Express Scripts Incorporated
Encyclopedia
Express Scripts, Inc. is a Fortune 100
company headquartered in Cool Valley, Missouri
. It began in 1986 in St. Louis
, Missouri
as a result of a joint venture between a retail chain of more than 79 pharmacies (Medicare Glaser Inc.) and Sanus Corp. Health Systems. Express Scripts was purchased by New York Life Insurance Company
in 1989 and became a publicly traded company in 1992. Through expansion of its client base, product lines and several acquisitions (ValueRx, Diversified Pharmaceutical Services, and National Prescription Administrators (NPA)) Express Scripts currently employs over 13,000.
Express Scripts is a pharmacy benefit manager
. The company processes pharmaceutical claims for members at network pharmacies and at their own mail order
pharmacies. They provide services to manage drug
plans for government
agencies (both as administrator of employee benefits and public assistance programs), corporations, and unions
. One of their largest clients is the United States Department of Defense
's TRICARE
program.
in 1987 through the merger of Medicost, a small prescription drug claims processor and Health Information Design, a specialty drug utilization review company. The company was purchased by Value Health in 1988. After a series of mergers and acquisitions, ValueRx became the largest Value Health subsidiary, employing 1,400 people across the United States. Express Scripts purchased ValueRx on April 1, 1998.
On February 25, 2002, Express Scripts completed the acquisition of the assets of Phoenix Marketing Group (Holdings), Inc. Phoenix Marketing Group is the largest full-service prescription drug sample fulfillment provider in the United States.
In the first quarter of 2004 Express Scripts acquired CuraScript, Inc, a specialty pharmacy located primarily in Orlando, FL.
On October 14, 2005 Express Scripts Completed the Acquisition of Priority Healthcare and now has integrated the line of business with its wholly owned specialty pharmacy subsidiary CuraScript.
In late December 2006, Express Scripts made a proposal to purchase Caremark. Express Scripts lost the race to acquire Caremark to CVS Corporation
, which became CVS/Caremark Corporation on March 22, 2007.
In October 2007, Express Scripts acquired ConnectYourCare, and now handles FSA, HRA and HSA accounts for companies such as Suntrust, Zions Bancorp and Allegis.
On April 13, 2009 it was announced that Indianapolis
based WellPoint
had reached a definitive agreement under which Saint Louis based Express Scripts will acquire WellPoint's NextRx subsidiaries for $4.675 billion4
Express Scripts, the United States third largest PBM, closed the transaction in December 2009.
As of 2010, Express Scripts employed over 13,000 people. The corporate headquarters is located in Cool Valley, Missouri
with major North America
sites in Albuquerque, NM; East Hanover, NJ; Bensalem, PA; Bloomington, MN; Orlando, FL; New Castle, DE; Farmington Hills, MI; Harrisburg, PA; Pueblo, CO; St. Marys, GA; Tempe, AZ; Troy, NY; Mason, OH; Indianapolis, IN; Oldsmar, FL; West Hills, CA; Washington, DC Mississauga, Ontario
; and Montreal, Quebec.
state Attorney General
Elliot Spitzer filed a lawsuit
against Express Scripts alleging that the company had kept tens of millions of dollars in drug rebates owed to the state. The suit was filed in the state Supreme Court
in Albany County
.
The lawsuit further claimed that Express Scripts had overstated the cost benefits of switching to certain preferred medications. In 2008 the company settled the lawsuit, agreeing to pay $9.3 million to Pennsylvania and 28 other states to resolve claims of deceptive business practices. As part of the settlement, the company also agreed to change its business practices and pay up to $200,000 in reimbursement to patients.
stated that they had millions more of similar records and would release them if the company failed to pay an unspecified amount of money. Clients associated with the company also received similar threatening letters. A $ 1 million award was offered by the pharmacy benefits management firm for any information that would lead to the conviction of the individual or group.
By November, about 700,000 clients were notified that their information may have been compromised. A consumer class action lawsuit against Express Scripts was brought on by John Amburgy, a Missouri man who accused the company of negligence in protecting customer records. He also accused the company of breach of contract, breach of implied contract, and violations of data breach notification laws in various states. Amburgy claimed that due to the data breach, he and various others affected by the incident were at increased risk of identity theft and extortion. However, Amburgy failed to show how he was directly affected by the breach and the lawsuit was dismissed.
to "well known athletes and entertainers".
related to the pharmacy benefit, and conduct research into employee communications, health benefits design and health care delivery rooted in behavioral economics
.
Currently, the Consumerology® Advisory Board is engaging employees in pilot projects that explore healthcare purchasing and consumer behavior issues. The company states that the goal of these tailored programs is improved health outcomes and lower-cost care.
.
near the unincorporated
St. Louis County
community of Earth City
.
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company headquartered in Cool Valley, Missouri
Cool Valley, Missouri
Cool Valley is a city in St. Louis County, Missouri, United States. The population was 1,196 at the 2010 census.-Geography:Cool Valley is located at ....
