80_FR_46947 80 FR 46796 - Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)/TRICARE: Refills of Maintenance Medications Through Military Treatment Facility Pharmacies or National Mail Order Pharmacy Program

80 FR 46796 - Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)/TRICARE: Refills of Maintenance Medications Through Military Treatment Facility Pharmacies or National Mail Order Pharmacy Program

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 80, Issue 151 (August 6, 2015)

Page Range46796-46799
FR Document2015-19196

This interim final rule implements Section 702 (c) of the Carl Levin and Howard P. ``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015 which states that beginning October 1, 2015, the pharmacy benefits program shall require eligible covered beneficiaries generally to refill non-generic prescription maintenance medications through military treatment facility pharmacies or the national mail- order pharmacy program. Section 702(c) of the National Defense Authorization Act for Fiscal Year 2015 also terminates the TRICARE For Life Pilot Program on September 30, 2015. The TRICARE For Life Pilot Program described in Section 716 (f) of the National Defense Authorization Act for Fiscal Year 2013, was a pilot program which began in March 2014 requiring TRICARE For Life beneficiaries to refill non- generic prescription maintenance medications through military treatment facility pharmacies or the national mail-order pharmacy program. TRICARE for Life beneficiaries are those enrolled in the Medicare wraparound coverage option of the TRICARE program. This interim rule includes procedures to assist beneficiaries in transferring covered prescriptions to the mail order pharmacy program. This regulation is being issued as an interim final rule in order to comply with the express statutory intent that the program begin October 1, 2015. Public comments, however, are invited and will be considered for possible revisions to this rule for the second year of the program.

Federal Register, Volume 80 Issue 151 (Thursday, August 6, 2015)
[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Rules and Regulations]
[Pages 46796-46799]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19196]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 199

[Docket ID: DOD-2015-HA-0062]
RIN 0720-AB64


Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS)/TRICARE: Refills of Maintenance Medications Through Military 
Treatment Facility Pharmacies or National Mail Order Pharmacy Program

AGENCY: Office of the Secretary, Department of Defense (DoD).

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: This interim final rule implements Section 702 (c) of the Carl 
Levin and Howard P. ``Buck'' McKeon National Defense Authorization Act 
for Fiscal Year 2015 which states that beginning October 1, 2015, the 
pharmacy benefits program shall require eligible covered beneficiaries 
generally to refill non-generic prescription maintenance medications 
through military treatment facility pharmacies or the national mail-
order pharmacy program. Section 702(c) of the National Defense 
Authorization Act for Fiscal Year 2015 also terminates the TRICARE For 
Life Pilot Program on September 30, 2015. The TRICARE For Life Pilot 
Program described in Section 716 (f) of the National Defense 
Authorization Act for Fiscal Year 2013, was a pilot program which began 
in March 2014 requiring TRICARE For Life beneficiaries to refill non-
generic prescription maintenance medications through military treatment 
facility pharmacies or the national mail-order pharmacy program. 
TRICARE for Life beneficiaries are those enrolled in the Medicare 
wraparound coverage option of the TRICARE program. This interim rule 
includes procedures to assist beneficiaries in transferring covered 
prescriptions to the mail order pharmacy program. This regulation is 
being issued as an interim final rule in order to comply with the 
express statutory intent that the program begin October 1, 2015. Public 
comments, however, are invited and will be considered for possible 
revisions to this rule for the second year of the program.

DATES: This rule is effective August 6, 2015. Written comments received 
at the address indicated below by October 5, 2015 will be considered 
and addressed in the final rule.

ADDRESSES: You may submit comments, identified by docket number and/or 
Regulatory Information Number (RIN) number and title, by any of the 
following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Mail: Department of Defense, Office of the Deputy Chief Management 
Officer, Directorate for Oversight and Compliance, Regulatory and Audit 
Matters Office, 9010 Defense Pentagon, Washington, DC 20301-9010.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
Internet at http://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Dr. George Jones, Chief, Pharmacy 
Operations Division, Defense Health Agency, telephone 703-681-2890.

