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HRD-80-89 1 (1980-05-30)

handle is hein.gao/gaobabaqa0001 and id is 1 raw text is: 


                COMPTROLLIER GENERAL OF THE UNITED STATES
  ,                      WASHINGTON. D.C. &0


B-164031(5)

                                              May 30, 1980
The Honorable Gladys Spellman
Chairwoman, Subcommittee on
  Compensation and Employee Benefits
Committee on Post Office and
  Civil Service
House of Representatives

Dear Madam Chairwoman:

     Subject: Office of Personnel Management's        !9L&-
               Comprehensive Medical Plans Network
               Experimen /(HRD-80-89)

     At the request of your office, we have reviewed the
Office of Personnel Management's (OPM's) administration of
the Blue Cross and Blue Shield Comprehensive Medical Plans
Network experiment in the Federal Employees Health Benefits
(FEHB) program. The Network has been operated by the Blue
Cross and Blue Shield Associations (the Associations) since t.YL'J
January 1979. It was intended to provide new options for    CA)6065
health benefits coverage to Federal employees and to relieve
OPM of administrative costs associated with contracting with
a nurber of comprehensive plans. The results of our review
are detailed in enclosure I.

     The Network provides uniform benefits at a uniform
premium rate to over 4,000 Federal employees, annuitants,
and their dependents through 18 comprehensive medical plans.
Based on the results of the experiment, OPM expects to de-
termine if the network concept is a viable alternative for
contracting for the delivery of health care for Federal em-
ployees. A consultant OPM hired to evaluate the Network ex-
periment is expected to issue a final report in June 1980,
after which OPM will decide whether to continue the Network.

     There is no specific reference in the FEHB Act to a
network of comprehensive plans. OPM has not sought spe-
cific legislative guidance for conducting the Network exper-
iment, but has amended its Health Benefits Plans regulations
to provide for admission of comprehensive plan networks into
the FEHB program. OPM's network regulation requires each


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