OPM Opposes HR 4489

A recent issue of My Federal Retirement announces that the Office of Personnel Management has taken a position of opposition to a bill that is supposed to increase the transparency of prescription drug costs. At first glance, this seems puzzling. A closer look reveals that HR 4489 would restrict the ability of OPM to negotiate for federal employee health benefits:

OPM said the bill, HR 4489, would restrict how OPM contracts with pharmacy benefit managers (PBMs) and impose "significant administrative costs" that could be passed on to federal employees. John O'Brien, OPM's director of planning and policy analysis, told lawmakers that OPM wants to write its own methods of oversight, contracting models and pricing into the contracts it strikes with PBMs.

"Requiring the use of specific contracting models and pricing methods via legislation will not allow the program flexibility in an industry where business practices are rapidly evolving," O'Brien said.