SUPPLEMENTARY INFORMATION:

A. Executive Summary

1. Purpose

    The legal authority for this rule is Section 702 of the National 
Defense Authorization Act for Fiscal Year 2015.
    This interim final rule implements Section 702 (c) of the Carl 
Levin and Howard P. ``Buck'' McKeon National Defense Authorization Act 
for Fiscal Year 2015 which states that beginning October 1, 2015, the 
pharmacy benefits program shall require eligible covered beneficiaries 
generally to refill non-generic prescription maintenance medications 
through military treatment facility pharmacies or the national mail-
order pharmacy program. Eligible covered beneficiaries are defined in 
sections 1072 (5) and 1086 of title 10, United States Code.

2. Summary of the Major Provisions of the Interim Final Rule

    TRICARE beneficiaries are generally required to obtain all 
prescription refills for select non-generic maintenance medications 
from the TRICARE mail order program (where beneficiary copayments are 
much lower than in retail pharmacies) or military treatment facilities 
(where there are no copayments). Covered maintenance medications are 
those prescribed for chronic, long-term conditions that are taken on a 
regular, recurring basis, but do not include medications to treat acute 
conditions. TRICARE will follow best commercial practices, including 
that beneficiaries will be notified of the new rules and mechanisms to 
allow them to receive adequate medication during their transition to 
mail for their refills. The statute and rule authorize a waiver of the 
mail order requirement based on patient needs and other appropriate 
circumstances.

3. Costs and Benefits

    The effect of the statutory requirement, implemented by this rule, 
is to shift a volume of prescriptions from retail pharmacies to the 
mail order pharmacy program. This will produce savings to the 
Department of approximately $88M per year and savings to beneficiaries 
of

[[Page 46797]]

approximately $16.5 million per year in reduced copayments.

B. Background

    In Fiscal Year 2014, 61 million prescriptions were filled for 
TRICARE beneficiaries through the TRICARE retail pharmacy benefit at a 
net cost of $5.1 billion to the government. On average, the government 
pays 32% less for brand name maintenance medication prescriptions 
filled in the mail order program or military treatment facility 
pharmacies than through the retail program. Not all prescriptions 
filled through the retail program are maintenance/chronic medications. 
However, there is potential for significant savings to the government 
by shifting a portion of TRICARE prescription refills to the mail order 
program or military treatment facility pharmacies. In addition, there 
will be significant savings to TRICARE beneficiaries who will receive 
up to a 90 day refill at no charge for generics in the mail order 
program compared to $8 copay for up to a 30 day in retail. The savings 
is even greater for brand-name prescriptions: $16 for up to 90 days in 
mail versus $20 for up to 30 days in retail, meaning that for a 90-day 
supply the copayment comparison is $16 in mail to $60 in retail. The 
non-formulary copayment comparison is $46 for up to 90 days in mail 
compared to $46 for up to 30 days in retail.

