Federal Daily - June 4, 2009

Obama Nominates McHugh for Army Secretary

President Obama on June 2 announced his nomination of Rep. John M. McHugh, R-N.Y., to be the next secretary of the Army. Obama noted that McHugh’s 16 years of services on the House Armed Services Committee “uniquely qualifies him to help lead America’s Army.”  McHugh has served in Congress since 1993, is the ranking Republican on the Armed Services Committee and represents New York’s 23rd District, which includes the northeast sections of Upstate New York and the cities of Plattsburgh and Watertown. “John understands personally and deeply the sacrifices that our soldiers and their families make every day,” Obama said. House Armed Services Committee Chairman Ike Skelton, D-Mo., applauded the nomination. “As secretary of the Army, John McHugh will have the opportunity to make significant contributions to our national security and do even more to support our service members and their families,” Skelton said. “The Army is in excellent hands with John McHugh.” To see more, go to: www.whitehouse.gov/the_press_office/Remarks-by-the-President-in-Nomination-of-John-McHugh-as-Secretary-of-the-Army or www.house.gov/skelton.

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GAO: Specialty Drugs Costly for Some FEHBP Beneficiaries

Federal employees and retirees enrolled in some Federal Employees Health Benefits Program (FEHBP) plans pay hefty sums for some specialty prescription drugs through those plans’ drug benefit programs, according to a Government Accountability Office (GAO) report released June 1. At the request of Sen. Edward Kennedy, D-Mass., GAO looked at how much FEHBP beneficiaries have to pay for a range of 18 specialty drugs used to treat certain chronic or life-threatening conditions. More than 6.6 million (86 percent) of the nearly 7.8 million enrollees in the plans GAO reviewed are generally subject to co-payments that limit enrollee costs to an average of about $55 for a 30-day supply. However, nearly 900,000 enrollees (11 percent) are subject to co-insurance for more than one of the 18 specialty drugs, which requires the enrollees to pay on average nearly 31 percent of the cost of the drugs. And about 700,000 of those enrollees were in plans that had co-insurance requirements for all 18 of the drugs, GAO said. While enrollees’ co-insurance costs for specialty drugs typically were limited by per-prescription dollar maximums or annual out-of-pocket limits, varying requirements resulted in a wide range of costs for enrollees, depending on the plan. For example, GAO estimated that an enrollee taking the multiple sclerosis drug Betaseron for a year paid $420 if subject to a co-payment, $2,400 if subject to co-insurance with a per-prescription dollar maximum, or $6,000 if subject to co-insurance with an annual out-of-pocket maximum. To see more, go to: www.gao.gov/new.items/d09517r.pdf.

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FMA Urges Senate to Approve FERS Sick Leave Credit Bill

The Federal Managers Association (FMA) on June 3 urged the Senate to approve a bill that would, if signed into law, grant unused sick leave credit for employees retiring under the Federal Employees Retirement System (FERS). The bill, H.R. 1256, the Family Smoking Prevention and Tobacco Control Act, was passed by the House in April and included a provision that would extend to FERS employees the sick leave credit that is currently enjoyed by employees in the Civil Service Retirement System (CSRS). In a recent survey of the federal workforce, 85 percent of CSRS employees said they conserved as much sick leave as possible, while 75 percent of FERS employees said they would use as much sick leave as possible during their last years of service, FMA said. “The cost of sick leave used by federal employees continues to rise, and the loss of productivity becomes more apparent as there is no incentive for FERS employees to conserve sick leave,” said FMA President Darryl Perkinson. “By placing a value on sick leave, FERS employees are encouraged to use their leave responsibly.” Also included in the legislation is a provision allowing FERS employees who leave the federal government the option to redeposit their previously cashed-out annuity if they return to government service. To see more, go to: www.fedmanagers.org.

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