Merritt: ‘CVS Seeking to Undermine Employers’ Ability to Rely upon Mail-Service Pharmacies For Controlling Rx Drug Costs’

Analysis Finds Mail-Service Pharmacies to Save $100 Billion on Prescription Drug Costs over Next Decade

(Washington, DC)—Today’s announcement by CVS Corporation (NYSE: CVS) that it is dumping more than 140,000 consumers from its pharmacy networks simply because consumers and employers want access to more cost-effective prescriptions available at mail-service pharmacies is a short-sighted attack that will ultimately backfire, the Pharmaceutical Care Management Association (PCMA) said today. PCMA is the national association representing America’s pharmacy benefit managers (PBMs).

“With today’s announcements, CVS is seeking to undermine an important option employers rely upon in addressing prescription drug costs and improving access: the mail-service pharmacy option,” said PCMA President Mark Merritt. “At a time when employers are struggling to stretch scarce health care dollars, CVS has effectively told them that they should be paying higher prices for prescription drugs. CVS’ short-sighted effort to protect their ability to charge higher drug prices will ultimately backfire.”

The mail-service pharmacy option is an important avenue for consumers and employers seeking more cost-effective options for purchasing prescription drugs. Numerous data indicate that even deeper discounts are available through mail-service pharmacies than through the savings PBMs are able to negotiate with retail pharmacies. Consumers and employers will save nearly $100 billion on prescription drug costs over the next decade because of PBM mail-service pharmacies, according to PricewaterhouseCoopers. PBM mail-service consumers report high satisfaction on a wide range of measures, including condition of drugs received, ease of refilling prescriptions, and timeliness of drug delivery.

According to a recent Hewitt Associates survey of large employers, America’s businesses are relying on the very tools and techniques pioneered by PBMs to help manage their pharmacy benefits: multi-tier formularies, mail-order pharmacies, generic substitution, step therapy and many other common-sense approaches.

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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmacy benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.

Contact Information:
Phil Blando
202-207-3614