C. Provisions of the Interim Final Rule

    The interim final rule revises paragraph (r) to 32 CFR 199.21. 
Paragraph (r) establishes rules for the new program of refills of 
maintenance medications for TRICARE through the mail order pharmacy 
program. Paragraph (r)(1) requires that for covered maintenance 
medications, TRICARE beneficiaries are generally required to obtain 
their prescription refills through the national mail order pharmacy 
program or through military treatment facility pharmacies. TRICARE 
beneficiaries are defined in sections 1072 (5) and 1086 of title 10, 
United States Code, including those enrolled in the Medicare wraparound 
coverage option of the TRICARE program.
    Paragraph (r)(2) provides that the Director, Defense Health Agency 
will establish, maintain, and periodically revise and update a list of 
covered maintenance medications, which will be accessible through the 
TRICARE Pharmacy Program Web site and by telephone through the TRICARE 
Pharmacy Program Service Center. Each medication included on the list 
will be a medication prescribed for a chronic, long-term condition that 
is taken on a regular, recurring basis. It will be clinically 
appropriate and cost effective to dispense the medication from the mail 
order pharmacy. It will be available for an initial filling of a 30-day 
or less supply through retail pharmacies, and will be generally 
available at military treatment facility pharmacies for initial fill 
and refills. It will be available for refill through the national mail-
order pharmacy.
    Paragraph (r)(3) provides that a refill is a subsequent filling of 
an original prescription under the same prescription number or other 
authorization as the original prescription, or a new original 
prescription issued at or near the end date of an earlier prescription 
for the same medication for the same patient.
    Paragraph (r)(4) provides that a waiver of the general requirement 
to obtain maintenance medication prescription refills from the mail 
order pharmacy or military treatment facility pharmacy will be granted 
in several circumstances. There is a blanket waiver for prescription 
medications that are for acute care needs. There is also a blanket 
waiver for prescriptions covered by other health insurance. There is a 
case-by-case waiver to permit prescription maintenance medication 
refills at a retail pharmacy when necessary due to personal need or 
hardship, emergency, or other special circumstance, for example, for 
nursing home residents. This waiver is obtained through an 
administrative override request to the TRICARE pharmacy benefits 
manager under procedures established by the Director, Defense Health 
Agency.
    Paragraph (r)(5) establishes procedures for the effective operation 
of the program. The Department will implement the program by utilizing 
best commercial practices to the extent practicable. An effective 
communication plan that includes efforts to educate beneficiaries in 
order to optimize participation and satisfaction will be implemented. 
Beneficiaries with active prescriptions for a medication on the 
maintenance medication list will be notified that their medication is 
covered under the program. Beneficiaries will be advised that they may 
receive up to two 30 day fills at retail while they transition their 
prescription to the mail order program. The beneficiary will be 
contacted after each of these two fills reminding the beneficiary that 
the prescription must be transferred to mail. Requests for a third fill 
at retail will be blocked and the beneficiary advised to call the 
pharmacy benefits manager (PBM) for assistance. The PBM will provide a 
toll free number to assist beneficiaries in transferring their 
prescriptions from retail to the mail order program. With the 
beneficiary's permission, the PBM will contact the physician or other 
health care provider who prescribed the medication to assist in 
transferring the prescription to the mail order program. In any case in 
which a beneficiary is required to obtain a maintenance medication 
prescription refill from the national mail-order pharmacy program and 
attempts instead to refill such medications at a retail pharmacy, the 
PBM will also maintain the toll free number to assist the beneficiary. 
This assistance may include information on how to request a waiver or 
in taking any other appropriate action to meet the beneficiary's needs 
and to implement the program. The PBM will ensure that a pharmacist is 
available at all times through the toll-free telephone number to answer 
beneficiary questions or provide other appropriate assistance.
    Paragraph (r)(6) provides that the program will remain in effect 
indefinitely with any adjustments or modifications required by law.

D. Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Orders (EOs) 12866 and 13563 require that a comprehensive 
regulatory impact analysis be performed on any economically significant 
regulatory action, defined primarily as one that would result in an 
effect of $100 million or more in any one year. The DoD has examined 
the economic and policy implications of this interim rule and has 
concluded that this is not an economically significant regulatory 
action under the Executive Order. The program rule will produce savings 
to the Department of approximately $88M per year and savings to 
beneficiaries of approximately $16.5 million per year in reduced 
copayments. This rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).

Congressional Review Act, 5 U.S.C. 801, et seq.

    Under the Congressional Review Act, a major rule may not take 
effect until at least 60 days after submission to Congress of a report 
regarding the rule. A major rule is one that would have an annual 
effect on the economy of $100 million or more or have certain other 
impacts. This interim rule is not a major

[[Page 46798]]

rule under the Congressional Review Act.

Section 202, Pub. L. 104-4, ``Unfunded Mandates Reform Act''

    This rule does not contain a Federal mandate that may result in the 
expenditure by State, local and tribunal governments, in aggregate, or 
by the private sector, of $100 million or more (adjusted for inflation) 
in any one year.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    The Regulatory Flexibility Act (RFA) requires that each Federal 
agency prepare and make available for public comment, a regulatory 
flexibility analysis when the agency issues a regulation which would 
have a significant impact on a substantial number of small entities. 
This interim rule does not have a significant impact on a substantial 
number of small entities.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    This interim rule contains no new information collection 
requirements subject to the Paperwork Reduction Act (PRA) of 1995 (44 
U.S.C. 3501-3511).

Executive Order 13132, ``Federalism''

    This interim rule does not have federalism implications, as set 
forth in Executive Order 13132. This rule does not have substantial 
direct effects on the States; the relationship between the National 
Government and the States; or the distribution of power and 
responsibilities among the various levels of Government.

