TGIF

Govexec.com notes that OPM required FEHB plans to pay the U.S. Treasury for any 2011 rebate for failure to meet the 85% medical loss ratio under the Affordable Care Act to the U.S. Treasury. OPM uses the funds to moderate changes in plan premiums. This is a perfectly legal approach which Govexec.com acknowledges. This really is not a big deal because the majority of FEHB plans are enrolled in fee for service plans like Blue Cross FEP and GEHA. These retrospectively experienced rated contracts routine produce a medical loss ratio over 90%, OPM also now has a medical loss ratio based pricing methodology for HMOs participating in the FEHB Program which incents compliance with the ACA's requirements.

The Defense Department announced yesterday that effective January 1, 2013, the U.S. Postal Service must stop delivery to FPO and APO addresses of imported pharmaceuticals and other prohibited items into Germany and the European Union. This puts the ki-bosh on the use of U.S. based mail order pharmacies filling prescriptions for U.S. expatriates in Germany and there is a significant contingent of FEHBP enrollees in Germany. The FEHBlog is aware that FEHB plans serving those enrollees are on top of this issue.

The German action strikes the FEHBlog as overkill but there's no question about the importance of keeping a safe drug supply. Reuters reports that the Food and Drug Administration "working with international regulatory and law enforcement agencies from about 100 countries, said on Thursday that it took action against more than 4,100 Internet pharmacies, bringing civil and criminal charges, removing offending websites and seizing drugs worldwide."