...Drug Pricing Debate The drug pricing debate has been revived as a high profile topic in this election cycle. Drug makers, notably Valeant Pharmaceuticals, have received the brunt of the scrutiny for substantial price hikes to boost profits. Health insurers and pharmacy benefit managers are taking a closer look at what should be expected for drug pricing as the value debate continues. The debate validates concerns about the longer-term maintenance of the industry's profitability. Fitch believes it is increasingly critical for companies to articulate a value proposition and demonstrate success executing that vision to avoid becoming a target of political scrutiny and pressure from payors and consumers. Health Insurer Consolidation Ramifications Not Immediate The for-profit hospital industry is well positioned with respect to the wave of M&A amongst the largest for-profit health insurers, but consolidation could have some important longer- term ramifications. M&A amongst health insurers is...