Public Comments Invited

    This rule is being issued as an interim final rule based on the 
statutory requirement of an October 1, 2015 start date. DoD invites 
public comments on all provisions of the rule. They will be considered 
for possible revisions to the program for the second and subsequent 
years of operation.

List of Subjects in 32 CFR Part 199

    Administrative practice and procedure, Claims, Dental health, 
Fraud, Health care, Health insurance, Individuals with disabilities, 
Military personnel.

    Accordingly, 32 CFR part 199 will be amended as follows:

PART 199--[AMENDED]

0
1. The authority citation for part 199 continues to read as follows:

     Authority: 5 U.S.C. 301; 10 U.S.C. chapter 55.


0
2. Section 199.21 is amended by revising paragraph (r), to read as 
follows:


Sec.  199.21  TRICARE Pharmacy Benefits Program.

* * * * *
    (r) Refills of maintenance medications for eligible covered 
beneficiaries through the mail order pharmacy program--(1) In general. 
Consistent with section 702 of the National Defense Authorization Act 
for Fiscal Year 2015, this paragraph requires that for covered 
maintenance medications, beneficiaries are generally required to obtain 
their prescription through the national mail-order pharmacy program or 
through military treatment facility pharmacies. For purposes of this 
paragraph, eligible covered beneficiaries are those defined under 
sections 1072 and 1086 of title 10, United States Code.
    (2) Medications covered. The Director, DHA, will establish, 
maintain, and periodically revise and update a list of covered 
maintenance medications subject to the requirement of paragraph (r)(1) 
of this section. The current list will be accessible through the 
TRICARE Pharmacy Program Internet Web site and by telephone through the 
TRICARE Pharmacy Program Service Center. Each medication included on 
the list will meet the following requirements:
    (i) It will be a medication prescribed for a chronic, long-term 
condition that is taken on a regular, recurring basis.
    (ii) It will be clinically appropriate to dispense the medication 
from the mail order pharmacy.
    (iii) It will be cost effective to dispense the medication from the 
mail order pharmacy.
    (iv) It will be available for an initial filling of a 30-day or 
less supply through retail pharmacies.
    (v) It will be generally available at military treatment facility 
pharmacies for initial fill and refills.
    (vi) It will be available for refill through the national mail-
order pharmacy program.
    (3) Refills covered. For purposes of the program under paragraph 
(r)(1) of this section, a refill is:
    (i) A subsequent filling of an original prescription under the same 
prescription number or other authorization as the original 
prescription; or
    (ii) A new original prescription issued at or near the end date of 
an earlier prescription for the same medication for the same patient.
    (4) Waiver of requirement. A waiver of the general requirement to 
obtain maintenance medication prescription refills from the mail order 
pharmacy or military treatment facility pharmacy will be granted in the 
following circumstances:
    (i) There is a blanket waiver for prescription medications that are 
for acute care needs.
    (ii) There is a blanket waiver for prescriptions covered by other 
health insurance.
    (iii) There is a case-by-case waiver to permit prescription 
maintenance medication refills at a retail pharmacy when necessary due 
to personal need or hardship, emergency, or other special circumstance. 
This waiver is obtained through an administrative override request to 
the TRICARE pharmacy benefits manager under procedures established by 
the Director, DHA.
    (5) Procedures. Under the program established by paragraph (r)(1) 
of this section, the Director, DHA will establish procedures for the 
effective operation of the program. Among these procedures are the 
following:
    (i) The Department will implement the program by utilizing best 
commercial practices to the extent practicable.
    (ii) An effective communication plan that includes efforts to 
educate beneficiaries in order to optimize participation and 
satisfaction will be implemented.
    (iii) Beneficiaries with active retail prescriptions for a 
medication on the maintenance medication list will be notified that 
their medication is included under the program. Beneficiaries will be 
advised that they may receive two 30 day fill at retail while they 
transition their prescription to the mail order program.
    (iv) Requests for a third fill at retail will be blocked and the 
beneficiary advised to call the pharmacy benefits manager (PBM) for 
assistance.
    (v) The PBM will provide a toll free number to assist beneficiaries 
in transferring their prescriptions from retail to the mail order 
program. With the beneficiary's permission, the PBM will contact the 
physician or other health care provider who prescribed the medication 
to assist in transferring the prescription to the mail order program.
    (vi) In any case in which a beneficiary required under this 
paragraph (r) to obtain a maintenance medication prescription refill 
from national mail order pharmacy program and attempts instead to 
refill such medications at a retail pharmacy, the PBM will also 
maintain the toll free number to assist the beneficiary. This 
assistance may include information on how to request a waiver, 
consistent with paragraph (r)(4)(iii) of this section, or in taking any 
other appropriate action to meet the

