Home Media Center News Releases

Washington, D.C.—Today’s announcement by the Office of Personnel Management (OPM) that federal health insurance premiums will rise by an average of 6.4 percent in 2016 further underscores the need for Congress to act on cost-saving prescription drug contracting and benefit management reforms for the Federal Employees Health Benefits Program (FEHBP), according to the head of the National Treasury Employees Union (NTEU).

OPM attributed the higher rate of increase in large part to increased prescription drug utilization.

“NTEU views prescription drug reforms as an essential way to better control drug spending in FEHBP, which would reduce costs for federal employees and retirees,” NTEU National President Tony Reardon said. “FEHBP enrollees are paying more than they should.”

NTEU has long pressed Congress to support Rep. Stephen Lynch’s (D-Mass.) legislation—H.R. 2175. The bill would provide OPM with enhanced oversight and contracting authority to ensure that FEHBP participants are receiving the best possible drug prices. Additionally under the bill, Pharmacy Benefit Managers (PBMs), that operate as middlemen to negotiate prescription drug prices with drug companies and pharmacies on behalf of individual FEHBP plans, would be required to return any rebates, incentives, and other price discounts obtained from drug manufacturers to FEHBP, and to adopt new transparency and disclosure policies.

“NTEU will continue to make the case for Congress to act on these reforms,” said President Reardon.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.