The incoming CEO for Express Scripts wants to resolve a longstanding drug pricing dispute with its largest client that has morphed into a lawsuit, a confrontation that underscores the growing negotiating power for large insurers and questions Express Scripts' independent business model.
Anthem's public spat with Express Scripts has escalated into a lawsuit against the pharmacy benefits management company charging it with failing to pass on prescription drug savings.
While Anthem's pharmacy benefit manager, Express Scripts, says it is "fully committed to good faith negotiations" with the insurer amid a contract dispute between the two companies, its CEO questioned Anthem's claim of significant owed savings.
Major pharmacy benefit managers have increasingly been playing hardball with drugmakers as health insurers and policymakers express concern over the spiraling cost of prescription medicines.
In addition to adding to the insurance industry's wave of consolidation, the news of Anthem's deal to acquire Cigna also reinforced how much value the largest health insurers place in the pharmacy benefit management business.
Now that UnitedHealth's purchase of the pharmacy-benefit management company, Catamaran, is almost complete, company execs say that they're planning to create a next-generation pharmacy care business that's more integrated and member-focused.
Now that Aetna and Humana became the first two major health insurers to merge, many questions remain about how the two companies will combine their operations and what the deal will mean for the health insurance industry.
UnitedHealth Group Inc. will buy Catamaran Corp. for about $12.8 billion and merge it into OptumRx, its pharmacy benefit service, the company announced today. The deal will likely close in the fourth quarter of 2015.
Insurers in Medicare Advantage and Part D should evaluate their practices and relationships with pharmacy benefit managers to ensure better quality and member experience.
A Medicaid reform commission in Alabama mulls whether turning the drug program over to big-box chains, such as Wal-Mart, will cut costs, The Anniston Star reported.