[[Page 46799]]

beneficiary's needs and to implement the program.
    (vii) The PBM will ensure that a pharmacist is available at all 
times through the toll-free telephone number to answer beneficiary 
questions or provide other appropriate assistance.
    (6) This program will remain in effect indefinitely with any 
adjustments or modifications required by law.

    Dated: July 31, 2015.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2015-19196 Filed 8-5-15; 8:45 am]
 BILLING CODE 5001-06-P



                                                46796             Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Rules and Regulations

                                                guidance information line at (202) 622–                 ACTION:   Interim final rule.                         viewing on the Internet at http://
                                                1559 (not a toll-free number).                                                                                www.regulations.gov as they are
                                                                                                        SUMMARY:    This interim final rule                   received without change, including any
                                                SUPPLEMENTARY INFORMATION:
                                                                                                        implements Section 702 (c) of the Carl                personal identifiers or contact
                                                Background                                              Levin and Howard P. ‘‘Buck’’ McKeon                   information.
                                                                                                        National Defense Authorization Act for
                                                  The temporary regulations (TD 9723)                                                                         FOR FURTHER INFORMATION CONTACT:   Dr.
                                                                                                        Fiscal Year 2015 which states that
                                                that are the subject of this correction are                                                                   George Jones, Chief, Pharmacy
                                                                                                        beginning October 1, 2015, the
                                                under section 432(e)(9) of the Internal                                                                       Operations Division, Defense Health
                                                                                                        pharmacy benefits program shall require
                                                Revenue Code.                                                                                                 Agency, telephone 703–681–2890.
                                                                                                        eligible covered beneficiaries generally
                                                Need for Correction                                     to refill non-generic prescription                    SUPPLEMENTARY INFORMATION:
                                                                                                        maintenance medications through
                                                  As published, the temporary                                                                                 A. Executive Summary
                                                                                                        military treatment facility pharmacies or
                                                regulations (TD 9723) contain errors that
                                                                                                        the national mail-order pharmacy                      1. Purpose
                                                may prove to be misleading and are in
                                                                                                        program. Section 702(c) of the National
                                                need of clarification.                                                                                          The legal authority for this rule is
                                                                                                        Defense Authorization Act for Fiscal
                                                Correction of Publication                               Year 2015 also terminates the TRICARE                 Section 702 of the National Defense
                                                                                                        For Life Pilot Program on September 30,               Authorization Act for Fiscal Year 2015.
                                                ■  Accordingly, the temporary                           2015. The TRICARE For Life Pilot                        This interim final rule implements
                                                regulations (TD 9723), that are subject to              Program described in Section 716 (f) of               Section 702 (c) of the Carl Levin and
                                                FR Doc. 2015–14945, are corrected as                    the National Defense Authorization Act                Howard P. ‘‘Buck’’ McKeon National
                                                follows:                                                for Fiscal Year 2013, was a pilot                     Defense Authorization Act for Fiscal
                                                ■ 1. On page 35207, in the preamble,                    program which began in March 2014                     Year 2015 which states that beginning
                                                third column, third line, under                         requiring TRICARE For Life                            October 1, 2015, the pharmacy benefits
                                                paragraph heading ‘‘Paperwork                           beneficiaries to refill non-generic                   program shall require eligible covered
                                                Reduction Act,’’ the language                           prescription maintenance medications                  beneficiaries generally to refill non-
                                                ‘‘procedure pursuant to the’’ is corrected              through military treatment facility                   generic prescription maintenance
                                                to read ‘‘comment pursuant to the’’.                    pharmacies or the national mail-order                 medications through military treatment
                                                ■ 2. On page 35210, in the preamble,                    pharmacy program. TRICARE for Life                    facility pharmacies or the national mail-
                                                second column, ninth line, under                        beneficiaries are those enrolled in the               order pharmacy program. Eligible
                                                paragraph heading ‘‘Suspension                          Medicare wraparound coverage option                   covered beneficiaries are defined in
                                                Applications,’’ the language ‘‘is eligible              of the TRICARE program. This interim                  sections 1072 (5) and 1086 of title 10,
                                                for the suspensions and has’’ is                        rule includes procedures to assist                    United States Code.