. It began in 1986 in St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
, Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
as a result of a joint venture between a retail chain of more than 79 pharmacies (Medicare Glaser Inc.) and Sanus Corp. Health Systems. Express Scripts was purchased by New York Life Insurance Company
New York Life Insurance Company
The New York Life Insurance Company is one of the largest mutual life-insurance companies in the United States, and one of the largest life insurers in the world, with about $287 billion in total assets under management, and more than $15 billion in surplus and AVR...
in 1989 and became a publicly traded company in 1992. Through expansion of its client base, product lines and several acquisitions (ValueRx, Diversified Pharmaceutical Services, and National Prescription Administrators (NPA)) Express Scripts currently employs over 13,000.
Express Scripts is a pharmacy benefit manager
Pharmacy Benefit Management
In the United States, a Pharmacy Benefit Manager is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. They also are responsible for developing and maintaining the formulary, contracting with pharmacies,...
. The company processes pharmaceutical claims for members at network pharmacies and at their own mail order
Mail order
Mail order is a term which describes the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote method such as through a telephone call or web site. Then, the products are delivered to the customer...
pharmacies. They provide services to manage drug
Drug
A drug, broadly speaking, is any substance that, when absorbed into the body of a living organism, alters normal bodily function. There is no single, precise definition, as there are different meanings in drug control law, government regulations, medicine, and colloquial usage.In pharmacology, a...
plans for government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
agencies (both as administrator of employee benefits and public assistance programs), corporations, and unions
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
. One of their largest clients is the United States Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...
's TRICARE
TRICARE
TRICARE, formerly known as the Civilian Health and Medical Program of the Uniformed Services , is a health care program of the United States Department of Defense Military Health System. TRICARE provides civilian health benefits for military personnel, military retirees, and their dependents,...
program.
History
ValueRx was formed in Detroit, MichiganDetroit, Michigan
Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River...
in 1987 through the merger of Medicost, a small prescription drug claims processor and Health Information Design, a specialty drug utilization review company. The company was purchased by Value Health in 1988. After a series of mergers and acquisitions, ValueRx became the largest Value Health subsidiary, employing 1,400 people across the United States. Express Scripts purchased ValueRx on April 1, 1998.
On February 25, 2002, Express Scripts completed the acquisition of the assets of Phoenix Marketing Group (Holdings), Inc. Phoenix Marketing Group is the largest full-service prescription drug sample fulfillment provider in the United States.
In the first quarter of 2004 Express Scripts acquired CuraScript, Inc, a specialty pharmacy located primarily in Orlando, FL.
On October 14, 2005 Express Scripts Completed the Acquisition of Priority Healthcare and now has integrated the line of business with its wholly owned specialty pharmacy subsidiary CuraScript.
In late December 2006, Express Scripts made a proposal to purchase Caremark. Express Scripts lost the race to acquire Caremark to CVS Corporation
CVS Corporation
CVS Pharmacy, or simply CVS, is the second largest pharmacy chain in the United States , with over 7,000 stores in 41 states and Puerto Rico...
, which became CVS/Caremark Corporation on March 22, 2007.
In October 2007, Express Scripts acquired ConnectYourCare, and now handles FSA, HRA and HSA accounts for companies such as Suntrust, Zions Bancorp and Allegis.
On April 13, 2009 it was announced that Indianapolis
Indianapolis
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
based WellPoint
WellPoint
WellPoint, Inc. is the largest health plan company in the Blue Cross and Blue Shield Association. It was formed when WellPoint Health Networks, Inc. merged into Anthem, Inc., with the surviving Anthem adopting the name, WellPoint, Inc...
had reached a definitive agreement under which Saint Louis based Express Scripts will acquire WellPoint's NextRx subsidiaries for $4.675 billion4
Express Scripts, the United States third largest PBM, closed the transaction in December 2009.
As of 2010, Express Scripts employed over 13,000 people. The corporate headquarters is located in Cool Valley, Missouri
Cool Valley, Missouri
Cool Valley is a city in St. Louis County, Missouri, United States. The population was 1,196 at the 2010 census.-Geography:Cool Valley is located at ....
with major North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
sites in Albuquerque, NM; East Hanover, NJ; Bensalem, PA; Bloomington, MN; Orlando, FL; New Castle, DE; Farmington Hills, MI; Harrisburg, PA; Pueblo, CO; St. Marys, GA; Tempe, AZ; Troy, NY; Mason, OH; Indianapolis, IN; Oldsmar, FL; West Hills, CA; Washington, DC Mississauga, Ontario
Mississauga, Ontario
Mississauga is a city in Southern Ontario located in the Regional Municipality of Peel, and in the western part of the Greater Toronto Area. With an estimated population of 734,000, it is Canada's sixth-most populous municipality, and has almost doubled in population in each of the last two decades...
; and Montreal, Quebec.
