Nancy Hamant to STRS Board: Caremark raking in BILLIONS, on the backs of SICK PEOPLE

PRESENTATION TO STRS BOARD—JUNE 15,2006

Thank you Dr. Asbury and STRS Board for the opportunity to speak to you.

My name is Nancy B. Hamant, Legislative Chair for Warren County Retired Teachers Association (WCRTA) and I am a 28.6 year STRS member.

Since the year 2000, WRCTA has strongly questioned the operations of PBMs (Pharmacy Benefit Managers) and the rebates that they obtain.

Unfortunately, WCRTA’s four questions to STRS regarding AdvancePCS wanting information about Rebates to be disclosed resulted in AdvancePCS suing STRS.

AdvancePCS did NOT WANT TO DISCLOSE REBATE INFORMATION.

The Franklin County Magistrate’s decision was to PERMIT ADVANCEPCS TO WITHHOLD THE REBATE INFORMATION under Ohio’s Trade Secret laws.

The Magistrate’s decision was a slap in the face to ALL STRS MEMBERS and to

Ohio citizens.

As of today, 28 states have taken legal action against CAREMARK, the company that purchased ADVANCEPCS AND CURRENT PBM FOR STRS.

WCRTA is again requesting that STRS become its own PBM. WCRTA does not want to contribute one more dime of STRS Health Care funds to CAREMARK—a company that has gone from low assets, almost bankruptcy, in 1998 to a company with $33 billion in assets in 2006. ALL ON THE BACKS OF SICK PEOPLE!

WCRTA thanks STRS staff for duplicating 15 copies of the article Why the FBI, the SEC and every other agency you can think of are investigating a Nashville-based Fortune 500 Company, by Susan Drury, The Nashville Scene, June 14, 2006. WCRTA is requesting that the article be distributed to Dr. Asbury, the STRS Board Members and to Mr. Patterson from the Ohio Attorney General’s office as he has knowledge of the AdvancePCS lawsuit. Again, STRS staff thank you and please accept this contribution of $5 to the STRS administrative fund for the cost of duplication. [The article is also printed below this one.]