acquire Medco for the bargain price of $29.1 billion.

This has resulted in the creation of the largest Pharmacy Benefit Manager (PBM) in history.

This new Mega Express Scripts PBM will now have control over 30% of the entire US PBM Market. As the company claims it will be able to lower its already low prices, many feel the o[posit will occur.

The now approved merger has also resulted in smaller; more flexible PBM’s to be invited to the table for RFP’s. Additionally, this merger has now opened up the door for many employer groups to get out of their existing contracts as many state attorney generals have already deemed that since the merger was approved, their contracts with Medco are null and void. Plan sponsors should rethink their Rx purchasing strategies going forward.

This has also spurred a merger-frenzy as other managers vie to purchase their former competitors.

AmWINS Rx, one of the country’s highest rated PBM’s is actively participating in come very significant RFP rounds. Unlike a behemoth like Express Scripts, we have better maneuverability, allowing us to customize plans to meet the unique needs of our plan sponsors, and not force plan sponsors to conform to what we want.

If you are in (or about to enter) an RFP, please feel free to contact me directly at 401-734-5963 or via email at marc.gilday@amwins.com to discuss how we can help.