Corcoran et al v. CVS Health Corporation

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

Exhibit F

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2 Exhibit) Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 2 of 22 November 02, 2016 1 ∑1∑∑∑∑∑∑IN THE UNITED STATES DISTRICT COURT ∑2∑∑∑∑∑FOR THE NORTHERN DISTRICT OF CALIFORNIA ∑3∑∑∑∑∑∑∑∑∑Case No. 15-CV-3504-YGR ∑4∑∑∑∑--------------------------------X ∑∑∑∑∑CHRISTOPHER CORCORAN, ELIZABETH ∑5∑∑∑∑GARDNER, TYLER CLARK, MICHAEL ∑∑∑∑∑NORKUS, ZULEMA AVIS, ROBERT ∑6∑∑∑∑GARBER, TONI ODORISIO, ROBERT ∑∑∑∑∑GUARNIERI, ONNOLEE SAMUELSON, ∑7∑∑∑∑ROBERT JENKS, DEBBIE BARRETT, ∑∑∑∑∑CARL WASHINGTON, ROBERT PODGORNY, ∑8∑∑∑∑VINCENT GARGIULO, ZACHARY HAGERT, ∑∑∑∑∑KEVIN CAULEY, LINDA KRONE, ∑9∑∑∑∑CAROLYN CAINE, KEN BOLIN, WALTER ∑∑∑∑∑WULFF, AMANDA GILBERT, and 10∑∑∑∑GILBERT BROWN on behalf of ∑∑∑∑∑themselves and all others 11∑∑∑∑similarly situated, 12∑∑∑∑∑∑∑∑∑∑∑∑Plaintiffs, 13∑∑∑∑∑∑∑∑∑∑VS. 14∑∑∑∑CVS PHARMACY, INC., 15∑∑∑∑∑∑∑∑∑∑∑∑Defendant. ∑∑∑∑∑--------------------------------X 16 17 18∑∑∑∑∑∑VIDEOTAPED DEPOSITION OF CAL CORUM 19∑∑∑∑∑∑∑∑Wednesday, November 2, 2016 20∑∑∑∑∑∑∑∑∑85 Livingston Avenue 21∑∑∑∑∑∑∑∑∑∑Roseland, New Jersey 22 23 24∑∑∑∑Reported by: ∑∑∑∑∑AYLETTE GONZALEZ, RPR, CLR, CCR 25∑∑∑∑JOB NO. 186174 U.S. LEGAL SUPPORT (877) 479-2484 Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 3 of 22 November 02, 2016 2 ∑1∑∑∑∑∑∑∑∑∑∑∑∑DATE:∑November 2, 2016 ∑2∑∑∑∑∑∑∑∑∑∑∑∑TIME:∑11:00 a.m. ∑3 ∑4 ∑5∑∑∑∑∑∑∑∑Videotaped Deposition of CAL CORUM, ∑6∑∑∑∑held at the offices of CONNELL FOLEY, LLP., ∑7∑∑∑∑85 Livingston Avenue, Roseland, New Jersey ∑8∑∑∑∑07068, pursuant to subpoena, before AYLETTE ∑9∑∑∑∑GONZALEZ, a Registered Professional 10∑∑∑∑Reporter, Certified LiveNote Reporter, 11∑∑∑∑Certified Court Reporter and Notary Public 12∑∑∑∑of the States of New York and New Jersey. 13 14 15 16 17 18 19 20 21 22 23 24 25 U.S. LEGAL SUPPORT (877) 479-2484 Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 4 of 22 November 02, 2016 5 ∑1∑∑∑∑∑∑∑∑∑THE VIDEOGRAPHER:∑This is the ∑2∑∑∑∑∑∑videotaped deposition of Cal Corum in ∑3∑∑∑∑∑∑the matter of Corcoran, et al. V CVS ∑4∑∑∑∑∑∑Pharmacy Inc., in the United States ∑5∑∑∑∑∑∑District Court for the Northern ∑6∑∑∑∑∑∑District of California. ∑7∑∑∑∑∑∑∑∑∑This deposition is being held at ∑8∑∑∑∑∑∑Connell Foley, LLP. on November 2, ∑9∑∑∑∑∑∑2016. 10∑∑∑∑∑∑∑∑∑My name is Charlie Bowman from 11∑∑∑∑∑∑USLegal Support.∑I'm the legal video 12∑∑∑∑∑∑specialist. 13∑∑∑∑∑∑∑∑∑The court reporter today is 14∑∑∑∑∑∑Aylette Gonzalez, also from USLegal 15∑∑∑∑∑∑Support. 16∑∑∑∑∑∑∑∑∑We're going on the record at 17∑∑∑∑∑∑approximately 11:04 a.m. 18∑∑∑∑∑∑∑∑∑Counsel will now speak your 19∑∑∑∑∑∑appearances for the record. 20∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Enu Mainigi and 21∑∑∑∑∑∑Grant Geyerman from the law firm 22∑∑∑∑∑∑Williams & Connelly for the CVS 23∑∑∑∑∑∑defendants. 