FEHBP manufacturer rebates totaled $107 mil. in 1995; PCS, Medco get 10% -- GAO.

Executive Summary

FEHBP MANUFACTURER REBATES TOTALED $107 MIL. IN 1995, a July 19 interim report by the General Accounting Office on the use of pharmacy benefit managers in the Federal Employees Health Benefits Program states. Manufacturer discounts accounted for about $107 mil., or 21.2%, of FEHBP pharmacy savings accrued through using PBMs in 1995, according to the plan administrator Blue Cross/Blue Shield. The rebates were negotiated by the two PBMs working on the contract: Medco for mail order and PCS for retail.