Pharmacy Benefits Manager Express Scripts Holding Co. announced its biggest customer Anthem would let its current contract expire in 2019, Bloomberg reports.
Here's what you should know.
1. Anthem made up 16 percent of the prescriptions Express Scripts processed last year and was responsible for 31 percent of the company's earnings before interest, taxes, depreciation and amortization.
2. Anthem sued Express Scripts for approximately $15 billion, saying Anthem was being overcharged by approximately $3 billion a year, and that Express Scripts wasn't passing along discounts to Anthem.
3. Express Scipts CEO Tim Wentworth said in an investor call that the company didn't have $3 billion to give to Anthem from pricing concessions.
“This is the point we’ve made since the figure was first stated by Anthem in January of 2016, at a time when we earned less than $2 billion on Anthem’s business the prior year," He added. "We're moving on. That's the message you should get from today."
4. Express Scripts shares fell from $67.25 on April 24 to $58.16 at 9:34 a.m. April 25.
More articles on coding, billing and collections:
Republicans push forward healthcare bill before Trump's 100th day in office
Lumeris acquires Forecast Health: 3 key notes
The 4 secrets to scaling your business