VA Health Care

Opportunities to Reduce Outpatient Pharmacy Costs Gao ID: T-HEHS-96-162 June 11, 1996

The Department of Veterans Affairs (VA) allows its doctors to prescribe over-the-counter products because concerns have been raised that some veterans may lack the money to buy needed items. VA requires prescriptions as a way to control veterans' access to over-the-counter products in VA pharmacies. In fiscal year 1995, for example, VA pharmacies dispensed analgesics, such as aspirin and acetaminophen, nearly 3 million times. The benefits package that most VA facilities offer for over-the-counter products is more generous than that available from other health plans. VA also provides other features, such as free over-the-counter product mail service and deferred credit for copayments owed, that are not common in other plans. GAO makes several suggestions for reducing the amount of money VA spends to dispense over-the-counter products. First, VA staff could more strictly adhere to statutory eligibility rules. Second, VA could more efficiently dispense over-the-counter products and collect copayments. Third, VA facilities could further reduce the number of over-the-counter products available to veterans on an outpatient basis. Finally, Congress could expand copayment requirements.



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