The rising tide of drug expenditures has fallen out of the limelight in the past several months as other more dramatic issues, such as Merck's
Containing this expansion has become a major business for Express Scripts and its competitors such as MedcoHealth Solutions
All of this has not escaped the notice of traditional pharmacy operator Walgreen
Walgreen's expansion of its mail-order presence should be a welcome sign to investors. Certainly, Medco, Express Scripts, and other PBMs are well entrenched, and competition for clients will be intense. But Walgreen could have something of an edge. PBMs are largely invisible to benefit plan participants. Still, consumers are generally more comfortable with a name they know and trust, especially when it comes to their health. This is a fact corporate customers also are likely to recognize. With a strong brand and a brick-and-mortar presence, Walgreen's potential in mail order looks good.
Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.