Federal Trade Commission Review of Express Scripts/MEDCO Pharmacy Benefit Managers Merger

Resolution 11-11.4

WHEREAS, the California Democratic Party believes that health care is a human right and not a privilege and as such all Californians should have affordable access to health care, including pharmacy care which is among the most important and most easily accessed services in the health care system, and according to the National Community Pharmacists Association a proposed merger of 2 of the largest pharmacy benefit managers, Express Scripts Inc.(ESI) and Medco, would result in the combined company controlling more than 40% of prescription drug volume and 60% of mail-order prescription volume with the potential to reduce competition from community pharmacies, and that this merger could reduce competition; and

 

WHEREAS, pharmacy benefit manger companies serve a valuable role in restraining the price of prescription drugs by negotiating discounts with large pharmaceutical manufacturers on behalf of employers, unions, and consumers; and

 

WHEREAS, many Californians rely on community pharmacies for their medication needs as well as other preventative health services such as screenings and immunizations and community pharmacies provide an important, easily accessible source of care in medically-underserved areas of urban and rural California, and some community pharmacies fear they could be squeezed out by the potential mail-order emphasis of the new combined company, making those patients with limited English proficiency and in need of immediate medication especially vulnerable,

 

THEREFORE BE IT RESOLVED, that the California Democratic Party calls upon the Federal Trade Commission to determine whether the Scripts/Medco merger will have anti-competative effects on the market and

 

BE IT FURTHER RESOLVED, that copies of the resolution be forwarded to Democratic members of the California Congressional Delegation and the Federal Trade Commission.

 

Sponsor: Sunny Zia, AD 70

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Adopted by the California Democratic Party
At its November 2011 Executive Board Meeting
Crowne Plaza Hotel, Burlingame
November 20, 2011

 

 

 

 

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