NEW YORK (AP) — Pharmacy benefits managers Medco Health Solutions Inc. and Express Scripts Inc. lobbied the government to approve their proposed $29.1 billion merger, but cut back on their total lobbying expenses in the third quarter.
The companies spent about $1.3 million combined, down from $1.4 million a year ago. Both said their lobbying activities included "advocacy surrounding proposed corporate merger." Express Scripts lobbied the Federal Trade Commission, which is reviewing the deal, and Congress, which is holding hearings on the potential implications of the sale.
The two companies announced in July that Express Scripts had agreed to buy Medco. If the deal is approved, the new company would be by far the largest pharmacy benefits manager in the U.S., about twice as large as competitors like CVS Caremark Corp. The FTC recently extended its review of the tie-up, although the companies said they expected the agency to take that step.
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Express Scripts and Medco say the deal will make the health care system more efficient and allow them to negotiate lower drug prices for consumers, but critics say it will reduce choice, hurt small pharmacies, and that savings for the new Express Scripts may not be passed on to consumers.
In addition to lobbying on their merger, both companies discussed antitrust laws, health care reform proposals that could affect the Medicare prescription drug benefit, generic drugs, pharmacy benefits management disclosure rules, and the prescription drug benefit for the Federal Employee Health Benefits Plan.
Medco's lobbying expenses decreased to $915,000 from $960,000 a year ago. Its other concerns included mail-order delivery of prescription drugs. Express Scripts said its costs fell to $380,000 from $430,000, and its other interests included tax rules and trade partnerships. The companies disclosed their activity in forms filed with the House clerk's office in October.
The companies lobbied Congress, the White House Office, the Centers for Medicare and Medicaid Services, the Department of Health and Human Services, the Department of Defense, the Department of Labor, the Federal Trade Commission, the Food and Drug Administration, the Government Accountability Office, the Congressional Budget Office, the Health Resources and Services Administration, the Internal Revenue Service, and the U.S. Trade Representative.
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