Corcoran et al v. CVS Health Corporation

Northern District of California, cand-4:2015-cv-03504

Exhibit 6

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Exhibit 6 Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 2 of 7 November 17, 2016 1 Page 1 ·1· · · · · · · · ·UNITED STATES DISTRICT COURT ·2· · · · · · · ·NORTHERN DISTRICT OF CALIFORNIA ·3· · · · · · · · · · · OAKLAND DIVISION ·4 · · · CHRISTOPHER CORCORAN, et al. ·5 · · · · · · · · Plaintiff, ·6 · · · · · ·vs.· · · · · · · · · · · · · ·No. 15-CV-03504-YGR ·7 · · · CVS PHARMACY, INC., ·8 · · · · · · · · Defendant. ·9· ·________________________________ 10 11 12 13 14· · · · ·VIDEOTAPED DEPOSITION OF WILLIAM JOHN BARRE 15 16· · · · · · · · ·Thursday, November 17, 2016 17· · · · · · · · · · · · · 12:59 P.M. 18 19· · · · · · · · · ·12670 High Bluff Drive 20· · · · · · · · · · San Diego, California 21 22 23· ·Reported by: 24· ·Harry Alan Palter 25· ·CSR No. 7708, Certified LiveNote Reporter U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 3 of 7 November 17, 2016 22 to 25 Page 22 Page 24 ·1· · · · A· · ·It would be the agreement we would have ·1· ·price.· It would have been the price of that ·2· ·signed per that date.· Previously, we may have had ·2· ·particular card program separate. ·3· ·other national agreements of some type.· But to this ·3· ·BY MS. McNAMARA: ·4· ·date, that would be, yes. ·4· · · · Q· · ·And why not?· Why wouldn't cash discount ·5· · · · Q· · ·And I'd like you to turn to page 20 of ·5· ·cards be included in this definition? ·6· ·the agreement.· And that is the Bates label ending ·6· · · · A· · ·Our view of usual and customary is as ·7· ·in -838. ·7· ·it's defined in this agreement here (Indicating); ·8· · · · A· · ·Hmm-hmm. ·8· ·someone that has walked off the street, has not ·9· · · · Q· · ·And about two-thirds of the way down the ·9· ·shown any other type of processing or adjudication 10· ·page is a definition of, "Usual and customary or 10· ·associated with that card. 11· ·U&C."· Do you see that? 11· · · · · · · Passively, what would they be charged for 12· · · · A· · ·Yes, I do. 12· ·that drug without presenting any type of a -- other 13· · · · Q· · ·And it says, "Usual and customary or U&C, 13· ·form of either payment or form of a cash discount 14· ·means the lowest price member pharmacy would charge 14· ·card that would provide some type of a different 15· ·to a cash-paying customer at that location for an 15· ·adjudication process. 16· ·identical prescription on that day.· This price must 16· · · · · · · So from a passive basis, you or myself or 17· ·include any applicable discounts, promotions, or 17· ·anybody walking off the street -- what would that 18· ·other offers to attract customers." 18· ·price of that product be at that store at that given 19· · · · · · · Did I read that correctly? 19· ·point in time? 20· · · · A· · ·Yes. 20· · · · Q· · ·Got it. 21· · · · Q· · ·And this would be the definition of "U&C" 21· · · · · · · And did your understanding of whether 22· ·that you and CVS agreed to as of the date of this 22· ·cash discount cards would be included in this U&C 23· ·contract; correct? 23· ·definition ever change? 24· · · · A· · ·Yes. 24· · · · A· · ·No. 25· · · · Q· · ·Are you familiar with the term "cash 25· · · · Q· · ·Do you recall that back in 2006, Walmart Page 23 Page 25 ·1· ·discount card"? ·1· ·started to offer a list of generic drugs for $4? ·2· · · · A· · ·Yes. ·2· · · · A· · ·Yes. ·3· · · · Q· · ·What is a "cash discount card"? ·3· · · · Q· · ·And what do you remember about that ·4· · · · A· · ·A "cash discount card" is a card that a ·4· ·offering? ·5· ·consumer brings to a pharmacy and typically receives ·5· · · · A· · ·Well, that Walmart -- it was ·6· ·a discount to that card compared to the pharmacy's ·6· ·approximately 400 drugs, almost all generic. I ·7· ·usual and customary price. ·7· ·don't think there was any brand associated with ·8· · · · Q· · ·And when you say, "discount compared to ·8· ·that.