24∑∑∑∑∑∑∑∑∑MS. ANZIDEI:∑Rebecca Anzidei from 25∑∑∑∑∑∑Stein Mitchell on behalf of the U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 5 of 22 November 02, 2016 6 ∑1∑∑∑∑∑∑plaintiffs. ∑2∑∑∑∑∑∑∑∑∑MR. SMITH:∑Christopher Smith from ∑3∑∑∑∑∑∑Husch Blackwell representing ∑4∑∑∑∑∑∑Mr. Corum. ∑5∑∑∑∑∑∑∑∑∑THE VIDEOGRAPHER:∑Will the court ∑6∑∑∑∑∑∑reporter please swear in the witness. ∑7∑∑∑∑C A L∑∑C O R U M, ∑8∑∑∑∑∑∑∑∑called as a witness, having been ∑9∑∑∑∑∑∑∑∑first duly sworn by a Notary Public 10∑∑∑∑∑∑∑∑of the State of New Jersey, was 11∑∑∑∑∑∑∑∑examined and testified as follows: 12∑∑∑∑EXAMINATION BY 13∑∑∑∑MS. MAINIGI: 14∑∑∑∑∑∑Q.∑∑Good morning, Mr. Corum. 15∑∑∑∑∑∑∑∑∑Could you state your full name for 16∑∑∑the record, please. 17∑∑∑∑∑∑A.∑∑Cedric Calvin Corum. 18∑∑∑∑∑∑Q.∑∑Have you ever been deposed before, 19∑∑∑Mr. Corum? 20∑∑∑∑∑∑A.∑∑Memory serves once before, I 21∑∑∑believe. 22∑∑∑∑∑∑Q.∑∑How long ago was that 23∑∑∑approximately? 24∑∑∑∑∑∑A.∑∑Ten, fifteen years. 25∑∑∑∑∑∑Q.∑∑You may not remember the ground U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 6 of 22 November 02, 2016 21 ∑1∑∑∑agreement over in place and then we would do ∑2∑∑∑an addendum to that specific to that network ∑3∑∑∑and typically that was just a -- what the ∑4∑∑∑specific rate was going to be for that ∑5∑∑∑network. ∑6∑∑∑∑∑∑Q.∑∑So with CVS, there was a master ∑7∑∑∑agreement that existed; were there master ∑8∑∑∑agreements with other big retail chains as ∑9∑∑∑well? 10∑∑∑∑∑∑A.∑∑Same. d who -- do you know who 11∑∑∑∑∑∑Q.∑∑And 12∑∑ ∑∑ ∑negotiated the master agreement between CVS 13∑∑ ∑∑ ∑and Medco? 14∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑No, that was in place when I got 15∑∑ ∑∑ ∑there. 16∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑That was not something you 17∑∑ ∑∑ ∑negotiated? 18∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑No. 19∑∑∑∑∑∑Q.∑∑But you had dealings with the folks 20∑∑∑at CVS for addendums and other issues? 21∑∑∑∑∑∑A.∑∑Correct. 22∑∑∑∑∑∑Q.∑∑Coming back to the adjudication 23∑∑∑process for a moment; does the adjudication 24∑∑∑process -- well, let me back up.∑What is a 25∑∑∑co-payment? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 7 of 22 November 02, 2016 44 ∑1∑∑∑∑∑∑A.∑∑It doesn't.∑What the letter says ∑2∑∑∑is that here's our policy.∑This is what it ∑3∑∑∑is.∑We're not willing to change it.∑Here it ∑4∑∑∑is. ∑5∑∑∑∑∑∑Q.∑∑In terms of ensuring that retail ∑6∑∑∑pharmacies and other pharmacies comply with ∑7∑∑∑your policies, did Medco have an audit group? ∑8∑∑∑∑∑∑A.∑∑Yes. ∑9∑∑∑∑∑∑Q.∑∑And d would the audit group ensure 10∑∑ ∑∑ ∑among other things that Medco was receiving 11∑∑ ∑∑ ∑the pricing that it contracted to receive per 12∑∑ ∑∑ ∑its contract with that pharmacy? 13∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑What the audit group's 14∑∑∑responsibilities were, I can't speak to, but ∑∑ 15∑∑ ∑∑ ∑-- I mean, they did what they did, you know, 16∑∑ ∑∑ ∑to make sure that clients were clients.∑ clients.∑Those 17∑∑ ∑∑ ∑that participate in our programs were 18∑∑∑compliant with the policies regarding our 19∑∑∑program. 