Flashback (2 years ago): Court hears STRS records case

Canton Repository, December 12, 2003

By PAUL E. KOSTYU, Copley Columbus Bureau chief

"Michael A. Byers, a Columbus attorney hired by Attorney General Jim Petro to defend the State Teachers Retirement System, never mounted an argument that the document was public and should be released."

“They’re crooks,” said Nancy B. Hamant, who initially filed the records request for the Warren County retirees.

COLUMBUS — At a court hearing Thursday dealing with access to public records, no one argued for openness.

Instead, one side argued to keep records confidential as trade secrets, and the other essentially said, “Just tell us what to do.”

AdvancePCS Health, an Alabama-based pharmacy benefit manager, sued the State Teachers Retirement System to keep a document dealing with rebates it and the retirement system get from drug manufacturers confidential as trade secrets.

The rebate information was requested under the state’s public record law by the Warren County Retired Teachers Association. The State Teachers Retirement System was prepared to release the document until AdvancePCS got a temporary restraining order from a Franklin County judge. It argued before Magistrate Tim McCarthy that a permanent injunction should be issued.

Michael A. Byers, a Columbus attorney hired by Attorney General Jim Petro to defend the State Teachers Retirement System, never mounted an argument that the document was public and should be released. Instead, he clarified through questions to his one witness and the two for AdvancePCS that the State Teachers Retirement System had not released the document in question and never violated its contract with the pharmacy benefit manager.

Neither side gave opening or closing statements.

“They’re crooks,” said Nancy B. Hamant, who initially filed the records request for the Warren County retirees.

Hamant had hoped to participate in the hearing, but was prevented from doing so because she was not a party to the suit. She had filed, however, a memorandum with the court prior to the hearing, making her argument about why the rebate information should be released. The retirees could not afford an attorney, she said, and tried unsuccessfully through various groups to get free representation.

“If all the PBMs keep this information secret, how do they know they’re getting the best price?” she said later. “There’s no comparison.”

Hamant wants the information so prescription drug users can compare prices to determine where they can get the best deal. Doing so, she said, would save the State Teachers Retirement System money.

“STRS made the argument about how release of the rebate information could cost STRS more money,” she said. “We don’t know that.”

Cynthia E. Hvizdos, the corporate attorney for the State Teachers Retirement System, said after the hearing the pension fund’s only purpose was to get the judge to declare whether the document in question was public.

She said the system faced a liability if it violated public records law if the document wasn’t released and liability for violating trade secrets and contract laws if the document was released. She wouldn’t say which would create the greater financial burden.

Witnesses for AdvancePCS said that even within the company the data is released to people only on an “as needed” basis.

Jan Marie Reed, a Worthington-based account executive for the company, called the State Teachers Retirement System “a very savvy customer,” unlike others who use AdvancePCS. She said the State Teachers Retirement System wants a lot of data to measure performance.

“It wants line-by-line detail,” she said.

McCarthy is expected to rule by the middle of next week.

You can reach Copley Columbus Bureau Chief Paul E. Kostyu at (614) 222-8901 or e-mail:

paul.kostyu@cantonrep.com