George Paz, Express
Scripts: Combining Express Scripts and Medco Health Solutions Will Help
Protect Americans From the Rising Costs of Prescription Medicine
December 13, 2011
Appearing before the Senate Judiciary Subcommittee on Antitrust,
Competition Policy and Consumer Rights, Express Scripts chairman,
president and CEO George Paz and Medco chairman and CEO David B. Snow,
Jr., offered the following insights and observations in their prepared
oral and written testimony:
George Paz, Chairman, President and CEO, Express Scripts:
"We will lower drug costs that are far too high and improve health
outcomes for consumers. As the big drug companies merge, as large chain
drug stores buy up their competition and demand higher prices, we must
become more effective representing the interests of plan sponsors and
consumers. Patients -- not profits -- must come first."
"As healthcare spending continues on an unsustainable trajectory,
pharmacy benefit managers have reduced drug costs by 30 percent or more
each year through innovative technology and products. These savings are
passed on to plan sponsors and consumers."
"Before a consumer ever receives their medicine, my company runs over
100 safety checks through our innovative advanced technologies. This is
critical because the PBM is the only one with visibility across all
pharmacies used by the consumer. Our systems identify and prevent
dangerous drug interactions across all of these pharmacies."
"Beyond wasteful prescription drug spending, waste includes unnecessary
hospitalizations, testing and treatment in costly emergency rooms. These
are very real problems with costs across the entire health system, and
PBMs are the most advanced partners to provide common-sense solutions."
"Express Scripts and Medco have complementary clinical capabilities to
serve all patient groups. By combining these offerings, we can pioneer
new drug safety systems, create new resources for public health, and
continue to advance evidence-based medicine to better serve our
"We are at the forefront of providing specialized care to patients with
chronic, complex diseases with medications that can cost tens or even
hundreds of thousands of dollars per year. Our specialty pharmacy
programs keep patients adherent to injectable and infusible therapies,
avoid more costly treatment settings, and improve the livelihood of our
"Simply and most accurately put, we are successful when our clients save
money through lower employer and employee health premiums and/or reduced
out-of-pocket costs, while at the same time enhancing safety and more
positive medical outcomes."
David B. Snow, Jr., Chairman and CEO, Medco:
"As the healthcare industry necessarily focuses on reducing costs; as
Congress seeks to find healthcare savings without compromising patient
care; and as all participants in the system are faced with the prospect
of doing more with less, we must make our healthcare dollars work more
effectively. We believe that the services that Medco and Express
Scripts, working together, will provide are critical to achieving this
"With the combined expertise and capabilities of Medco and Express
Scripts, we will be able to speed the pace of delivering value-added
solutions that address the pressing need to reduce overall costs and
raise the standard for quality care."
"The clinical programs designed by our pharmacists and nurses ensure
that we deliver the right medicine, in the right dose, to address the
right conditions, and then that those medicines are taken as prescribed
by the patient's physician."
clinical solutions keep patients healthier, out of the hospital, and on
the job -- and ensure affordable care is more accessible for all.
Combining these capabilities with Express Scripts' focus on improving
patient compliance will allow the collective impact we make to enhance
the quality of life for millions of patients and reduce overall costs to
the healthcare system."
"To succeed, a PBM must lower drug prices and improve the quality of
care for its clients and patients. The Congressional Budget Office has
estimated that PBMs reduce drug costs by as much as 30 percent. And as
validated in a recently released study, Medco and Express Scripts have
saved their clients and members up to $87 billion per year in total drug
spending, compared to what would have been spent in an unmanaged
"Combined, we can amplify our impact to reduce overall costs by
improving the quality of patient care. This will make American business
more competitive -- creating a healthier, more productive workforce,
preserving existing jobs, and creating new jobs in the future."
"We all know the future of healthcare belongs to those who deliver more
for less. The merger of Medco and Express Scripts is part of that
transformation of America's healthcare system."