20∑∑∑∑∑∑Q.∑∑And one of the policies of course 21∑∑∑or one of the agreements that Medco had with 22∑∑∑various pharmacies was pricing terms, correct? 23∑∑∑∑∑∑A.∑∑Yes. 24∑∑∑∑∑∑Q.∑∑And it was important to ensure that 25∑∑∑the pharmacies were complying with the pricing U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 8 of 22 November 02, 2016 45 ∑1∑∑∑terms that you had negotiated, correct? ∑2∑∑∑∑∑∑A.∑∑I would think that's important. d in fact, that would be one of ∑3∑∑∑∑∑∑Q.∑∑And ∑4∑∑ 4∑∑∑ ∑the most important things to do, right, to ∑5∑∑ 5∑∑∑ ∑ensure that pharmacies were complying with the ∑6∑∑ 6∑∑∑ ∑pricing terms that had been agreed to? ∑7∑∑ 7∑∑∑ ∑∑∑∑A. A.∑∑∑Well, I don't know if any provision ∑8∑∑ 8∑∑∑ ∑in the agreement is more important than ∑9∑ 9∑∑∑another provision in the agreement, but I ∑∑ 10∑∑∑think that their responsibilities would be to ∑∑ ∑∑ 11∑∑∑ensure that pharmacies were compliant with the ∑∑ 12∑∑∑terms of the agreement. ∑∑ 13∑∑∑∑∑∑Q. Q.∑∑∑And were you ever aware of any 14∑∑ ∑∑ ∑audit finding of the Medco audit group 15∑∑ ∑∑ ∑resulting in them determining that CVS was not 16∑∑ ∑∑ ∑compliant with the pricing terms laid out in 17∑∑ ∑∑ ∑the various contracts? 18∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑I wasn't privy to the -- all the 19∑∑ ∑∑ ∑findings of the audit group. 20∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑But do you recall ever being made 21∑∑ ∑∑ ∑aware of any finding from an audit group 22∑∑ ∑∑ ∑related to CVS' provision of rates consistent 23∑∑ ∑∑ ∑with the contract? 24∑∑∑∑∑∑A. A.∑∑∑I don't recall, no. 25∑∑∑∑∑∑Q.∑∑Bear with me one second, Mr. Corum, U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 9 of 22 November 02, 2016 53 ∑1∑∑∑it may have been mentioned, but I quite ∑2∑∑∑frankly didn't pay any attention to it. ∑3∑∑∑∑∑∑Q.∑∑Okay.∑Touching on the letter and ∑4∑∑∑the e-mail that were marked as Defense ∑5∑∑∑Exhibits 264 and 265 that you were just asked ∑6∑∑∑a series of questions about. ∑7∑∑∑∑∑∑A.∑∑Okay. ∑8∑∑∑∑∑∑Q.∑∑In your letter, which is marked as ∑9∑∑∑Defendant's Exhibit 265, nowhere in this 10∑∑∑letter did you say don't worry the HSP program 11∑∑∑is already excluded, did you? 12∑∑∑∑∑∑A.∑∑No. kay.∑ ∑Are you familiar with 13∑∑∑∑∑∑Q.∑∑Okay.∑ 14∑∑ ∑∑ ∑whether or not the HSP program has more than a 15∑∑ ∑∑ ∑nominal enrollment fee? 16∑∑ ∑∑ ∑∑∑∑∑∑∑MS. MAINIGI: MAINIGI:∑ ∑Objection; form. 17∑∑∑∑∑∑A. ∑∑ A.∑∑∑I don't even know what the HSC 18∑∑∑familiar is. ∑∑ 19∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑You're not familiar with CVS' HSP 20∑∑ ∑∑ ∑program? 21∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑No. 22∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑Okay.∑You talked a little bit Okay.∑ 23∑∑ ∑∑ ∑before about the claims adjudication process. 24∑∑∑How familiar are you with the claims ∑∑ 25∑∑∑adjudication process? ∑∑ U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 10 of 22 November 02, 2016 54 ∑1∑∑∑∑∑∑A.∑∑Not terribly. 2∑ ∑2∑∑∑∑∑∑Q. ∑∑ Q.