Tuesday
Mar022010
New Legislation To "Blow Up" Federal Health Benefits Program Would Worsen System, Warn Pharmacy Benefit Managers
By Monique Cala
University of New Mexico/Talk Radio News Service
Pharmaceutical Care Management Association President and CEO Mark Merritt told Talk Radio News Service Tuesday that he opposes legislation introduced by Rep. Stephen Lynch (D-Mass.) that would dramatically alter the Federal Employee Health Benefits Program (FEHBP).
“The goal of the legislation is to extensively improve benefits for federal workers. But…in reality it would take a very, very popular program and undermine its ability to save money and offer numerous choices,” said Merritt.
Lynch’s bill, the FEHBP Prescription Drug Integrity, Transparency and Cost Savings Act (HR 4489), would increase oversight of the tools used by pharmacy benefit managers to negotiate reduced drug costs for federal employees. During a House Oversight Committee hearing last week, Lynch suggested that Congress should “blow up” the federal health benefits program. (see video below)
But Merritt said requiring pharmacy benefit managers (PBMs) to openly disclose how they negotiate discounts from drug companies is useless information for the consumer. The legislation would mainly help drug makers and stores find ways to raise prices during the negotiation process.
Merritt compared the transition to that of Medicaid, where prices are subsidized, and unlike PBMs, the government’s main goal is not to negotiate prices.
“What this bill would do is make the federal employees program more like the Medicaid program for the poor with price controls, out of control spending, fewer choices and ultimately a subpar program,” said Merritt. “Certainly not a program that its federal employees have grown accustomed to.”
Merritt said he doesn’t believe Lynch designed the legislation to hurt the program, but suggested the Congressman may not completely understand what his bill would do.
“I think the last thing people with good health benefits want right now, particularly federal employees, is to have Congress come in and micromanage and change their benefits and reduce their choices in an attempt to cut spending on the program.”
University of New Mexico/Talk Radio News Service
Pharmaceutical Care Management Association President and CEO Mark Merritt told Talk Radio News Service Tuesday that he opposes legislation introduced by Rep. Stephen Lynch (D-Mass.) that would dramatically alter the Federal Employee Health Benefits Program (FEHBP).
“The goal of the legislation is to extensively improve benefits for federal workers. But…in reality it would take a very, very popular program and undermine its ability to save money and offer numerous choices,” said Merritt.
Lynch’s bill, the FEHBP Prescription Drug Integrity, Transparency and Cost Savings Act (HR 4489), would increase oversight of the tools used by pharmacy benefit managers to negotiate reduced drug costs for federal employees. During a House Oversight Committee hearing last week, Lynch suggested that Congress should “blow up” the federal health benefits program. (see video below)
But Merritt said requiring pharmacy benefit managers (PBMs) to openly disclose how they negotiate discounts from drug companies is useless information for the consumer. The legislation would mainly help drug makers and stores find ways to raise prices during the negotiation process.
Merritt compared the transition to that of Medicaid, where prices are subsidized, and unlike PBMs, the government’s main goal is not to negotiate prices.
“What this bill would do is make the federal employees program more like the Medicaid program for the poor with price controls, out of control spending, fewer choices and ultimately a subpar program,” said Merritt. “Certainly not a program that its federal employees have grown accustomed to.”
Merritt said he doesn’t believe Lynch designed the legislation to hurt the program, but suggested the Congressman may not completely understand what his bill would do.
“I think the last thing people with good health benefits want right now, particularly federal employees, is to have Congress come in and micromanage and change their benefits and reduce their choices in an attempt to cut spending on the program.”
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Mark Merritt, Monique Cala, Rep. Lynch in Congress, Frontpage 2
Mark Merritt, Monique Cala, Rep. Lynch in Congress, Frontpage 2