PBM Integration: Economists Outline Benefits Of Mergers In Senate Hearing

18 Jul 2019

• By Grace Moser

Recent mergers between PBMs and insurers should address one long-term strategic objective of pharma – the recognition by payors of the value of biopharmaceutical products in relation to other medical costs.

Business group leadership concept as a merger and acquisition and corporate teamwork combining strengths as chess pawns forming a king crown cast shadow as a 3D illustration. - Illustration

The latest round of vertical consolidation in the pharmacy benefit management/health insurance sector is likely to offer some important benefits to consumers, a panel of economists suggested during a Senate Judiciary Antitrust/Competition Subcommittee hearing on mergers last month.

The recent combinations of CVS Health Corp./Aetna Inc. and Cigna Corp./Express Scripts Holding Co. were generally...