Federal Daily - April 21, 2008

NTEU Critical of OPM on FEHBP Cost-Shifting

The National Treasury Employees Union (NTEU) raised concerns about the vigilance of the Office of Personnel Management (OPM) following reports of dramatic drug-price increases for some participants of the Federal Employee Health Benefits Program (FEHBP). NTEU President Colleen Kelley—who raised the issue in a letter to OPM Director Linda Springer—said that if the reports of such increases are accurate, OPM should have been more watchful in overseeing the use by some insurers of practices that drive up costs of drugs needed for some serious illnesses. Under such practices, participants pay a percentage of a drug’s cost—up to one-third, rather than the traditional co-payment—Kelley said in an April 17 statement. Such cost-shifting among so-called Tier 4 drugs could result in costs of thousands of dollars a month for some enrollees, Kelley said. She also expressed “great concern” that companies taking part in the program may have moved ahead with this new pricing system with OPM’s knowledge and approval. If that is so, Kelley said, then OPM has “failed terribly in its obligation” to keep federal employees informed about matters critical to their well-being. To see more, go to: www.nteu.org/PressKits/PressRelease/PressRelease.aspx?ID=1255. 

:: Back to Top ::

APWU Seeks Appointment of Advisory Council

American Postal Workers Union (APWU) President William Burrus on April 14 called on President Bush to appoint a Postal Service Advisory Council (PSAC), noting that the appointment of the panel is required by federal law. The U.S. Postal Service (USPS) is required to consult with the council regarding all aspects of postal operations, Burrus said—adding that such consultations cannot take place if no PSAC members have been appointed. Burrus said postal operations are at a “critical juncture” that require consultation on matters such as the realignment of the postal mail-processing network; implementation of a major new flat-sorting program; establishment of service standards; and implementation of the new rate-setting provisions. Under the law, the postmaster general serves as chairman of the council, the deputy postmaster general serves as vice-chair, and the president appoints 11 other members, including four nominated by postal labor unions; four representatives of major mail users; and three representing the public. To see more, go to: http://apwu.org/news/webart/2008/webart-0831-bush_advcouncil-080414.htm.

:: Back to Top ::

VA, HUD Launch $75 Million Program to House Homeless Vets

The Departments of Veterans Affairs (VA) and Housing and Urban Development (HUD) on April 16 announced the launch of a $75 million effort to provide permanent supportive housing for an estimated 10,000 homeless veterans nationwide. HUD’s Veterans Affairs Supportive Housing Program will provide local public housing agencies (PHAs) with approximately 10,000 rental assistance vouchers specifically targeted to assist homeless vets. In addition, VA and HUD will link local public housing agencies with VA Medical Centers to provide supportive services and case management to eligible homeless veterans, said VA Secretary James Peake. HUD will allocate the housing vouchers to PHAs based on a variety of factors, including the number of reported homeless vets and the proximity of a local VA Medical Center. There are an estimated 100,000 homeless vets in the country. To see more, go to: http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1489.

:: Back to Top ::

Bush Names SBA Chief to Head HUD

President Bush on April 18 announced that he would nominate Small Business Administration (SBA) Administrator Steve Preston to serve as the next Secretary of Housing and Urban Development (HUD). Bush called SBA’s Preston “a strong executive with a quarter century of management experience” who “understands the free enterprise system from every angle.” If confirmed by the Senate, Preston would succeed Alphonso Jackson, who resigned following lawmakers’ calls for him to step down amid a probe into alleged favoritism in awarding HUD contracts. For more, go to: http://www.whitehouse.gov/news/releases/2008/04/20080418-7.html.

:: Back to Top ::