Pharmacy Groups File Antitrust Suits Against PBMs Medco, AdvancePCS

As expected, two groups representing pharmacy owners on Aug. 15 filed antitrust lawsuits against pharmacy benefit managers Medco Health Solutions and AdvancePCS, the Dallas Morning News reports (Yu, Dallas Morning News, 8/15). The groups, the Pharmacy Freedom Fund and the National Community Pharmacists Association, say the PBMs set artificially low payments to retail pharmacies; prevent them from competing with mail-order pharmacies by prohibiting pharmacies from dispensing more than one-month supplies of medications; and fix prices paid to pharmacies for generic drugs (Kaiser Daily Health Policy Report, 8/15). John Rector, general counsel for the NCPA, said the PBMs "coerce and steer insured persons to their mail-order companies and away from local pharmacies" to "monopolize the prescription marketplace." However, an official from Medco, which manages prescription drug benefits for 63 million people, denied any wrongdoing, adding that the company "takes great pride in effectively lowering the cost of medicines on behalf of our clients and members." A spokesperson for AdvancePCS, which manages drug benefits for 75 million people, said that the lawsuit is "without merit" and that the company will "vigorously defend against it" (Dallas Morning News, 8/15). The two pharmacy owners groups are seeking to certify the suits, which were filed in the U.S. District Court in Philadelphia, as class actions (Mulvihill, AP/Dallas Morning News, 8/15).