· It was a 30-day supply.· And they were ·9· ·the pharmacy's usual and customary price," what do ·9· ·putting that list together and offering that as 10· ·you mean? 10· ·their usual and customary price -- a $4 price tag -- 11· · · · A· · ·We would negotiate a formula for pricing 11· ·for those particular drugs. 12· ·drugs for cash discount business with a pharmacy or 12· · · · Q· · ·And do you recall that they were offering 13· ·a chain of pharmacies.· And the claims would price 13· ·that price to anybody who walked in off the street 14· ·at those contracted, calculated rates or the 14· ·and purchased the drug? 15· ·pharmacy's usual and customary, whichever is a lower 15· · · · A· · ·We viewed that as Walmart's usual and 16· ·price. 16· ·customary price.· Again, it was a passive 17· · · · Q· · ·And at the time you executed this 17· ·experience.· A person would not have to show any 18· ·agreement with CVS, did you understand the 18· ·type of ID card, or discount card or insurance card 19· ·definition of "usual and customary" to require CVS 19· ·or anything else to obtain that price. 20· ·to submit cash discount card prices as usual and 20· · · · Q· · ·And do you recall in the 2007-2008 21· ·customary? 21· ·timeframe other pharmacies coming out with 22· · · · · · · MR. GILMORE:· Objection.· Form. 22· ·membership programs offering special pricing on 23· ·Foundation. 23· ·generics? 24· · · · · · · THE WITNESS:· No.· We would not have 24· · · · A· · ·Yes. 25· ·considered that to be their usual and customary 25· · · · Q· · ·And tell me what you remember about those U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 4 of 7 November 17, 2016 26 to 29 Page 26 Page 28 ·1· ·programs. ·1· · · · A· · ·The -- ·2· · · · A· · ·What I recall is that several pharmacy ·2· · · · · · · MR. GILMORE:· Objection.· Form. ·3· ·chains offered a membership program to which -- may ·3· ·Foundation. ·4· ·or may not have had a fee applied to -- and it was a ·4· · · · · · · THE WITNESS:· The membership program was ·5· ·card specific to that pharmacy. ·5· ·a program that a consumer actively enrolled in, as ·6· · · · · · · So, in other words, if you had a CVS ·6· ·if they were joining -- and that was different than ·7· ·program, it wouldn't work at Walgreens, by way of ·7· ·a usual and customary, which we viewed as what would ·8· ·example -- and because a person had actively joined ·8· ·be that -- what would be that price point if a ·9· ·that program, they were eligible to either get ·9· ·consumer was not taking any action, simply coming to 10· ·either 30-day programs or some 90-day programs and 10· ·the pharmacy and presenting their prescription 11· ·others -- prescriptions for those day supplies at a 11· ·without any other insurance card or discount program 12· ·discounted price. 12· ·or anything of that nature; what would that price 13· · · · Q· · ·And did you view those programs as 13· ·calculate -- what would they choose to charge for 14· ·different from the Walmart $4 offering? 14· ·that price? 15· · · · A· · ·Yes. 15· ·BY MS. McNAMARA: 16· · · · Q· · ·And why was that? 16· · · · Q· · ·And do you recall CVS having a membership 17· · · · A· · ·Again, it's this passive vs. active 17· ·program? 18· ·scenario. 18· · · · A· · ·Yes. 19· · · · · · · In a passive model, the Walgreens usual 19· · · · Q· · ·And what do you recall about that 20· ·and customary was obtained by a consumer without 20· ·program? 