∑∑∑Are you aware or are you familiar ∑3∑∑ 3∑∑∑ ∑with the fact that information is provided by ∑4∑∑ 4∑∑∑ ∑the pharmacies to, in this case, Medco in ∑5∑∑ 5∑∑∑ ∑order for Medco to calculate what the ∑6∑∑ 6∑∑∑ ∑reimbursement amount should be? ∑7∑∑ 7∑∑∑ ∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. MAINIGI:∑ ∑8∑∑ 8∑∑∑ ∑∑∑∑A. A.∑∑∑I'm not sure what the pharmacy's 9∑ ∑9∑∑∑responsibility is in terms of sending ∑∑ 10∑∑∑information to Medco and how that whole ∑∑ 11∑∑ ∑∑ ∑process works.∑I know we had a system in 12∑∑ ∑∑ ∑place that adjudicated the claims and who did 13∑∑ ∑∑ ∑what when. 14∑∑∑∑∑∑Q. ∑∑ Q.∑∑∑You're not familiar? 15∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑I'm 'm not familiar with. 16∑∑∑∑∑∑Q.∑∑Are you familiar with what U&C is? 17∑∑∑∑∑∑A.∑∑To the extent that -- in terms of 18∑∑∑what this says, yes. d what's your understanding of 19∑∑∑∑∑∑Q.∑∑And 20∑∑∑where the usual and customary price comes 21∑∑∑from, how is it calculated? 22∑∑∑∑∑∑A. A.∑∑∑ ∑'m I'm not sure how it's calculated. 23∑∑∑∑∑∑Q. Q.∑∑∑Do you know who comes up with the 24∑∑∑usual and customary price in terms of in this 25∑∑∑relationship, did that come from CVS or did U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 11 of 22 November 02, 2016 55 ∑1∑∑∑that come from Medco?∑ ∑The specific usual and 2∑ ∑2∑∑ ∑∑ ∑customary price for a drug, who calculated ∑3∑∑ 3∑∑∑ ∑that, the pharmacy or Medco? ∑4∑∑ 4∑∑∑ ∑∑∑∑A. A.∑∑∑I'm 'm not sure. sure.∑∑I don't know. ∑5∑∑∑∑∑∑Q.∑∑If you could turn back to ∑6∑∑∑Defendant's Exhibit 263, which is the big ∑7∑∑∑contract that we looked at before.∑Turn to -- ∑8∑∑∑it's page six of the document, if you just ∑9∑∑∑look at the pages, not the Bates label, but 10∑∑∑just the regular document says page six on it, 11∑∑∑it's double-sided. 12∑∑∑∑∑∑A.∑∑Got it. 13∑∑∑∑∑∑Q.∑∑And this talks about section 2.3.4; 14∑∑∑do you see that? 15∑∑∑∑∑∑A.∑∑Yeah. 16∑∑∑∑∑∑Q.∑∑And this is reimbursement rates to 17∑∑∑CVS for preferred networks; do you see that? 18∑∑∑∑∑∑A.∑∑Yes. 19∑∑∑∑∑∑Q.∑∑Are these the reimbursement rates 20∑∑∑that you talked about negotiating as part of 21∑∑∑your responsibilities? 22∑∑∑∑∑∑A.∑∑Correct. 23∑∑∑∑∑∑Q.∑∑It says on number 2, "generic 24∑∑∑drugs"; do you see that? 25∑∑∑∑∑∑A.∑∑Yes. U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 12 of 22 November 02, 2016 56 ∑1∑∑∑∑∑∑Q.∑∑Then it says item number one, the ∑2∑∑∑reimbursement rate is going to be the lesser ∑3∑∑∑of and then it list several things and one of ∑4∑∑∑them is CVS' usual and customary price; do you ∑5∑∑∑see that? ∑6∑∑∑∑∑∑A.∑∑The lesser of CVS usual and ∑7∑∑∑customary price up to -- ∑8∑∑∑∑∑∑Q.∑∑Exactly. ∑9∑∑∑∑∑∑A.∑∑Right, okay. 10∑∑∑∑∑∑Q.∑∑And then it goes on.∑Does that 11∑∑∑indicate to you that CVS is the one that comes 12∑∑∑up with or determines what the usual and 13∑∑∑customary price is for a specific drug? 14∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. 15∑∑∑∑∑∑A.∑∑It doesn't -- it just says that 16∑∑∑their usual and customary price. 17∑∑∑∑∑∑Q.