Category Archives: Economy
The Problem with Pharmacy Consolidation
Recently, there was an excellent op-ed on the Express Scripts/Medco Health Solutions merger by Steven Pearlstein in The Washington Post. I have been covering the potential hazards that this merger would have not only on local community pharmacies, but on the consumers. Pearlstein really outlines why this merger, and in particular, why the merger of two large entities can have a negative impact.
With the merger of Express Scripts/Medco Health Solutions, you would have one major pharmacy benefit management company, who would make the small community pharmacies face the pressures from big retailers and the PBMs. Pearlstein noted:
The independent pharmacists have good reason to be concerned — because of competition from the big retail chains and the PBMs, they’ve become an endangered species. Some of this is the result of competition that is thuggish and unfair and results in inferior and less-convenient service for customers. But some of it reflects the hard economic reality that mail order is a cheaper and more efficient way to fill prescriptions and scale is important when negotiating prices with patent-wielding monopolists in the pharmaceutical industry. Over time, we will miss them the way we miss the local ice cream parlor and dressmaker.
The other issue that arises from this merger is the fact that consumers will not receive the care and attention that the pharmacists at the local pharmacies provide. Many of these pharmacists know their customers and their medical backgrounds, especially in terms of which medication interferes with another.
Will the consumer be able to benefit from this merger without having to pay more? Pearlstein noted that it would all have to depend on the competition of other regional PBMs. With Express Scripts and Medco (two of the larger PBMs) merging, this will reduce the price competition, thus causing the prices to rise.
This merger is a bad idea, and one that could be detrimental to many who use local pharmacies and those who own them. Perhaps, it is time for the Federal Trade Commission to wake up and stop this merger.
Protect our Community Pharmacies
Business mergers are not uncommon in today’s society. Sometimes they are for the best, and other times they negatively impact consumers and businesses. A proposed merger is likely to devastate community pharmacies and those who benefit from their services. Recently, two pharmacy benefit companies, Express Scripts, Inc. and Medco Health Solutions, Inc., announced that they will be merging in July, with a final transaction closing in the first half of 2012. This would create a company that would have excessive market power that would have the ability to squeeze the already burdened health care system for its own profits at the expense of patient choice.
Additionally, this merger would leave fewer choices for employers seeking cost savings for their health care plans. It would also mean fewer choices for those who rely on local pharmacies to fill their prescriptions, as they would have to travel further to fill their prescriptions or be denied the opportunity to have face-to-face access with their pharmacists. Patient choice would be severely limited under this merger, as those who relied on going to a community pharmacy to fill their prescriptions would be forced to have them filled by Express Scripts/Medco.
The Express Scripts/Medco merger will also have a significant impact on those receiving Medicare Part D benefits, as this would limit competition between pharmacies and the mail order company. This would increase pharmaceutical prices, which would drive up the costs for those receive state aid.
Why should consumers have to pay for an increase in bad service? Express Scripts is a mail order company, and it does not value the relationship between consumers and pharmacists. Congress and the Federal Trade Commission should stop this merger that will be unfair to local pharmacies and health care providers. This merger will further dilute the quality of patient care, while restricting their access to receiving medicines from the pharmacy of their choice. You can learn more about this and sign a petition against this merger by clicking here.
Refusing Bailout Money, Ford Proves to be Tough in Troubled Times
Times have been tough for the automotive industry over the past few years. While some have resorted to taking government bailouts to stay afloat, there has been one company, in particular, that has changed their business strategy and relied on innovation to push ahead. Ford Motor Company did not take any money from the government, and they have profited from this move by placing more of an emphasis on innovation and marketing. One marketing approach has been their ads, which focus on real Ford owners saying why they have purchased from the company. The below ad features a new F-150 owner, Chris, who purchased his truck for the fact that the company was not bailed out by the government.
His name is Chris. After he sits down the “reporters” bark “Chris, Chris.” One asks him to explain why “was buying American important to you.”
