FLASHBACK- Advance PCS, kickbacks,trade secrets, transparency-Nancy speaks

Well, let's see. Nancy, Warren Co. RTA, and all STRS retirees were "shot down" in their efforts to view the details of a STRS/PBM contract due to "trade secrets!" The PBM, at that time, was Advance PCS (now Caremark). Now comes the Medco/STRS trial to a jury in a Hamilton County Common Pleas courtroom. In both instances, STRS retirees "got the shaft." For the first time (by my knowledge) we retirees and the whole world will get a chance to view some of the "dirty little contract secrets" of a PBM contract in the light of day- before this, ALL PBM suits were settled out of court at both the federal and state levels. I have a hunch that what we see will make one sick to one's stomach, BUT, at least we will get a chance to see some of the contract documents. This current Hamilton County case is and will be a landmark in PBM litigation.

Should Medco lose this round, you can bet your bottom dollar they will appeal this decision all the way to the U.S. Supreme Court. They will have the backing of millions of dollars for attorney fees from Big Pharma to continue this battle for years down the road. Below is a letter (2 months ago) that discusses the trials and tribulations that Nancy Hamant and Warren County RTA had with STRS and Advance PCS (now Caremark). There are parallels to the current Hamilton County STRS/Medco trial- only this time, STRS will finally fight tooth and nails for retirees- their reputation and inability to protect retirees from unscrupulous practices is finally on the line. The attorneys hired by the State of Ohio to represent STRS will stand to reap millions of dollars in fees for a victory against Medco- and they should. With the advent of the JURY TRIAL in Hamilton County, we are finally seeing something that I never dreamed we would see. This time around, we will finally see STRS "let it all hang out!" I really got a kick out of today's Cincinnati Enquirer (11-15-05) quote which states, "Although Hokanson said the system (STRS) had suspected that Medco was earning manufacturer rebates OFF THE BACKS OF RETIRED TEACHERS, she said it wasn't until 2001 that Medco admitted it." A sad commentary, isn't it?

Isn't it about time that the State of Ohio consider another way of purchasing and dispensing Rx to millions of its active and retired citizens? ??

John, a PROUD CORE member
BELOW IS THE FLASHBACK ARTICLE RE. NANCY HAMANT, STRS, ADVANCE PCS, AND REBATES (a politically correct term for kickbacks)

----- Original Message -----

From: John Curry

To: John Curry

Sent: Wednesday, September 14, 2005 5:37 PM

Subject: Advance PCS, kickbacks,trade secrets, transparency-Nancy speaks

Nancy has been there-done that. She took Advance to court and the issue was dismissed due to "trade secrets" which keeps the inner workings and bookkeeping of the PBM's a secret. IE, they can put the screws to not only retirees, but also to STRS. You might ask, how can they do this, it's state agency monies they're getting for a product? It is a practice all over the U.S. How are they allowed to get away with this? Well, I'll tell you. The U.S. Senate and House haven't had the political courage to do anything about it, that's why. If you get bored, click on this link and I think you'll understand better from where I am coming. It's about the former president of Advance PCS (sounds familiar doesn't it?) and his relationship with our elected officials. Here's the link: http://www.tompaine.com/feature2.cfm/ID/9599

John, a proud CORE member
ORC 3307.15 - not just a wish,
IT'S THE LAW!

----- Original Message -----

From: ANhamant@aol.com

Sent: Wednesday, September 14, 2005 4:53 PM
Subject: Fwd: FW: Advance PCS , Dennis speaks, and we thought so!

Judi,

The Rebates themselves are also called "kickbacks". The
question has always been did AdvancePCS provide the
full amount of any rebate that it negotiated with pharmaceutical
manufacturers or did AdvancePCS withhold some of the rebate
thereby increasing AdvancePCS's profit. It has always been
Warren County's contention that keeping the rebate information
secret permits any PBM to manipulate STRS which would then
result in greater costs to the Health Care stabilization fund.

Ohio Courts ruled in December 2003 that AdvancePCS did not
have to provide the Rebate information as that information was
protected under Ohio's Trade Secret laws. That decision was
most unfortunate and certainly does not indicate the amount
of concern that 23 other states have regarding AdvancePCS
as those states have sued AdvancePCS.

Nancy B. Hamant
WCRTA