21· ·taking any action on their part. 21· · · · A· · ·I remember the program came out -- I 22· · · · · · · In the example of a club program -- or 22· ·believe the program was really specifically for 23· ·however you want to refer to these programs -- a 23· ·90 days' medications at the time.· I believe they 24· ·person had actively joined.· They either registered 24· ·had some type of charge associated with the program, 25· ·or gave their name and information, but they were 25· ·if I remember correctly.· And the program began Page 27 Page 29 ·1· ·connected to a specific type of program that an ·1· ·somewhere in the 2007 or '8 range.· I can't exactly ·2· ·individual not enrolled in that program would not be ·2· ·remember when, but it sounds about right timewise. ·3· ·eligible to receive that pricing model. ·3· · · · Q· · ·And CVS's program was also an ·4· · · · Q· · ·And you mentioned you recalled some ·4· ·enrollment-based program, to your recollection? ·5· ·programs having a fee and others not having a fee. ·5· · · · · · · MR. GILMORE:· Objection.· Form. ·6· · · · · · · Was the fee a determining factor for you ·6· ·Foundation. ·7· ·or was it the active-passive distinction that you've ·7· · · · · · · THE WITNESS:· Yes.· We saw it as an ·8· ·been articulating? ·8· ·enrollment program. ·9· · · · A· · ·It was the active -- ·9· ·BY MS. McNAMARA: 10· · · · · · · MR. GILMORE:· Objection.· Form, 10· · · · Q· · ·And how did you learn about CVS's 11· ·foundation. 11· ·program? 12· · · · · · · THE WITNESS:· Excuse me. 12· · · · A· · ·Don't remember exactly the specific 13· · · · · · · It was the -- it was the active vs. 13· ·event, but it was generally known in the industry 14· ·passive. 14· ·that CVS was offering such programs.· So whether -- 15· · · · · · · In passive, again meaning Walmart, a 15· ·some type of chain drugstore publication or whether 16· ·person took no action and received that opportunity. 16· ·some type of industry information piece -- I'm sure 17· · · · · · · As far as a CVS or Walgreens or any other 17· ·that's how we found out about it. 18· ·type of program of these "club programs" as we 18· · · · Q· · ·And do you recall when you learned about 19· ·generically referred to them as, the individual had 19· ·it? 20· ·made a decision to actively become part of such 20· · · · A· · ·Somewhere right around the beginning that 21· ·program.· So we viewed that as different. 21· ·it started.· So in the 2007-'8 range, but not 22· ·BY MS. McNAMARA: 22· ·specifically. 23· · · · Q· · ·And did you view those -- well, and tell 23· · · · Q· · ·And do you recall discussing membership 24· ·me how you viewed membership programs with respect 24· ·programs with other MedImpact employees in your 25· ·to the pharmacy's usual and customary price. 25· ·group? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 5 of 7 November 17, 2016 30 to 33 Page 30 Page 32 ·1· · · · A· · ·Yes. ·1· ·BY MS. McNAMARA: ·2· · · · Q· · ·And tell me about those discussions. ·2· · · · Q· · ·And do you recall any conversations with ·3· · · · A· · ·Well, we typically -- as anything that ·3· ·any CVS employee regarding whether CVS would be ·4· ·was pharmacy news or retail oriented, we probably ·4· ·submitting the HSB price as U&C? ·5· ·would discuss such a program being offered.· I can't ·5· · · · A· · ·No, I don't remember any specific ·6· ·recall any specific conversations.· Just the general ·6· ·conversation. ·7· ·aspect that we were aware that they were out there. ·7· · · · Q· · ·I'd like to go back to the contract ·8· · · · Q· · ·And who do you recall speaking with? ·8· ·definition of U&C that we read earlier. ·9· · · · A· · ·Suzanne Andrews that worked with me. ·9· · · · A· · ·Okay. 10· ·Howard Wile was another individual that worked with 10· · · · Q· · ·The contract defines U&C as, "The lowest 11· ·me. 11· ·price a member pharmacy would charge to a 12· · · · Q· · ·And did they share your view that -- that 12· ·cash-paying customer at that location for an 13· ·membership programs were outside of a pharmacy's 13· ·identical prescription on that day." 14· ·usual and customary? 