BESSEMER, Ala., June 30, 2022 /PRNewswire/ — According to a letter sent today by American Pharmacy Cooperative, Inc. (APCI) to the US Department of Justice and the Federal Trade Commission.
In its letter to the agencies, APCI not only opposed the proposed acquisition, but also called for a review of the Medicaid organization Managed Care Centene’s acquisition of Magellan in 2021 and its decision to discharge the PBM in such a short time.
In the 13-page letter, the director of health policy and general counsel of the APCI Greg Reybold wrote:
Simply put, acquiring Prime is likely to create more conflicts of interest, reduce competition, and lead to greater inefficiencies in an already inefficient and flawed system. Rather than allow this merger to proceed, the agencies would do well to use their authority not only to stop this proposed acquisition, but also to investigate the premises of Magellan Health’s acquisition by Centene and determine whether it is appropriate to unravel this merger in light of Centene’s past. behavior on the PBM space combined with the proposed divestiture seemingly in contrast to the reasons given for its acquisition in the first place.
“We have seen time and time again how these PBM acquisitions and mergers have proven to be detrimental to patients, taxpayers and small businesses,” said Tim Hamrick, Director General of the APCI. “We urge the FTC and the Department of Justice to give this proposed merger long and careful consideration and to do what is right not only for patients and our member pharmacies, but for all Americans.”
“The largest PBMs in the United States have created a problem with pricing and access to prescription drugs,” Reybold said. “Six PBMs handle more than 95% of the prescription claims market, and we continue to see rising prescription prices and reduced access to life-saving drugs for patients. While these intermediaries claim to bring gains market efficiencies to the prescription drug chain, the reality is market integration of PBMs has increased prices and had anti-competitive effects.”
About the APCI
APCI is a member-owned cooperative of more than 1,600 member pharmacies in 30 states. Founded in 1984 and based in Bessemer, Ala.APCI is proud to lead the fight for prescription drug pricing transparency and reform.
SOURCE American Pharmacy Cooperative, Inc.