                                                corrected to read ‘‘is eligible for the                 beneficiaries in transferring covered
                                                suspension and has’’.                                                                                         2. Summary of the Major Provisions of
                                                                                                        prescriptions to the mail order
                                                ■ 3. On page 35215, in the preamble,                                                                          the Interim Final Rule
                                                                                                        pharmacy program. This regulation is
                                                third column, third line, under                         being issued as an interim final rule in                TRICARE beneficiaries are generally
                                                paragraph heading ‘‘Contact                             order to comply with the express                      required to obtain all prescription refills
                                                Information,’’ the language ‘‘Department                statutory intent that the program begin               for select non-generic maintenance
                                                of the Treasury at (202)’’ is corrected to              October 1, 2015. Public comments,                     medications from the TRICARE mail
                                                read ‘‘Department of the Treasury                       however, are invited and will be                      order program (where beneficiary
                                                MPRA guidance information line at                       considered for possible revisions to this             copayments are much lower than in
                                                (202)’’.                                                rule for the second year of the program.              retail pharmacies) or military treatment
                                                Martin V. Franks,                                       DATES: This rule is effective August 6,               facilities (where there are no
                                                                                                        2015. Written comments received at the                copayments). Covered maintenance
                                                Chief, Publications and Regulations Branch,
                                                Legal Processing Division, Associate Chief              address indicated below by October 5,                 medications are those prescribed for
                                                Counsel (Procedure and Administration).                 2015 will be considered and addressed                 chronic, long-term conditions that are
                                                [FR Doc. 2015–19366 Filed 8–5–15; 8:45 am]              in the final rule.                                    taken on a regular, recurring basis, but
                                                                                                        ADDRESSES: You may submit comments,                   do not include medications to treat
                                                BILLING CODE 4830–01–P
                                                                                                        identified by docket number and/or                    acute conditions. TRICARE will follow
                                                                                                        Regulatory Information Number (RIN)                   best commercial practices, including
                                                                                                        number and title, by any of the                       that beneficiaries will be notified of the
                                                DEPARTMENT OF DEFENSE                                                                                         new rules and mechanisms to allow
                                                                                                        following methods:
                                                                                                           Federal eRulemaking Portal: http://                them to receive adequate medication
                                                Office of the Secretary
                                                                                                        www.regulations.gov. Follow the                       during their transition to mail for their
                                                                                                        instructions for submitting comments.                 refills. The statute and rule authorize a
                                                32 CFR Part 199
                                                                                                           Mail: Department of Defense, Office of             waiver of the mail order requirement
                                                [Docket ID: DOD–2015–HA–0062]                           the Deputy Chief Management Officer,                  based on patient needs and other
                                                                                                        Directorate for Oversight and                         appropriate circumstances.
                                                RIN 0720–AB64
                                                                                                        Compliance, Regulatory and Audit
                                                                                                                                                              3. Costs and Benefits
                                                Civilian Health and Medical Program of                  Matters Office, 9010 Defense Pentagon,
                                                the Uniformed Services (CHAMPUS)/                       Washington, DC 20301–9010.                               The effect of the statutory
mstockstill on DSK4VPTVN1PROD with RULES




                                                TRICARE: Refills of Maintenance                            Instructions: All submissions received             requirement, implemented by this rule,
                                                Medications Through Military                            must include the agency name and                      is to shift a volume of prescriptions
                                                Treatment Facility Pharmacies or                        docket number or RIN for this Federal                 from retail pharmacies to the mail order
                                                National Mail Order Pharmacy Program                    Register document. The general policy                 pharmacy program. This will produce
                                                                                                        for comments and other submissions                    savings to the Department of
                                                AGENCY:Office of the Secretary,                         from members of the public is to make                 approximately $88M per year and
                                                Department of Defense (DoD).                            these submissions available for public                savings to beneficiaries of


                                           VerDate Sep<11>2014   16:05 Aug 05, 2015   Jkt 235001   PO 00000   Frm 00008   Fmt 4700   Sfmt 4700   E:\FR\FM\06AUR1.SGM   06AUR1


                                                                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Rules and Regulations                                       46797

                                                approximately $16.5 million per year in                 regular, recurring basis. It will be                  prescriptions from retail to the mail
                                                reduced copayments.                                     clinically appropriate and cost effective             order program. With the beneficiary’s
                                                                                                        to dispense the medication from the                   permission, the PBM will contact the
                                                B. Background
                                                                                                        mail order pharmacy. It will be available             physician or other health care provider
                                                  In Fiscal Year 2014, 61 million                       for an initial filling of a 30-day or less            who prescribed the medication to assist
                                                prescriptions were filled for TRICARE                   supply through retail pharmacies, and                 in transferring the prescription to the
                                                beneficiaries through the TRICARE                       will be generally available at military               mail order program. In any case in
                                                retail pharmacy benefit at a net cost of                treatment facility pharmacies for initial             which a beneficiary is required to obtain
                                                $5.1 billion to the government. On                      fill and refills. It will be available for            a maintenance medication prescription
                                                average, the government pays 32% less                   refill through the national mail-order                refill from the national mail-order
                                                for brand name maintenance medication                   pharmacy.                                             pharmacy program and attempts instead
                                                prescriptions filled in the mail order                     Paragraph (r)(3) provides that a refill            to refill such medications at a retail
                                                program or military treatment facility                  is a subsequent filling of an original                pharmacy, the PBM will also maintain
                                                pharmacies than through the retail                      prescription under the same                           the toll free number to assist the
                                                program. Not all prescriptions filled                   prescription number or other                          beneficiary. This assistance may include
                                                through the retail program are                          authorization as the original                         information on how to request a waiver
                                                maintenance/chronic medications.                        prescription, or a new original                       or in taking any other appropriate action
                                                However, there is potential for                         prescription issued at or near the end                to meet the beneficiary’s needs and to
                                                significant savings to the government by                date of an earlier prescription for the               implement the program. The PBM will
                                                shifting a portion of TRICARE                           same medication for the same patient.                 ensure that a pharmacist is available at
                                                prescription refills to the mail order                     Paragraph (r)(4) provides that a waiver            all times through the toll-free telephone
                                                program or military treatment facility                  of the general requirement to obtain                  number to answer beneficiary questions
                                                pharmacies. In addition, there will be                  maintenance medication prescription                   or provide other appropriate assistance.
                                                significant savings to TRICARE                          refills from the mail order pharmacy or
                                                beneficiaries who will receive up to a 90               military treatment facility pharmacy                     Paragraph (r)(6) provides that the
                                                day refill at no charge for generics in the             will be granted in several                            program will remain in effect
                                                mail order program compared to $8                       circumstances. There is a blanket waiver              indefinitely with any adjustments or
                                                copay for up to a 30 day in retail. The                 for prescription medications that are for             modifications required by law.
                                                savings is even greater for brand-name                  acute care needs. There is also a blanket             D. Regulatory Procedures
                                                prescriptions: $16 for up to 90 days in                 waiver for prescriptions covered by
                                                mail versus $20 for up to 30 days in                    other health insurance. There is a case-              Executive Order 12866, ‘‘Regulatory
                                                retail, meaning that for a 90-day supply                by-case waiver to permit prescription                 Planning and Review’’ and Executive
                                                the copayment comparison is $16 in                      maintenance medication refills at a                   Order 13563, ‘‘Improving Regulation
                                                mail to $60 in retail. The non-formulary                retail pharmacy when necessary due to                 and Regulatory Review’’
                                                copayment comparison is $46 for up to                   personal need or hardship, emergency,
                                                                                                                                                                Executive Orders (EOs) 12866 and
                                                90 days in mail compared to $46 for up                  or other special circumstance, for
                                                                                                                                                              13563 require that a comprehensive
                                                to 30 days in retail.                                   example, for nursing home residents.
                                                                                                                                                              regulatory impact analysis be performed
                                                                                                        This waiver is obtained through an