∑∑So CVS' usual and customary price? 18∑∑∑∑∑∑A.∑∑Correct. 19∑∑∑∑∑∑Q.∑∑It doesn't say Medco's usual and 20∑∑∑customary price? 21∑∑∑∑∑∑A.∑∑Correct. 22∑∑∑∑∑∑Q.∑∑Now, w, did Medco as far as you know 23∑∑∑have access to the amounts that CVS charged 24∑∑∑its cash paying customers, people who were not 25∑∑∑using insurance? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 13 of 22 November 02, 2016 57 ∑1∑∑∑∑∑∑A.∑∑I don't on't know what information our 2∑ ∑2∑∑∑auditors had access to. ∑∑ ∑3∑∑ 3∑∑∑ ∑∑∑∑Q. Q.∑∑∑Did you ever see or were you ever ∑4∑∑ 4∑∑∑ ∑made aware of the prices that CVS was charging ∑5∑∑ 5∑∑∑ ∑its cash paying customers? ∑6∑∑ 6∑∑∑ ∑∑∑∑A. A.∑∑∑Not that I recall. ∑7∑∑ 7∑∑∑ ∑∑∑∑Q. Q.∑∑∑When you were negotiating contracts ∑8 8∑ ∑∑ ∑∑ ∑with CVS pharmacy, did you ever discuss or in 9∑ ∑9∑∑ ∑∑ ∑the context of those negotiations receive any 10∑∑ ∑∑ ∑data from CVS on the prices that they were -- 11∑∑ ∑∑ ∑that CVS was charging the cash paying 12∑∑ ∑∑ ∑customers? 13∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑Not that I can recall. 14∑∑∑∑∑∑Q. ∑∑ Q.∑∑∑Did you ever discuss the amounts 15∑∑ ∑∑ ∑that CVS was paying its cash paying customers 16∑∑∑in any of those negotiations? 17∑∑∑∑∑∑A. A.∑∑∑Not that I can recall. 18∑∑∑∑∑∑Q.∑∑You talked earlier about the 19∑∑∑importance of -- that one of the main purposes 20∑∑∑of your job was to -- I believe you said get a 21∑∑∑handle on and the savings negotiated with 22∑∑∑prescription drugs, correct?∑One of the 23∑∑∑things that PBMs did was try to get a handle 24∑∑∑on what people were paying for prescription 25∑∑∑drugs and try to minimize that cost; is that U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 14 of 22 November 02, 2016 64 ∑1∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. ∑2∑∑∑∑∑∑A.∑∑You would -- I'm confused. ∑3∑∑∑∑∑∑Q.∑∑Sure.∑You said before -- you ∑4∑∑∑testified before that the co-payment was set ∑5∑∑∑or calculated based on what was the terms in ∑6∑∑∑the contract between -- between Medco and the ∑7∑∑∑customer or the client, correct? ∑8∑∑∑∑∑∑A.∑∑If I remember correctly, the co-pay ∑9∑∑∑was determined by the client. 10∑∑∑∑∑∑Q.∑∑Okay.∑ kay.∑ ∑And do you know whether that 11∑∑ ∑∑ ∑co-payment that the client determined was 12∑∑ ∑∑ ∑based -- did the client look to any 13∑∑ ∑∑ ∑information it received from CVS in 14∑∑ ∑∑ ∑determining what that co-payment was? 15∑∑ ∑∑ ∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. MAINIGI:∑ 16∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑I didn't participate in those 17∑∑ ∑∑ ∑co-pay discussions, so I'm not sure how they 18∑∑ ∑∑ ∑arrived at what co-pay they wanted to charge 19∑∑∑or not charge. 20∑∑∑∑∑∑Q.∑∑Okay.∑So it's possible, you just 21∑∑∑weren't familiar with that aspect of the 22∑∑∑contract?∑It's possible that when determining 23∑∑∑what a co-payment would be for a particular 24∑∑∑customer, that it was based in part at least 25∑∑∑on information that was received from? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 15 of 22 November 02, 2016 68 ∑1∑∑∑usual and customary price for those drugs; do ∑2∑∑∑you see that, the first line, first and second ∑3∑∑∑line? ∑4∑∑∑∑∑∑A.∑∑Yes, okay, okay, got it. ∑5∑∑∑∑∑∑Q.∑∑Do you have any information ∑6∑∑∑regarding whether or not CVS did, in fact, 6∑ ∑7∑∑∑report or what price CVS did, in fact, report 7∑ ∑8∑∑∑as its usual and customary price for any drug? 8∑ ∑9∑∑∑∑∑∑∑∑∑MS. MAINIGI: 9∑ MAINIGI:∑ ∑Objection to form. 10∑∑∑∑∑∑A. A.∑∑∑I don't have any knowledge of it at 11∑∑∑all. 12∑∑∑∑∑∑Q.∑∑If you could turn to page 20, which 13∑∑∑is paragraph 54 of this Complaint.∑Now, 14∑∑∑paragraph 54 reads "Based on the data reported 15∑∑∑by CVS, third-party payors identified the 16∑∑∑co-payment amount that the patient must pay to 17∑∑∑CVS in a specific transaction."∑That's what 18∑∑∑we talked about before, those co-payments? 19∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. 20∑∑∑∑∑∑Q.∑∑Do you recall that conversation 21∑∑∑talking about co-payments? 22∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. 23∑∑∑∑∑∑A.∑∑Not really, but.... 24∑∑∑∑∑∑Q.∑∑The testimony we talked earlier 25∑∑∑today. U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 16 of 22 November 02, 2016 71 ∑1∑∑∑prices with -- with Medco's customers or you ∑2∑∑∑just focused on the amount that would be ∑3∑∑∑reduced that would be subtracted from the AWP ∑4∑∑∑and the dispensing fee? ∑5∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. ∑6∑∑∑∑∑∑A.∑∑That was the focus of my ∑7∑∑∑contractual obligations. ∑8∑∑∑∑∑∑Q.∑∑The amount that the AWP would be ∑9∑∑∑reduced by and the dispensing fee? 10∑∑∑∑∑∑A.∑∑Yes. 11∑∑∑∑∑∑Q.∑∑So you didn't negotiate with the -- 12∑∑∑with the pharmacies on what the U&C price 13∑∑∑would be? 14∑∑∑∑∑∑A.∑∑No. 15∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. 16∑∑∑∑∑∑Q.∑∑Okay.∑I think we talked about this 17∑∑∑before but just to be clear, in your role at 18∑∑∑Medco, you had no information about what CVS 19∑∑∑was charging its cash paying customers who did 20∑∑∑not have any insurance? 21∑∑∑∑∑∑A.∑∑Correct. 22∑∑∑∑∑∑Q.∑∑Okay.∑Now, you mentioned Tom 23∑∑∑Morrison before, you remember that? 24∑∑∑∑∑∑A.∑∑Um-hum. 25∑∑∑∑∑∑Q.∑∑Okay.∑ kay.∑Do you recall ever having a U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 17 of 22 November 02, 2016 72 ∑1∑∑∑conversation versation with Tom Morrison about U&C? 2∑ ∑2 A.∑ ∑∑∑∑∑∑A. ∑∑Thousands of conversations with ∑3∑∑∑Tom, but I don't remember a specific 3∑ ∑4∑∑∑conversation with him one way or another about 4∑ ∑5∑∑∑U&C. 5∑ ∑6∑∑∑∑∑∑Q. 6∑ Q.∑∑∑Do you ever remember having ∑7∑∑∑conversation with him about -- specifically 7∑ ∑8∑∑∑about the HSP program? 8∑ ∑9∑∑∑∑∑∑A. 9∑ A.∑∑∑I don't recall any conversation 10∑∑∑with him about the -- 11∑∑∑∑∑∑Q. Q.∑∑∑HSP program? 12∑∑∑∑∑∑A. A.∑∑∑HSP program. 13∑∑∑∑∑∑Q.∑∑So if he testified that he spoke 14∑∑∑with you about the HSP program and you 15∑∑∑specifically told him that Medco was fine with 16∑∑∑CVS not including the HSP price in its 17∑∑∑calculation of U&C, that would be contrary to 18∑∑∑what you recall; is that right? 