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<classification authority="sudocs">GA 1.13:T-HEHS-96-206</classification>
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 <subject>Federal employees</subject>
 <subject>Health insurance cost control</subject>
 <subject>Pharmaceutical industry</subject>
 <subject>Health services administration</subject>
 <subject>Insurance premiums</subject>
 <subject>Customer service</subject>
 <subject>Contractor performance</subject>
 <subject>Employee medical benefits</subject>
 <subject>Drugs</subject>
 <identifier>Federal Employees Health Benefits Program</identifier>
 <identifier>Blue Cross and Blue Shield Service Benefit Plan</identifier>
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<titleInfo>
 <title>Blue Cross and Blue Shield: Change in Pharmacy Benefits Affects Federal Enrollees</title>
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<abstract>Of the 400 health plans available to federal workers, the Blue Cross and
Blue Shield plan is the largest, covering nearly 42 percent of the four
million federal enrollees. To control drug costs, Blue Cross and Blue
Shield recently began requiring federal enrollees to pay 20 percent of
the price of prescriptions purchased at participating retail pharmacies.
Previously, federal enrollees did not have to pay anything for
prescription drugs. Enrollees may continue to receive drugs free of
charge, however, if they buy them through the plan&apos;s mail order program.
Members of Congress and retail pharmacies have raised concerns about the
quality of mail order services and the effect of the change on the
business of retail pharmacies that serve plan enrollees. To provide
pharmacy services to its federal employee health plan, Blue Cross and
Blue Shield contracts with two pharmacy benefit managers: PCS health
Systems, Inc., which provides retail prescription drug services, and
Merck-Medco Managed Care, Inc., which provides mail order drug services.
This testimony discusses (1) Blue Cross and Blue Shield&apos;s reasons for
the benefit change, (2) how it was implemented, (3) the change&apos;s effect
on retail pharmacies, and (4) the extent to which PCS and Medco have met
their contract requirements for services provided to the federal health
plan.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-96-206</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Federal employees</topic>
 <topic>Health insurance cost control</topic>
 <topic>Pharmaceutical industry</topic>
 <topic>Health services administration</topic>
 <topic>Insurance premiums</topic>
 <topic>Customer service</topic>
 <topic>Contractor performance</topic>
 <topic>Employee medical benefits</topic>
 <topic>Drugs</topic>
 <topic>Federal Employees Health Benefits Program</topic>
 <topic>Blue Cross and Blue Shield Service Benefit Plan</topic>
 <topic>Medicare Program</topic>
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