Fraud allegations
On August 4, 2004, New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
state Attorney General
Attorney General
In most common law jurisdictions, the attorney general, or attorney-general, is the main legal advisor to the government, and in some jurisdictions he or she may also have executive responsibility for law enforcement or responsibility for public prosecutions.The term is used to refer to any person...
Elliot Spitzer filed a lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against Express Scripts alleging that the company had kept tens of millions of dollars in drug rebates owed to the state. The suit was filed in the state Supreme Court
Supreme court
A supreme court is the highest court within the hierarchy of many legal jurisdictions. Other descriptions for such courts include court of last resort, instance court, judgment court, high court, or apex court...
in Albany County
Albany County, New York
Albany County is a county located in the U.S. state of New York, and is part of the Albany-Schenectady-Troy Metropolitan Statistical Area. The name is from the title of the Duke of York and Albany, who became James II of England . As of the 2010 census, the population was 304,204...
.
The lawsuit further claimed that Express Scripts had overstated the cost benefits of switching to certain preferred medications. In 2008 the company settled the lawsuit, agreeing to pay $9.3 million to Pennsylvania and 28 other states to resolve claims of deceptive business practices. As part of the settlement, the company also agreed to change its business practices and pay up to $200,000 in reimbursement to patients.
Information Breach
in October 2008, the St.Louis headquarters received an anonymous letter that contained names, Social Security numbers, birth dates and some prescription information of 75 members. The cyberextortionistCyberextortionist
A cyberextortionist is an individual or group who uses email as an offensive force. The group or individual usually sends a company a threatening email stating that they have received confidential information about their company and will exploit a security leak or launch an attack that will harm...
stated that they had millions more of similar records and would release them if the company failed to pay an unspecified amount of money. Clients associated with the company also received similar threatening letters. A $ 1 million award was offered by the pharmacy benefits management firm for any information that would lead to the conviction of the individual or group.
By November, about 700,000 clients were notified that their information may have been compromised. A consumer class action lawsuit against Express Scripts was brought on by John Amburgy, a Missouri man who accused the company of negligence in protecting customer records. He also accused the company of breach of contract, breach of implied contract, and violations of data breach notification laws in various states. Amburgy claimed that due to the data breach, he and various others affected by the incident were at increased risk of identity theft and extortion. However, Amburgy failed to show how he was directly affected by the breach and the lawsuit was dismissed.
Illegal HGH distribution
On September 19, 2007, Specialty Distribution Services Inc., a subsidiary of Express Scripts Inc., under an agreement with federal prosecutors, agreed to pay a $10.5 million penalty and cooperate with ongoing law enforcement investigations for distributing human growth hormoneGrowth hormone
Growth hormone is a peptide hormone that stimulates growth, cell reproduction and regeneration in humans and other animals. Growth hormone is a 191-amino acid, single-chain polypeptide that is synthesized, stored, and secreted by the somatotroph cells within the lateral wings of the anterior...
to "well known athletes and entertainers".
Consumerology® Advisory Board
Express Scripts Consumerology® Advisory Board was founded to advance the company's understanding of human behavior and assist with the translation of this understanding to improve health outcomes. The Advisory Board tracks emerging findings from the allied fields of the behavioral sciences. This board consists of national academics with expertise in consumer behaviorConsumer behaviour
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups...
related to the pharmacy benefit, and conduct research into employee communications, health benefits design and health care delivery rooted in behavioral economics
Behavioral finance
Behavioral economics and its related area of study, behavioral finance, use social, cognitive and emotional factors in understanding the economic decisions of individuals and institutions performing economic functions, including consumers, borrowers and investors, and their effects on market...
.
Currently, the Consumerology® Advisory Board is engaging employees in pilot projects that explore healthcare purchasing and consumer behavior issues. The company states that the goal of these tailored programs is improved health outcomes and lower-cost care.
Headquarters
On June 8, 2007, Express Scripts opened its new world headquarters at the campus of the University of Missouri-St. Louis. The new building houses nearly 2,500 employees and is used concurrently with the former corporate site in the Riverport Business Complex, which is located in Maryland HeightsMaryland Heights, Missouri
Maryland Heights is a second-ring west-central suburb of St. Louis, located in St. Louis County, Missouri, United States. The population was 27,472 at the 2010 census. The city was incorporated in 1985. Edwin L. Dirck was elected the city's first mayor. Mark M. Levin has been City Administrator...
.
near the unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...
St. Louis County
St. Louis County, Missouri
St. Louis County is a county located in the U.S. state of Missouri. Its county seat is Clayton. St. Louis County is part of the St. Louis Metro Area wherein the independent City of St. Louis and its suburbs in St. Louis County, as well as the surrounding counties in both Missouri and Illinois all...
community of Earth City
Earth City, Missouri
Earth City, Missouri is an unincorporated community located in St. Louis County, along Interstate 70 near the Missouri River. It is bounded by the city of Bridgeton on the east and north, the city of Maryland Heights to the south, and the Missouri River to the west. It is also in proximity to...
.