Express Scripts 2011 Annual Report Download - page 21

Express Scripts 2011 Annual Report 19
stolen as part of the same incident. We continue to work with the Federal Bureau of Investigation in its investigation of the
threats. We have followed state data breach notification laws in notifying affected members and states’ attorneys general.
Further, we established a reward of $1 million for the person or persons who provide information resulting in the arrest and
conviction of those responsible for these criminal acts. While we believe we have complied in all material respects with all
State and Federal reporting requirements, there can be no assurance that the unauthorized access of personal information or
protected health information will not result in inquiries or action being taken by Federal or State officials, or additional
private litigation.
EM Services. Many of the laws and regulations cited above with respect to our PBM activities also apply with
respect to our various EM services. Of particular relevance are the federal and state anti-kickback laws, state pharmacy
regulations and HIPAA, which are described above. In addition, as a condition to conducting our wholesale business, we
must maintain various permits and licenses with the appropriate state and federal agencies, and we are subject to various
wholesale distributor laws that regulate the conduct of wholesale distributors, including, but not limited to, maintaining
pedigree papers in certain instances.
Service Marks and Trademarks
We, and our subsidiaries, have registered certain service marks including ―EXPRESS SCRIPTS®‖,
―CURASCRIPT®‖, ―CONNECTYOURCARE®‖ and ―CONSUMEROLOGY®‖ with the United States Patent and
Trademark Office. Our rights to these marks will continue so long as we comply with the usage, renewal filings, and other
legal requirements relating to the usage and renewal of service marks.
Insurance
Our PBM operations, including the dispensing of pharmaceutical products by our home delivery pharmacies, our
EM operations, including the distribution of specialty drugs, and the services rendered in connection with our disease
management operations, may subject us to litigation and liability for damages. Commercial insurance coverage is difficult
to obtain and cost prohibitive, particularly for certain types of claims. As such, we may maintain significant self-insured
retentions when deemed most appropriate and cost effective. We have established certain self-insurance accruals to cover
potential claims. There can be no assurance we will be able to maintain our general, professional, or managed care errors
and omissions liability insurance coverage in the future or that such insurance coverage, together with our self-insurance
accruals, will be adequate to cover potential future claims. A claim, or claims, in excess of our insurance coverage could
have a material adverse effect upon our consolidated results of operations, consolidated financial position and/or
consolidated cash flow from operations.
Employees
As of December 31, 2011 and 2010, we employed approximately 13,120 and 13,170 employees, respectively,
which includes approximately 260 and 220 employees in Canada, respectively. Approximately 630 of the United States
employees are members of collective bargaining units. Specifically, we employ members of the Service Employees
International Union at our Bensalem, Pennsylvania facility; members of the American Federation of State, County and
Municipal Employees at our Harrisburg, Pennsylvania facility; and members of the United Food and Commercial Workers
Union at our Albuquerque, New Mexico facility.