Here's what most of the people are telling their employees about the Express Scripts/Walgreens debacle.
Pharmacy Benefit Manager
As you are all aware, there is a contract dispute between our PBM, ESI, and Walgreens. As of today, they have still not reached an agreement on terms of Walgreens continuing to be in their network. If that dispute is not resolved by December 31, 2011, you will no longer be able to use Walgreens to fill your prescriptions. We looked a changing PBMs but were unable to secure a contract with as favorable pricing as ESI. We are hopeful that ESI and Walgreens will reach agreement as Walgreens stands to lose billions in revenue should they no longer be part of the ESI network.
Harry, the PBM's have been around since the 1980's there function or job was to get better pricing for Rx's from the retailer.. that you and I was paying a one time purchase!! This innovation of PBM's brought Millions of Patients to a retailer and saved Millions for your Insurance Company, that did pass some of these saving onto the payers,.. you and me..by not raising our yearly premiums. The PBM's also made sure that your Insurance Company paid your Pharmacy for the Prescription that you had just filled, a Winn for both parties.
Walgreens did own a PBM with the Current management in charge up until June of 2011, which they sold off. Because it never was successful in growth competing against Esrx, Medco, CareMark or the Hundreds of other PBM's out there. As big.yank, myself, Cmxgen and other posters and Financial Analysts who understand this Service sector have been pointing out, putting pills in a bottle should not have a basis cost of $100,000 for 300 to 350 bottles, before you pay for the pills Medication.
Harry if you think PBM's and Mailorder will fail, than you should reflect on how you receive a message today vs waiting for a letter to arrive at your home.