Sitting and looking sincere and serious, Chris says: “I wasn’t going to buy another car that was bailed out by our government. I was going to buy from a manufacturer that’s standing on their own: win, lose, or draw. That’s what America is about is taking the chance to succeed and understanding when you fail that you gotta’ pick yourself up and go back to work. Ford is that company for me.” [
Source]
Now, why would I focus on Ford so heavily? Maybe, it is because I am biased. My father was a former Ford mechanic and I drive a Ford, which I love due to obvious reasons. Another reason is that taxpayers will be losing money to the government bailout of GM and Chrysler at the tune of $14 billion, and this is not chunk change by any means. It is not the government’s role to bail businesses or industries out when they are failing, rather it is up to the CEOs of the organizations to refresh their business strategies and focus on new ideas that will appeal to their consumer base.
Cross posted at Bearing Drift
Starbucks CEO: America is 'Drifting Towards Mediocrity'
I have a confession to make: Starbucks rocks! Despite the fact that Starbucks is a liberal bastion for the most part, there are times when Starbucks CEO Howard Schultz actually makes sense. Recently, in an ABC News interview, Schultz urged people to boycott campaign contributions through his campaign, UpwardSpiral2011, and for business leaders to help get the country out of its “crisis of confidence” by creating jobs, as well as increasing consumer confidence. Schultz wants the national deficit reduced and said that businesses will not invest in America due to the debt ceiling.
Click here to watch the video.
I agree with Schultz. It’s time for business leaders to take the initiative to create jobs and not rely on the government to do this for them. In fact, Schultz made another point worth considering that both the Obama Administration and Congress doesn’t understand the urgency of addressing the debt and are forgetting that we are still in a crisis situation, especially when it comes to unemployment.
Cross posted at Bearing Drift
Remy says, "Raise the Debt Ceiling"
This is a pretty awesome rap, and a great way to sum up this debt ceiling bs.
If I were Speaker of the House…
I would issue an ultimatum to President Obama. First, Mr. President, we need to stop spending on wasteful programs, and we can do this by eliminating some unnecessary departments by giving control back to the states. We don’t need the Department of Education, as the states can do more by regulating their own education system and increasing teaching standards, etc. Another department to eliminate would be the Environmental Protection Agency. Once again, the states can handle the regulating the environmental standards. (Oh boy, I am waiting for BSC responses from this idea or those calling me out for such a ludicrous idea.)
If you eliminated the Department of Education and the Environmental Protection Agency, you would save a total of $78.5 billion (Source: U.S. Dept. of Education and EPA Budget). This would bring more money back to help the deficit.
Perhaps, it is time for the President to consider the solution at hand here. Unfortunately, I know this is not going to fly, since President Obama and the Democrats in Congress believe in expanding the size of government without thinking about the costs that come with the decision. At this point, no deals are being made, so I think we should head towards default. I mean we are headed that way regardless of what Congress or President Obama says in a flashy press conference or not.
U.S. Economy Grows Despite the Debt Ceiling Debate
While the debt ceiling debate continues in Washington, the U.S. Economy continued to grow at a slow rate. We should be celebrating, right? Things are looking up. Before you break out the champagne and fireworks, you might want to consider that the GDP (gross domestic product) only grew by 1.3 percent. While 1.3 percent is better than a decline, there are some factors to consider. According to The Wall Street Journal, the meager increase was caused due to a lack of consumer spending, and the reduced expenditures are only going to continue due to the rising rates of inflation and the increased prices for basic commodities, such as food and energy. The GDP will continue to experience these hardships, as many consumers have to prioritize their expenditures.
Another reason why the GDP is experiencing slow growth is due to the rise in unemployment numbers. Currently, the Bureau of Labor Statistics reports that unemployment is at 9.2 percent. This number is expected to increase, as many companies are cutting back their workforce to stay afloat in this economy.
In light of the meager economic growth, one has to wonder if this trend will continue. I would guess that the economic growth will tank before real growth occurs.
Cross posted at Bearing Drift
Economic Freedom and the Quality of Life
Economic freedom produces many societal benefits. Watch this video and find out what economic freedom is and its impact on society.
