The Honorable HerbKohlChairman,Subcommittee on Antitrust, Competition Policy, and Consumer RightsU.S. SenateCommittee on the Judiciary224 Dirksen SenateOffice BuildingWashington, DC20510
Dear Senator Kohl:
Onbehalf of American taxpayers, I write to urge you and your colleagues on theSubcommittee to consider fully supporting the Express Scripts-Medco HealthSolutions merger. This merger will permitthese industry leaders to pursue greater savings on prescription medicines forpatients, employers, and taxpayers.
As you may know, NTU’s mission onbehalf of fiscal responsibility and economic freedom has long includedadvocating for sensible federal regulatory policies toward mergers andcompetition, in sectors ranging from software to telecommunications to health care.Our experience tells us that an Express Scripts-Medco Health Solutions mergerwould result in benefits to consumers and the economy.
Itis clear that cost issues surrounding prescription drugs can only be addressedthrough an open and competitive marketplace, despite the intentions of ongoinggovernment-directed efforts to impact their prices. Uniquely in the health care industry, pharmacybenefit managers (PBMs) lower prescription drug costs and improve safety bymanaging drug benefits for many private and taxpayer-funded health insuranceplans.
PBMshelp control drug spending by leveraging purchasing power when negotiating withdrug manufacturers – both brand andgeneric – and pharmacies for the fairest prices for their clients. Also, by evaluating incoming patientprescriptions for adverse drug interactions, availability of less-costly,medically-appropriate generic medications, and through the useof other clinical and economic tools, PBMs safely reduce drug-related spending fortheir clients. These efforts have had atremendously positive impact on our health care system overall – 50 percent ofwhich is supported by taxpayer dollars.
Governmentinterventions, whether through imposition of unnecessary regulations orinterruption of industry evolution, would severely compromise the ability ofPBMs to introduce more efficiency and safety in the provision of prescriptiondrugs to millions of employer-sponsored insurance beneficiaries. Especially during this time of major economicand fiscal uncertainty, we cannot afford to unnecessarily pay more forprescription drugs.
Becausethe PBM industry is so competitive, market participants have developed distincttools and methods for achieving savings and providing quality care for clientsand their beneficiaries. The proposedmerger between Express Scripts and Medco Health Solutions would then combinethe best practices of each company to further empower patients with greater andsafer prescription choices and savings.
Impedingthe merger of two companies that have been hugely successful in lowering costssends a message to the health care industry that government leaders continue tobelieve they know best how to address the problems facing our health caresystem. I hope you and your Subcommittee colleagues willconsider supporting real health care reform –represented in the form of thismerger – that wouldn’t cost taxpayers one cent to enact.
Sincerely,
Duane Parde, President
Cc: Ranking Member Lee andMembers of the Subcommittee on Antitrust, Competition Policy, and ConsumerRights