Blog Archive

Blog Archive

Friday, January 6, 2012

postheadericon FTC should block proposed Express Scripts-Medco merger

The perfect example of the law of unintended consequences can be found in the 7 million acres from Texas to Washington DC that is covered by Kudzu vines. During the dustbowl days of the Great Depression, one of the biggest challenges facing the country was soil erosion. In an attempt to address this problem, the Soil Conservation Service advocated the widespread planting of kudzu, an imported vine that would cover the ground quickly, preventing further soil loss.

However, while the kudzu did help stop the soil erosion, it also created another problem altogether. Kudzu vines, which can grow up to one foot per day during the warm season, spread throughout much of the Deep South and currently inflict up to $500 million in damages annually to forests alone.

Today, another unintended consequence is happening in the healthcare industry. Although most people have never heard of pharmacy benefit managers (PBMs), they are making health care decisions that aff! ect the lives of well over 100 million Americans. PBMs were initially hired by companies to manage prescription drug plans and control costs. The entities that were originally hired to help manage prescription plans are now extracting so much profit and distorting the markets so thoroughly that they have become the kudzu of the healthcare industry.

Read more...

0 ความคิดเห็น: