H.R. 979 (112th): FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act

Introduced:
Mar 09, 2011 (112th Congress, 2011–2013)
Sponsor:
Rep. Stephen Lynch [D-MA9]
Status:
Died (Referred to Committee)
See Instead:
This bill was re-introduced as H.R. 1367 on Mar 21, 2013. See H.R. 1367 for current action on this subject.

The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


3/9/2011--Introduced.
FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act - Prohibits the Office of Personnel Management (OPM) from entering a contract or approving a health benefits plan with a carrier that is a party to a pharmacy benefit manager (PBM) carrier arrangement to provide or administer prescription drug coverage under the Federal Employees Health Benefits Program (FEHBP) unless the PBM and the carrier comply with the requirements for PBM carrier arrangements set forth by this Act. Directs OPM to terminate a contract or discontinue a plan that fails to comply with such requirements.
Prohibits:
(1) a PBM under a carrier arrangement from being under common corporate control with a prescription drug manufacturer or a retail pharmacy, and
(2) OPM from permitting a carrier under common corporate control with a PBM to earn a profit from such control.
Sets forth terms and requirements for PBM carrier arrangements under the FEHBP, including:
(1) drug substitution restrictions,
(2) PBM reimbursement of carriers,
(3) sale by a PBM of utilization and claims data,
(4) drug pricing and the basis for reimbursement,
(5) PBM provision to plan enrollees of an explanation of benefits statement regarding prescription drugs,
(6) nondiscriminatory contracts regarding required participation,
(7) OPM access to PBM contract information, and
(8) civil monetary penalties for making false statements or claims to the government.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.


No summary available.

House Democratic Caucus Summary

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The bill contains the following citations to other parts of U.S. law:

United States Code

The United States Code is the compilation of permanent laws enacted by Congress. Temporary and other non-permanent laws do not appear in the United States Code. (About half of the United States Code is the law itself, called positive law. The other half is merely a compilation of the laws but has no legal significance.)

  • Title 5: GOVERNMENT ORGANIZATION AND EMPLOYEES
  • Part III: EMPLOYEES
  • Subpart G: Insurance and Annuities
  • Chapter 89: HEALTH INSURANCE
  • Section 8902: Contracting authority
  • Title 21: FOOD AND DRUGS
  • Chapter 9: FEDERAL FOOD, DRUG, AND COSMETIC ACT
  • Subchapter V: DRUGS AND DEVICES
  • Part A: Drugs and Devices
  • Section 355: New drugs
  • Other Citations
  • 5 U.S.C. 8915

Other Citations

  • 5 U.S.C. Chapter 89