19∑∑∑∑∑∑∑∑∑MR. SMITH:∑Objection; form. 20∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection; form. 21∑∑∑∑∑∑Misstates testimony. 22∑∑∑∑∑∑A.∑∑I don't remember any specific 23∑∑∑conversations. 24∑∑∑∑∑∑Q.∑∑Okay.∑Taking a step back, in 25∑∑∑preparing for today's deposition, what did you U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 18 of 22 November 02, 2016 99 ∑1∑∑∑"or Meijer's, then they" -- "that would have ∑2∑∑∑U&C implications."∑Do you recall that ∑3∑∑∑conversation with Vijay? ∑4∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. ∑5∑∑∑∑∑∑A.∑∑I do not. ∑6∑∑∑∑∑∑Q.∑∑Is that consistent with your ∑7∑∑∑understanding of what Medco's policy was with ∑8∑∑∑respect to U&C and what does or does not ∑9∑∑∑count? 10∑∑∑∑∑∑A.∑∑Is what consistent? 11∑∑∑∑∑∑Q.∑∑What Vijay is reporting here. 12∑∑∑∑∑∑∑∑∑MS. MAINIGI:∑Objection to form. 13∑∑∑∑∑∑A.∑∑I don't know. 14∑∑∑∑∑∑Q.∑∑So do you have any knowledge 15∑∑ ∑∑ ∑regarding what Walmart's discount program was? 16∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑No. 17∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑Do you have any knowledge regarding 18∑∑ ∑∑ ∑how CVS' HSP program compares to Walmart's 19∑∑ ∑∑ ∑discount program? 20∑∑ ∑∑ ∑∑∑∑A. A.∑∑∑No. 21∑∑ ∑∑ ∑∑∑∑Q. Q.∑∑∑So do you know what the eligibility 22∑∑ ∑∑ ∑criteria was for CVS' HSP program? 23∑∑∑∑∑∑A. A.∑∑∑I do not. 24∑∑∑∑∑∑Q. Q.∑∑∑Do you know what the enrollment 25∑∑∑fee, annual enrollment fee was? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 19 of 22 November 02, 2016 100 ∑1∑∑∑∑∑∑A.∑∑I do o not. 2∑ ∑2∑∑∑∑∑∑Q. ∑∑ Q.∑∑∑Do you know whether, other than ∑3∑∑ 3∑∑∑ ∑paying the enrollment fee, there was any other ∑4∑∑ 4∑∑∑ ∑eligibility requirement for CVS' HSP program? ∑5∑∑∑∑∑∑A. 5∑ A.∑∑∑I don't know. ∑6∑∑∑∑∑∑Q.∑∑I'm going to hand you what's been ∑7∑∑∑marked as Plaintiff's Exhibit 17.∑For the ∑8∑∑∑record, this is marked CVSC0005170.∑The cover ∑9∑∑∑page I think is a CVS form, but if you turn to 10∑∑∑the second page, this is a letter from you to 11∑∑∑Mr. Morrison dated June 5, 2006; do you see 12∑∑∑that? 13∑∑∑∑∑∑A.∑∑Yes. 14∑∑∑∑∑∑Q.∑∑Do you recall writing this letter 15∑∑∑to Mr. Morrison? 16∑∑∑∑∑∑A.∑∑No, I don't recall writing this 17∑∑∑letter. 18∑∑∑∑∑∑Q.∑∑If you would just take a minute and 19∑∑∑read it.∑Okay. 20∑∑∑∑∑∑∑∑∑If you could turn to -- this is a 21∑∑∑letter you wrote to Tom Morrison, correct? 22∑∑∑∑∑∑A.∑∑Yes. 23∑∑∑∑∑∑Q.∑∑And we talked earlier about that 24∑∑∑Tom Morrison was someone you dealt with 25∑∑∑regularly at CVS? U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 20 of 22 November 02, 2016 120 ∑1∑∑∑someone was found to not be complying with the ∑2∑∑∑usual and customary pricing requirements? ∑3∑∑∑∑∑∑∑∑∑MR. SMITH:∑Same objection. ∑4∑∑∑∑∑∑A.∑∑Yeah, I don't have any reason to ∑5∑∑∑agree or disagree.∑I don't know. ∑6∑∑∑∑∑∑Q.