In the Q4 earnings call, Express Scripts (ESRX -0.2%) CEO Tim Wentworth says he has "never seen more misinformation and absence of facts about his company's role" related to drug prices.
“Drug makers set drug prices and we exist to bring those prices down” to ensure patients can access drugs they need and payers can afford them, and “we use every tool in our arsenal to do it."
PBM industry aggregates buying power and creates competitive market; allows smaller payers to enjoy same access to rebates as larger payers, “they all benefit."
89% of clients received rebates in 2016; 100% of the time clients make determination on how rebates are used.
Blaming ESRX, rebates for drug price increases is “uninformed and simply wrong. The questions that need to be asked, frankly, need to be asked of the drug companies."
On direct, indirect remuneration fees: “DIR fees we received are passed back directly to plan sponsors, reported to CMS and lower the cost of providing coverage. ESRX doesn’t see any financial effect if fees went away."