Senator Anthony Bucco

August 25, 2009

Contact: Bill Murray / (609) 292-5199
Senator Anthony R. Bucco (R-25)

Most of the Details of the Medco Pharmaceutical Benefits Deal Redacted

Senate Republican Budget Officer, Tony Bucco asked Governor Corzine, in a letter today, to release the details of a proposed $6 billion contract that will allow MEDCO to run the drug benefits program that serves 800,000 public employees, retirees and their families.

In the letter, the Senator notes that the Corzine Administration allowed the vendor to censor critical information from their bid, including:

• A list of litigation or agency actions against Medco where public entities are litigants or complainants.
• Similar-sized public sector clients, including a listing of two similar sized vendors who terminated services with Medco.
• The network of pharmacies that would cover drugs through Medco.
• Significant information pertaining to Medco’s mail order capabilities, including the bidder’s error rate and response time with respect to filling mail orders.

“It is disappointing that Governor Corzine would allow a company to censor critical information about a $6 billion contract,” Bucco stated. “I sincerely hope that he fully discloses to the public the fundamental elements of this deal and prohibits vendors from censoring their own bids.”

The letter from Senator Bucco to Governor Corzine follows:

August 25, 2009

Honorable Jon Corzine
Governor, State of New Jersey
State House
P.O. Box One
Trenton, NJ 08625

Dear Governor Corzine:

I am writing to request that you provide certain information with respect to your recent decision to award a contract that gives Medco Health Solutions Inc. (Medco) the right to manage a drug benefits program offered to approximately 800,000 public employees, retirees, and their beneficiaries. The information was included as part of the bid submitted by Medco Health Solutions Inc., but the Treasury Department permitted Medco to heavily redact critical information from the copy of the bid provided to the Senate Republican Office last week.

Among the critical information redacted from the bid proposal:

• A list of litigation or agency actions against Medco where public entities are litigants or complainants.
• Similar-sized public sector clients, including a listing of two similar sized vendors who terminated services with Medco.
• The network of pharmacies that would cover drugs through Medco.
• Significant information pertaining to Medco’s mail order capabilities, including the bidder’s error rate and response time with respect to filling mail orders.

The contract will impact which drugs will be covered under the program, what pharmacies participants will be permitted to use, and the quality and reliability of mail order services so crucial to people with chronic conditions. Constituents will undoubtedly be concerned with whether the drugs they need will be covered by the program and whether pharmacies in their communities will be able to participate.

The contract also anticipates that the State Legislature will appropriate almost $6 billion over the next 5 years in furtherance of the contract. The Legislature will have no meaningful way to determine whether the amounts we are being asked to fund are reasonable without access to information that explains the level of services provided under the contract.

In light of the importance to beneficiaries of this pending contract and the Legislature’s role in funding it, we request that you provide a copy of Medco’s bid – redacted only to the extent determined appropriate by someone other than Medco and that, at the very least, includes the information above.

Additionally, we ask that you provide an analysis as to how the program under Medco will differ as compared to the program in place today. Specifically, which drugs will not be covered under Medco that are covered under the plan today? Which pharmacies that are participants in the current drug programs will not be participants under Medco?

Sincerely,
Anthony Bucco

Most of the Details of the Medco Pharmaceutical Benefits Deal Redacted Senate Republican Budget Officer, Tony Bucco asked Governor Corzine, in a letter today, to release the details of a proposed $6 billion contract that will allow MEDCO to run the drug benefits program that serves [...]