∑∑Well, when you were talking about ∑7∑∑∑your time at Medco, you said one of the -- one ∑8∑∑∑of the policing options that Medco had for ∑9∑∑∑pharmacy providers was the audit right, 10∑∑∑correct? 11∑∑∑∑∑∑A.∑∑You know, I'm not -- I'm a little 12∑∑∑uncomfortable with your characterization.∑Our 13∑∑∑audit group had the rights to audit and 14∑∑∑determine whether clients, clients, 15∑∑∑participants were compliant with our -- with 16∑∑∑their contractual obligation with respect to 17∑∑∑our agreements with them. 18∑∑∑∑∑∑Q.∑∑And the contractual agreements 19∑∑∑included a policy on usual and customary, 20∑∑∑correct? 21∑∑∑∑∑∑A.∑∑Usual and customary was a part of 22∑∑∑the contractual requirements of our agreements 23∑∑∑with the provider network. d so while you were there at 24∑∑∑∑∑∑Q.∑∑And 25∑∑∑Medco, the audit group could have audited U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 21 of 22 November 02, 2016 121 ∑1∑∑∑pharmacy rmacy providers to determine if they were 2∑ ∑2∑∑ ∑∑ ∑complying with the U&C policy, fair? ∑3∑∑ 3∑∑∑ ∑∑∑∑A. A.∑∑∑Yeah, I don't know.∑ know.∑I mean, the ∑4∑∑ 4∑∑∑ ∑audit folks do whatever the audit folks do, ∑5∑∑ 5∑∑∑ ∑whatever that is is whatever that is.∑I'm not is.∑ ∑6∑∑ 6∑∑∑ ∑familiar enough with that to say what they ∑7∑∑ 7∑∑∑ ∑were auditing, how they conducted those audits ∑8∑∑∑and what they did to make sure folks were 8∑ ∑9∑∑∑compliant. 9∑ 10∑∑∑∑∑∑Q.∑∑If an audit determined that someone 11∑∑∑was violating a particular policy, say for 12∑∑∑example, the usual and customary policy, would 13∑∑∑Medco have been able to recoup money from that 14∑∑∑pharmacy as one option? 15∑∑∑∑∑∑A.∑∑I don't know. 16∑∑∑∑∑∑Q.∑∑Did you ever try to recoup money 17∑∑∑from a pharmacy because they misstated 18∑∑∑something? 19∑∑∑∑∑∑A.∑∑Did I specifically? 20∑∑∑∑∑∑Q.∑∑Were you aware -- let me restate 21∑∑∑that.∑Were you aware of Medco ever seeking 22∑∑∑recoupment from a pharmacy because of a 23∑∑∑failure to properly administrate the claims 24∑∑∑under the contract? 25∑∑∑∑∑∑A.∑∑I'm aware that I have a very small, U.S. LEGAL SUPPORT (877) 479-2484 YVer1f Cal Case 4:15-cv-03504-YGR Document Corum 440-7 Filed 05/05/20 Page 22 of 22 November 02, 2016 145 ∑1∑∑∑∑∑∑∑∑∑C E R T I F I C A T E ∑2 ∑3∑∑∑∑STATE OF NEW JERSEY∑∑) ∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑∑:∑SS.: ∑4∑∑∑∑COUNTY OF MONMOUTH∑∑∑) ∑5 ∑6∑∑∑∑∑∑∑∑I, AYLETTE GONZALEZ, a Notary Public ∑7∑∑∑∑for and within the State of New Jersey, do ∑8∑∑∑∑hereby certify: ∑9∑∑∑∑∑∑∑∑That the witness, CAL CORUM, whose 10∑∑∑∑examination is hereinbefore set forth was 11∑∑∑∑duly sworn and that such examination is a 12∑∑∑∑true record of the testimony given by that 13∑∑∑∑witness. 14∑∑∑∑∑∑∑∑I further certify that I am not 15∑∑∑∑related to any of the parties to this action 16∑∑∑∑by blood or by marriage and that I am in no 17∑∑∑∑way interested in the outcome of this matter. 18∑∑∑∑∑∑∑∑IN WITNESS WHEREOF, I have hereunto 19∑∑∑∑set my hand this 2nd day of November, 2016. 20 21∑∑∑∑∑∑∑∑∑∑__________________________ ∑∑∑∑∑∑∑∑∑∑∑∑∑AYLETTE GONZALEZ 22 23 24 25 U.S. LEGAL SUPPORT (877) 479-2484