Gary Russell responds to John Curry: All PBMs keep their pricing information confidential from competitors

From Gary Russell, April 18, 2007
Subject: RE: Gary, I still haven't received an answer!

John, I'm sorry that you felt I was dodging your question. However, from your e-mails I thought that you wanted to review the contract for the details about the prior authorization process. Since the prior authorization details, including the timetable, are not part of the contract, I had assumed your question about reviewing the contract was moot.

Records of the system are available for public inspection, unless a record falls within one of the statutory exemptions from disclosure under Ohio's public records law. In the case of the Pharmacy Benefits Management Agreement, between State Teachers Retirement System of Ohio and Advance PCS Health, L.P., as an indirect wholly owned subsidiary of CaremarkPCS, as amended January 1, 2005, STRS Ohio is contractually prohibited from disclosing any of the pricing information or terms contained in the agreement except as part of an audit of the agreement to an auditor that is bound by a confidentiality agreement or as specifically required to disclose such pricing information or terms by applicable law.

All PBMs keep their pricing information confidential from competitors which, enables STRS Ohio to negotiate lower drug pricing for the overall market basket of prescription drugs. There will be an education session on Prescription Benefit Managers at the May board meeting.

Gary