14· · · · · · · In -- in your view, is a customer who 15· · · · A· · ·I don't recall. 15· ·joins a membership program a cash customer? 16· · · · Q· · ·And I don't think I asked this question 16· · · · A· · ·No. 17· ·with respect to CVS specifically, but in your view, 17· · · · · · · MR. GILMORE:· Objection.· Form and 18· ·was CVS required to submit its membership program 18· ·foundation. 19· ·price as its usual and customary price? 19· ·BY MS. McNAMARA: 20· · · · · · · MR. GILMORE:· Objection.· Form. 20· · · · Q· · ·And why not? 21· ·Foundation.· Calls for a legal conclusion. 21· · · · A· · ·Because they've actively chosen to join a 22· ·BY MS. McNAMARA: 22· ·program.· It's not really any different than what we 23· · · · Q· · ·In light of what you knew about the 23· ·refer to as these "cash discount programs" earlier. 24· ·program. 24· ·It just happens to be one CVS was sponsoring or 25· · · · · · · MR. GILMORE:· Same objections. 25· ·offering to their clientele. Page 31 Page 33 ·1· · · · · · · THE WITNESS:· No.· We did not require ·1· · · · Q· · ·And the definition goes on to say, "This ·2· ·them to. ·2· ·price must include any applicable discounts, ·3· ·BY MS. McNAMARA: ·3· ·promotions, or other offers to attract customers." ·4· · · · Q· · ·And at any time during your tenure at ·4· · · · · · · In your mind, was a membership program ·5· ·MedImpact, did you learn whether CVS was or was not, ·5· ·like CVS's Health Savings Pass and applicable ·6· ·in fact, submitting the membership program price's ·6· ·discount? ·7· ·U&C? ·7· · · · A· · ·No. ·8· · · · A· · ·Our belief was they were not unless they ·8· · · · · · · MR. GILMORE:· Objection.· Form. ·9· ·chose that that membership fee price was the same as ·9· ·Foundation.· Calls for a legal conclusion. 10· ·their usual and customary price.· Then they'd be 10· ·BY MS. McNAMARA: 11· ·submitting that's as the usual and customary price. 11· · · · Q· · ·Was it a promotion? 12· · · · Q· · ·But they weren't required to -- 12· · · · A· · ·No. 13· · · · A· · ·They were not -- 13· · · · Q· · ·An offer to attract customers? 14· · · · · · · MR. GILMORE:· Objection. 14· · · · A· · ·By nature it may have attracted 15· ·BY MS. McNAMARA: 15· ·customers.· But we did not see it as being -- as 16· · · · Q· · ·-- under the terms of the contract? 16· ·being part of the definition. 17· · · · · · · I'm sorry. 17· · · · Q· · ·And that's, again, because it was a 18· · · · · · · MR. GILMORE:· Objection.· Form. 18· ·program that someone actively had to join; fair? 19· ·Foundation.· Calls for a legal conclusion. 19· · · · A· · ·That is correct.· Yes. 20· · · · · · · THE WITNESS:· We looked at what they 20· · · · Q· · ·Do you recall telling any MedImpact 21· ·submitted as a usual and customary price as the 21· ·clients that -- well, strike that. 22· ·passive price that was available to anyone walking 22· · · · · · · In your role as VP of strategic network 23· ·in.· We did not contact that to any type of club or 23· ·development, did you interact with MedImpact's 24· ·loyalty program or anything of that nature that they 24· ·clients? 25· ·were doing. 25· · · · A· · ·Yes. U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 6 of 7 November 17, 2016 34 to 37 Page 34 Page 36 ·1· · · · Q· · ·And do you recall telling any of those ·1· · · · A· · ·Yes. ·2· ·clients that CVS or any other pharmacy would not be ·2· · · · Q· · ·What is it? ·3· ·submitting a membership program price as U&C? ·3· · · · A· · ·Salesforce for MedImpact is our work ·4· · · · A· · ·Yes. ·4· ·management solution tools.