NCPA chief praises D.C. scrutiny of consolidation in health care industry

After the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights held a hearing on mergers and other consolidation in the health insurance industry late last week, National Community Pharmacists Association (NCPA) CEO B. Douglas Hoey released a statement.

“The Senate is right to hold this hearing to look into significant consolidation among health insurance companies," Hoey said. "It is an appropriate time for such a review, and we encourage lawmakers to also examine the effects of consolidation in the pharmacy benefit management (PBM) corporation industry.

“Independent community pharmacists and their patients are negatively impacted by the take-it-or-leave-it contracts imposed by PBM corporations that utilize their market dominance to avoid any meaningful negotiation," Hoey said. "This dynamic also fosters restrictions on patient medication access and choice of pharmacy, even when they are not in the best interest of health plan sponsors, such as employers and the government."

Hoey cited a recent House subcommittee hearing held to address these issues.

"Expert witnesses expressed to Congress their concern that PBM corporation consolidation may limit competition and may be ripe for review by regulators such as the Federal Trade Commission," Hoey said. "Congress and regulators alike should not take at face value the claims by the merging parties that consolidation will necessarily increase efficiencies and drive costs down.

"Moreover, any supposed merger ‘savings’ must be passed along to consumers," Hoey said. “NCPA will continue to closely monitor the rampant consolidation in the marketplace and to fight for patient choice and access, and the vital role of independent community pharmacists to health care."