Express Scripts and CIGNA Under Review: U.S. Healthcare Industry Looks to Transform

LONDON, January 31, 2013 /PRNewswire/ --

The healthcare industry is preparing itself for sweeping reforms after the U.S. Supreme Court in June last year upheld President Obama's Affordable Care Act (ACA). The ACA will have a significant impact on all players in the industry from pharmacy benefit managers (PBMs) such as Express Scripts Holding Company (ESRX) to health insurers such as CIGNA Corp. (CI). StockCall has posted technical analysis reports on Express Scripts and CIGNA. Sign up today and access these reports for free at

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Impact on PBMs

Under the ACA, new reporting and regulations will come into effect for Medicare Part D plans and health plans taking part in state exchanges, who have their own PBM or contract with a PBM. However, the transparency requirements are not expected to have any material impact on PBMs. In fact, expanded coverage and launch of biosimilars are expected to benefit PBMs.

Indeed, PBMs stand to benefit the most from the reforms as they will manage expanded prescription drug insurance for plans sold through health insurance exchanges.

Express Scripts' Cautious Outlook

Although the ACA is likely to benefit PBMs in the long-term, in the near-term, a weak business climate and unemployment outlook remains a concern for PBMs. Back in November, Express Scripts Holding Company had said that the weak business climate and unemployment outlook would likely result in loss of some members, low use rates and higher demands from clients. Register today to download the free report on Express Scripts at

http://www.StockCall.com/ESRX013113.pdf

For the third quarter of 2012, Express Scripts reported net income of $391.4 million, or $0.47 per share, compared to $324.7 million, or $0.66 per share reported for the same period in the previous year. Sales for the quarter were $27 billion. Back in November, George Paz, Chairman and CEO of Express Scripts, said that despite near-term headwinds and a challenging macroeconomic environment, the company remains confident that it is well-positioned for continued growth.

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Express Scripts and CIGNA Under Review: U.S. Healthcare Industry Looks to Transform