· So as issues to resolve, ·5· · · · Q· · ·And what clients did you recall talking ·5· ·tasks to perform, et cetera.· People typically enter ·6· ·to about that membership-program issue? ·6· ·in as a Salesforce case and direct that to the right ·7· · · · A· · ·Harvard Pilgrim comes to mind as one. ·7· ·individual to receive either a response or an action ·8· · · · · · · THE REPORTER:· Harvey? ·8· ·to be taken. ·9· · · · · · · THE WITNESS:· Harvard. ·9· · · · Q· · ·So what prompts the opening of a case in 10· · · · · · · THE REPORTER:· Oh. 10· ·Salesforce? 11· · · · · · · THE WITNESS:· H-a-r-v-a-r-d Pilgrim. 11· · · · A· · ·Could be multiple of reasons.· But, 12· ·BY MS. McNAMARA: 12· ·generally, it's a need to have either a question 13· · · · Q· · ·And what do you remember about that 13· ·answered or a need to have some type of project 14· ·conversation with Harvard Pilgrim? 14· ·completed or some type of document completed or -- 15· · · · A· · ·General curiosity to what a club program 15· ·you know, really anything that needs to be seen 16· ·was.· And just explained that was something that CVS 16· ·through its completion.· It's a way for us to track 17· ·was offering to consumers going in or consumers that 17· ·work effort in the building. 18· ·were enrolling actively in this program to get a 18· · · · Q· · ·And once a case is open, it can then be 19· ·90-day medication. 19· ·directed to the appropriate person to handle -- 20· · · · Q· · ·And do you recall Harvard Pilgrim raising 20· · · · A· · ·Yes. 21· ·it with you? 21· · · · Q· · ·-- the issue? 22· · · · A· · ·Most likely, yes. 22· · · · A· · ·Yes.· That's correct. 23· · · · Q· · ·And what was their response when you 23· · · · Q· · ·And who uses Salesforce? 24· ·explained that it was outside of U&C? 24· · · · A· · ·It's used throughout the organization. 25· · · · A· · ·Don't really remember any specific 25· · · · Q· · ·So can you give me a general overview of Page 35 Page 37 ·1· ·response.· Just a clarity of explanation of what the ·1· ·the process of how a Salesforce case is resolved? ·2· ·program was. ·2· · · · A· · ·Sure. ·3· · · · Q· · ·And they didn't object, I take it? ·3· · · · Q· · ·After -- after it's opened, what happens? ·4· · · · A· · ·I don't recall. ·4· · · · A· · ·A sales case is opened.· And it's ·5· · · · · · · MR. GILMORE:· Objection.· Form and ·5· ·typically assigned to an individual.· An individual ·6· ·foundation. ·6· ·receives that and reviews that and either answers it ·7· · · · · · · THE WITNESS:· I don't recall any ·7· ·and resolves it or will forward it to another entity ·8· ·objection. ·8· ·or individual for resolution. ·9· ·BY MS. McNAMARA: ·9· · · · · · · Once that information is -- the work is 10· · · · Q· · ·And do you recall any -- any 10· ·kind of waved through the system and the originator 11· ·conversations with any other MedImpact clients about 11· ·of that has received a response -- that maybe 12· ·membership program? 12· ·they're satisfied then -- they can close the case. 13· · · · A· · ·No.· That's the only one I can recall. 13· ·And if it is not met with their expectations, they 14· · · · Q· · ·I'm going to hand you what I've marked 14· ·can either reassign it or re-create or close the 15· ·Defendant's Exhibit 301. 15· ·case as a nonresolved case. 16· · · · · · · (Exhibit 301 marked) 16· · · · Q· · ·So taking a look at this specific case, 17· ·BY MS. McNAMARA: 17· ·which is No. 00259517, sticking, again, to the 18· · · · Q· · ·And this is a document that was produced 18· ·general format of Salesforce first, about halfway 19· ·with Bates label MedImpact 000001, and the header 19· ·down the first page, there's a header that says, "To 20· ·says, "Case: 00259517 Salesforce Unlimited Edition." 