Shareholders approved the CVS/Caremark merger, ending the battle with Express Scripts. What it means for consumers may not be much:
Robert M. Hayes, a consumer advocate and former antitrust lawyer, called the merger a “natural business move given the concentration in the entire pharmaceutical, manufacturing distribution and purchasing business.”
But he questioned whether any cost savings will get passed to consumers. “This kind of merger doesn’t naturally lead to lower consumer costs even if the merged company can buy drugs more cheaply,” said Hayes, president of Medicare Rights Center in New York.
This is what concerns me the most. After the executives and shareholders get the big payoffs promised as part of the deal, the future will be bigger profits in the pockets of the haves, and less money in the pockets of the have-nots. It doesn’t have to be that way — merging a PBM with a storefront pharmacy operation could mean nice consumer savings, but given Caremark’s past history, I’m doubting it.
Bonus Link: Why I think PBMs should be off the table in any debate about healthcare reform.
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