Government Operations:

Blue Cross FEHBP Pharmacy Benefits

HEHS-96-182R: Published: Jul 19, 1996. Publicly Released: Aug 9, 1996.

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Pursuant to a congressional request, GAO provided information on the Blue Cross and Blue Shield Association's two pharmacy benefit managers and the services they provide to federal employee benefit plans. GAO noted that: (1) to control drug costs, the Association is requiring Medicare Part B participants to pay the standard copayment for drugs bought at participating retail pharmacies, but it is waiving copayments on drugs bought through its mail-order program for those participants; (2) the Association expects this change to achieve significant savings and prevent a premium increase in standard option coverage; (3) the Association's mail-order subcontractor has had significant difficulty meeting its customer-service performance measures because the increase in mail orders has been much larger and quicker than expected; (4) the subcontractor has increased its processing capacity to meet the unexpected demand; (5) retail pharmacies have experienced a 36 percent decrease in drug sales to Part B participants and a 7 percent decrease in drug sales to all enrollees; and (6) the Association believes its pharmacy benefits managers provide valuable services to the federal employee health plan, meet most of their contractual performance measures, and produce significant savings.

Dec 18, 2014

Dec 17, 2014

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    State and Local Governments' Fiscal Outlook:

    2014 Update
    GAO-15-224SP: Published: Dec 17, 2014. Publicly Released: Dec 17, 2014.

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