U.S. Employees Health Benefits:

Status of Contractor's Nonlegislative Recommendations to Reduce Costs

HRD-89-6: Published: Dec 19, 1988. Publicly Released: Jan 19, 1989.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

In response to a congressional request, GAO provided information on the Office of Personnel Management's (OPM) efforts to implement a contractor's nonlegislative recommendations to correct problems in the Federal Employees Health Benefits Program (FEHBP).

GAO found that OPM: (1) expressed concern that implementing uniform cost-containment measures could result in the loss of enrollees to plans using less stringent methods; (2) believed that the contractor's benefit plan design recommendations should be considered as part of a major legislative program overhaul; (3) planned to terminate 24 health maintenance organizations by the end of 1989; and (4) planned to implement a letter-of-credit arrangement with the Department of the Treasury, which would minimize the potential for misuse of FEHBP funds and reduce OPM enforcement. GAO also found that: (1) OPM plans to conduct a short-term study to estimate the benefits and costs of specific cost-containment measures; (2) OPM plans to retain a consultant to study the feasibility of applying diagnosis-related groups (DRG) to FEHBP, including identifying data sources that could be used to establish DRG payment rates; and (3) the contractor estimated that $500 million in annual savings would result from full implementation of its recommendations.

Sep 29, 2016

Sep 28, 2016

Sep 15, 2016

Sep 14, 2016

Sep 12, 2016

Sep 9, 2016

Sep 6, 2016

Looking for more? Browse all our products here