Jan 22 2010
The Pharmaceutical Care Management Association (PCMA) released
the following statement today on new legislation introduced by
Congressman Stephen F. Lynch (D-Mass.) — the FEHBP Prescription Drug
Integrity, Transparency, and Cost Savings Act (H.R. 4489) — which
would increase prescription drug costs and reduce choices for federal
employees:
“Congress has enough on its plate without also
trying new experiments on the successful Federal Employees Health
Benefits Program (FEHBP), one of our nation’s most proven health benefit
programs. FEHBP is one of the best-functioning, well-regarded health
programs in America and should not be subject to wholesale political
changes.”
“Congress has enough on its plate without also
trying new experiments on the successful Federal Employees Health
Benefits Program (FEHBP), one of our nation’s most proven health benefit
programs. FEHBP is one of the best-functioning, well-regarded health
programs in America and should not be subject to wholesale political
changes.
“Health care changes must improve quality, lower costs, and enhance
choice and competition. This new legislation runs counter to these goals
by radically changing the way federal employees’ prescription drug
benefits are administered and would make the FEHBP operate more like
those provided through other federal agencies that significantly limit
prescription drug choices.
“The legislation would force mandated disclosure of sensitive pricing
information, giving the upper-hand to drug makers and drug stores to
charge higher prices at the expense of federal employees. Numerous
economists and budget experts — including the Federal Trade Commission —
have explored this issue and found that the wrong kind of transparency
increases, rather than decreases, costs.
“The federal government uses pharmacy benefit managers (PBMs) to
ensure that its employees have the most affordable, safe, flexible, and
generous prescription drug benefits possible. PBMs lower drug benefit
costs by encouraging the use of generic drug alternatives, negotiating
discounts from manufacturers and drug stores, saving money with home
delivery, and using health information technology like e-prescribing to
reduce waste and improve patient safety.
“The utilization of these tools is important as the FEHBP is designed to
keep the federal government competitive in attracting and retaining
personnel who might otherwise choose to work in the private sector. This
private sector approach is much different from the ones used by other
government programs such as the Veterans Administration (VA). To save
money, those programs simply use artificial price controls, severely
restrict drug choices and, in the case of the VA, include only a handful
of the nation’s 60,000 pharmacies in their networks. The draconian steps
included in this legislation would significantly undermine the goals of
the Office of Personnel Management (OPM).
“OPM can and does periodically audit, review, and change the way it
manages FEHBP drug benefits. Policymakers should be wary of this
legislation and any potential changes that would disrupt benefits for
millions of federal workers, especially when considering that a recent
OPM survey found that the overwhelming majority of federal employees are
satisfied with their health benefits by an almost 7-to-1 margin.”
Source: Pharmaceutical Care Management Association