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Express Scripts-Medco Deal Showcases New Post-Health Reform Reality

Executive Summary

Express Scripts' merger agreement with Medco Health Solutions to form a mega-pharmacy benefits manager fits the new realities of the post-health care reform world. Together, the two PBMs managed more than 1.7 billion prescription claims for approximately 135 million individuals in 2010; thus, the tie-up, which was announced July 21, creates an entity that dominates the PBM space by a wide margin, with CVS Caremark the only other major competitor.

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