President Nominates New OPM Deputy Director

President Nominates New OPM Deputy Director

On January 4, 2007, the White House announced that President Bush will appoint Howard Weizmann to be the Deputy Director of the U.S. Office of Personnel Management. Mr. Weizmann currently is the President of the Private Sector Council (PSC), a program of the Partnership for Public Service.

Mr. Weizmann’s bio indicates that during the course of his carrier he has been Senior Vice President of the European Business Operations and Senior Vice President of Human Resources at Digex, Inc.; a Managing Consultant at Watson Wyatt Worldwide; Vice President in charge of Aetna Life Insurance Company’s value-added consulting business; a compensation and benefits attorney with Drinker Biddle and Reath; and the Manager of Benefits Planning and in-house attorney for the Sun Oil Company.

Mr. Weizmann’s nomination requires Senate confirmation. He will replace Dan Blair, who has become Chairman of the Postal Regulatory Commission (previously the Postal Rate Commission).

Caremark Merger News

Express Scripts has sent a letter to Caremark stockholders urging them to reject the CVS proposal to acquire CVS, which already has cleared Hart-Scott-Rodino anti-trust review. According to an AP report, “Analysts say Caremark managers prefer the CVS offer while shareholders like the Express Scripts deal better” as it offers a higher premium. In a press release, Tom Ryan, Chairman, President and CEO of CVS replied that “CVS remains resolute in its commitment to seeing our merger through.” Meanwhile, the shareholder lawsuits against the CVS deal wind their way through the courts. This should come to a head soon.

110th Congress Set to Convene

The Democrat Party controlled 110th Congress will convene on Thursday January 4. Sen. Joe Lieberman of Connecticut and Rep. Henry Waxman of California will chair the Senate and House committees with oversight responsibility for the Federal Employees Health Benefits Program. According to Steve Barr’s column in today’s Washington Post, an aide to Sen. Daniel Akaka, who will chair the Senate’s Oversight of Government Management, Federal Workforce, and District of Columbia subcommittee, “plans to review the federal employees health insurance program and how it sets premiums.”

OPM Releases FEDVIP and FSAFEDS Open Season Numbers

OPM announced last week that 690,000 federal employees and annuitants enrolled in the new supplemental dental and vision plans (FEDVIP) during the recent initial Open Season. OPM also reported that FSAFEDS enrollment has grown to 226,000 as a result of the Open Season, which is a 26% increase in employees who have a health care or dependent care flexible spending account.

Steve Barr reports in today’s Washington Post that one of OPM Director Linda Springer’s new objectives is to explore “whether a program could be created to offer short-term disability insurance to federal employees.”

Happy New Year!

Welcome to 2007! There are a few recent Government Accountability Office (GAO) reports that may catch your interest. On December 19, the GAO released a report on prescription drug manufacturer research and development efforts that clearly caught the attention of incoming House Government Reform Chairman Henry Waxman. No doubt, a GAO report on improvements needed in FDA oversight of direct to consumer advertising also will resonate with the incoming Congress. Finally, last Friday, December 29, the GAO released a report on the profitability of the federal government’s long term care insurance program carrier, Long Term Partners LLC.

Tying up loose ends


During the past year, I blogged quite a bit about the generic version of the anti-coagulant drug Plavix battle between Bristol Myers and Apotex. In the latest rounds, the U.S. Court of Appeals for the Federal Circuit on December 8 affirmed the preliminary injunction that the district court awarded Bristol Myers against Apotex’s continued marketing of the generic version in the U.S. The lower court did not require Apotex to withdraw the generics that it had already sold, however, and neither did the appellate court. Earlier this week, a Canadian appellate court rejected an Apotex attempt to sell the generic version in Canada. The U.S. district court now will consider whether Apotex violated Bristol Myers’ patent on Plavix.

I also blogged about the theft of a Veterans Affairs Department laptop computer that held personal data on millions of veterans. That case ended with the recovery of the computer, and the FBI determined that the information had not been abused. On December 21, President Bush signed the Veterans Benefits, Health Care, and Information Technology Act of 2006 , Pub. L. No. 109-461, that tightens up information security at that Department, among other things.

Health Care Related Social Networking

Laura Landro wrote this week in the Wall Street Journal about the extension of the online social networking phenomenon, e.g. My Space, to health care issues, such as diabetes. She notes a dedicated web site called Dailystrength.org. She also notes that the American Cancer Society and the U.S. Centers for Disease Control are using a social networking site call Second Life as a bully pulpit. I had never heard of Second Life until I read this article. Second Life is a site where you can live a second life as an avatar — over 2,000,000 users (not me). Landro reports that “The CDC has held some virtual health fairs on the Second Life Web site where visitors can learn about subjects like pandemic flu resources.” Creative.

Mental Health Parity Law Extension

As part of the Tax Relief and Health Care Act of 2006 (H.R. 6111), which President Bush signed on December 20, Congress extended for another calendar year (2007) the current mental health parity law. This law generally requires group health plans, including FEHB plans, which offer mental health benefits, to place the same annual and lifetime coverage dollar limits on mental health coverage as they do for other medical services. Since 2001, the U.S. Office of Personnel Management has required broader mental health parity for FEHB plan coverage provided that the member uses network doctors and facilities and cooperates with the plan’s medical management requirements. The Washington Post reports that the 110th Congress which takes office next week may enact a more expansive mental health parity law.

HHS website updates

HHS has freshened up its health information technology web site so that it has a look similar to its health care transparency web site. HHS also has added physician fees to its Medicare consumer initiatives web site. As Medicare pays fees to physicians based on a resource based relative value schedule, there is not a lot of variation in the fees for particular services other than regional adjustments. CMS suggests that you may want to use the chart to find a lower priced region to have your colonoscopy procedure (I’m not making this up), thereby reducing the coinsurance.