20· ·Be Completed By Requester."· Do you see that? 21· ·And this document has a Salesforce logo in the upper 21· · · · A· · ·Yes. 22· ·left-hand corner. 22· · · · Q· · ·And then two lines down, there's the case 23· · · · A· · ·Yes. 23· ·owner.· Do you see that? 24· · · · Q· · ·It's a cute little snowman.· Are you 24· · · · A· · ·Marty Heightsman, yes. 25· ·familiar with Salesforce? 25· · · · Q· · ·So what is the "case owner"? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Case 4:15-cv-03504-YGR Document William434-7 John Filed Barre 05/05/20 Page 7 of 7 November 17, 2016 90 to 92 Page 90 Page 92 ·1· · · · · · · DECLARATION UNDER PENALTY OF PERJURY ·1· · STATE OF CALIFORNIA· · ·) ·2 ·2· · · · · · · · · · · · · ·) ·3· · · · · · · ·I, William John Barre, do hereby certify under ·3· · COUNTY OF SAN DIEGO· · ·) ·4· · penalty of perjury that I have read the foregoing ·4 ·5· · transcript of my deposition taken on November 17, 2016; ·5 ·6· · that I have made such corrections as appear noted on the ·6· · · · · · · ·I, Harry A. Palter, a Certified Shorthand ·7· · Reporter of the State of California, do hereby certify: ·7· · Deposition Errata Sheet, attached hereto, signed by me; ·8· · · · · · · ·That prior to being examined, the witness in ·8· · that my testimony as contained herein, as corrected, is ·9· · the foregoing proceedings was by me duly sworn to ·9· · true and correct. 10· · testify to the truth, the whole truth, and nothing but 10 11· · the truth; 11· · · · · · ·Dated this _____ day of ____________, 20___, at 12· · · · · · · ·That said proceedings were taken before me at 12· · _____________________, California. 13· · the time and place therein set forth and were taken down 13 14· · by me in shorthand and thereafter transcribed into 14 15· · typewriting under my direction and supervision; 15· · · · · · · · · · ·______________________________ 16· · · · · · · ·I further certify that I am neither counsel 16· · · · · · · · · · · · · William John Barre 17· · for, nor related to, any party to said proceedings, nor 17 18· · in any way interested in the outcome thereof. 18 19· · · · · · · ·In witness whereof, I have hereunto 19 20· · subscribed my name. 20 21· · Dated: November 18, 2016 21 22 22 23 23 24· · ____________________________ 24 · · · HARRY ALAN PALTER 25 25· · CSR No. 7708 Page 91 ·1· · · · · · · · · · DEPOSITION ERRATA SHEET ·2 · · · Page No._____ Line No. _____ ·3 · · · Change:______________________________________________ ·4 · · · Reason for change: __________________________________ ·5 · · · Page No._____ Line No. _____ ·6 · · · Change:______________________________________________ ·7 · · · Reason for change: __________________________________ ·8 · · · Page No._____ Line No. _____ ·9 · · · Change:______________________________________________ 10 · · · Reason for change: __________________________________ 11 · · · Page No._____ Line No. _____ 12 · · · Change:______________________________________________ 13 · · · Reason for change: __________________________________ 14 · · · Page No._____ Line No. _____ 15 · · · Change:______________________________________________ 16 · · · Reason for change: __________________________________ 17 · · · Page No._____ Line No. _____ 18 · · · Change:______________________________________________ 19 · · · Reason for change: __________________________________ 20 · · · Page No._____ Line No. _____ 21 · · · Change:______________________________________________ 22 · · · Reason for change: __________________________________ 23 24 · · · _____________________________· · · ·________________ 25· · · ·William John Barre· · · · · · · · · · ·Dated U.S. LEGAL SUPPORT (877) 479-2484 YVer1f