The purpose of this paper is to present the case that the difference in profitability between Wellpoint's PBM business and other PBM operations stems more from differences in business models than from differences in the efficiency of operations. And Express Scripts is paying a premium for...

The roll out of the new Medicare drug benefit program has renewed the debate about who is best at negotiating drug rebates with pharmaceutical manufacturers (“Pharma”). Those who favor the Federal government point to statistics showing that Medicaid gets significantly better rebates than...