The Small Business Majority, an advocacy organization that represents 28 million small businesses, said in a letter to the Federal Trade Commission (PDF) that Express Scripts' proposed $29.1 billion acquisition of Medco Health Solution is anti-competitive.
Small-business group opposes Express Scripts-Medco deal
Since Express Scripts announced plans to acquire Medco in July, groups representing independent pharmacies, chain drug stores, and consumers have spoken out against the deal, which would combine two of the three largest pharmacy benefit managers.
The acquisition would “significantly reduce competition in the PBM market, harm small-business opportunities, and thereby stunt job growth,” according to Small Business Majority's Nov 1. letter to FTC Chairman Jon Leibowitz.
The Sausalito, Calif.-based organization said the deal would allow Express Scripts and Medco to charge more for services and the price increases would harm small businesses that provide healthcare coverage to their employees. It also argues that the combined company could decrease reimbursement to pharmacies, as well as establish highly restrictive networks that would exclude retail and specialty pharmacies.
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