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<classification authority="sudocs">GA 1.13:HEHS-00-34</classification>
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 <subject>Pharmaceutical industry</subject>
 <subject>Veterans</subject>
 <subject>Veterans benefits</subject>
 <subject>Health care services</subject>
 <subject>Pharmacological research</subject>
 <subject>Health care cost control</subject>
 <subject>Drugs</subject>
 <subject>Health insurance</subject>
 <subject>Managed health care</subject>
 <subject>Health services administration</subject>
 <identifier>VA Veterans Integrated Service Network</identifier>
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<titleInfo>
 <title>VA Health Care: VA&apos;s Management of Drugs on Its National</title>
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<abstract>Pursuant to a congressional request, GAO reviewed how the Department of
Veterans&apos; Affairs&apos; (VA) manages its national formulary and how drugs
other than those on the formulary are made available to veterans.&lt;p/&gt;GAO noted that: (1) VA&apos;s national formulary is administered by the
Pharmacy Benefits Management Strategic Healthcare Group (PBM), a
strategy modeled after one commonly used in private health care systems;
(2) PBM adds drugs to, and deletes drugs from, the national formulary on
the basis of a review of current literature related to drugs&apos; safety and
efficacy and the contributions they can make in treating veterans; (3)
PBM also performs drug class reviews that determine which drugs are
therapeutically interchangeable--essentially equivalent in terms of
efficacy, safety, and outcomes; (4) this determination allows VA to
obtain better prices for one or more of these drugs by using
competitively bid contracts; (5) PBM safeguards against inappropriate
use by requiring that clinical guidelines be followed when some drugs
are used, limiting prescribing privileges in certain cases to specially
trained physicians; (6) in other cases, PBM requires consultation with a
specialist before a drug can be prescribed; (7) drugs not on the
national formulary may be available to veterans through independent
formularies maintained by Veterans Integrated Service Networks (VISN)
and some medical centers; (8) these formularies are designed to provide
local facilities flexibility by giving physicians access to additional
drugs that meet the special needs of their patients; (9) if prescribers
believe that a patient needs a drug that is not on the national, VISN,
medical center formulary, they may request a nonformulary drug waiver,
which would allow the prescriber to provide the nonformulary drug; (10)
new drugs may be added to VISN and medical center formularies
immediately upon Food and Drug Administration approval; (11) however, VA
policy states that new drugs generally may not be added to the national
formulary until they have been on the U.S. market for at least 1 year
because VA believes veterans may be exposed to potential side effects
that are not identified during the drug review and approval process; and
(12) this potentially allows veterans treated in some facilities to
benefit from new drugs before veterans in other locations, but it may
also expose them to any side effects that are identified within the
first year of a drug&apos;s general use.</abstract>
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<identifier type="preferred citation">GAO/HEHS-00-34</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Pharmaceutical industry</topic>
 <topic>Veterans</topic>
 <topic>Veterans benefits</topic>
 <topic>Health care services</topic>
 <topic>Pharmacological research</topic>
 <topic>Health care cost control</topic>
 <topic>Drugs</topic>
 <topic>Health insurance</topic>
 <topic>Managed health care</topic>
 <topic>Health services administration</topic>
 <topic>VA Veterans Integrated Service Network</topic>
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