                                                C. Provisions of the Interim Final Rule                                                                       on any economically significant
                                                                                                        administrative override request to the
                                                   The interim final rule revises                                                                             regulatory action, defined primarily as
                                                                                                        TRICARE pharmacy benefits manager
                                                paragraph (r) to 32 CFR 199.21.                                                                               one that would result in an effect of
                                                                                                        under procedures established by the
                                                Paragraph (r) establishes rules for the                                                                       $100 million or more in any one year.
                                                                                                        Director, Defense Health Agency.
                                                new program of refills of maintenance                      Paragraph (r)(5) establishes                       The DoD has examined the economic
                                                medications for TRICARE through the                     procedures for the effective operation of             and policy implications of this interim
                                                mail order pharmacy program.                            the program. The Department will                      rule and has concluded that this is not
                                                Paragraph (r)(1) requires that for covered              implement the program by utilizing best               an economically significant regulatory
                                                maintenance medications, TRICARE                        commercial practices to the extent                    action under the Executive Order. The
                                                beneficiaries are generally required to                 practicable. An effective communication               program rule will produce savings to the
                                                obtain their prescription refills through               plan that includes efforts to educate                 Department of approximately $88M per
                                                the national mail order pharmacy                        beneficiaries in order to optimize                    year and savings to beneficiaries of
                                                program or through military treatment                   participation and satisfaction will be                approximately $16.5 million per year in
                                                facility pharmacies. TRICARE                            implemented. Beneficiaries with active                reduced copayments. This rule has been
                                                beneficiaries are defined in sections                   prescriptions for a medication on the                 designated a ‘‘significant regulatory
                                                1072 (5) and 1086 of title 10, United                   maintenance medication list will be                   action,’’ although not economically
                                                States Code, including those enrolled in                notified that their medication is covered             significant, under section 3(f) of
                                                the Medicare wraparound coverage                        under the program. Beneficiaries will be              Executive Order 12866. Accordingly,
                                                option of the TRICARE program.                          advised that they may receive up to two               the rule has been reviewed by the Office
                                                   Paragraph (r)(2) provides that the                   30 day fills at retail while they                     of Management and Budget (OMB).
                                                Director, Defense Health Agency will                    transition their prescription to the mail             Congressional Review Act, 5 U.S.C. 801,
                                                establish, maintain, and periodically                   order program. The beneficiary will be                et seq.
                                                revise and update a list of covered                     contacted after each of these two fills
                                                maintenance medications, which will be                  reminding the beneficiary that the                      Under the Congressional Review Act,
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                                                accessible through the TRICARE                          prescription must be transferred to mail.             a major rule may not take effect until at
                                                Pharmacy Program Web site and by                        Requests for a third fill at retail will be           least 60 days after submission to
                                                telephone through the TRICARE                           blocked and the beneficiary advised to                Congress of a report regarding the rule.
                                                Pharmacy Program Service Center. Each                   call the pharmacy benefits manager                    A major rule is one that would have an
                                                medication included on the list will be                 (PBM) for assistance. The PBM will                    annual effect on the economy of $100
                                                a medication prescribed for a chronic,                  provide a toll free number to assist                  million or more or have certain other
                                                long-term condition that is taken on a                  beneficiaries in transferring their                   impacts. This interim rule is not a major


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                                                46798             Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Rules and Regulations

                                                rule under the Congressional Review                     ■ 2. Section 199.21 is amended by                     military treatment facility pharmacy
                                                Act.                                                    revising paragraph (r), to read as                    will be granted in the following
                                                                                                        follows:                                              circumstances:
                                                Section 202, Pub. L. 104–4, ‘‘Unfunded                                                                           (i) There is a blanket waiver for
                                                Mandates Reform Act’’                                   § 199.21 TRICARE Pharmacy Benefits                    prescription medications that are for
                                                  This rule does not contain a Federal                  Program.
                                                                                                                                                              acute care needs.
                                                mandate that may result in the                          *       *     *      *     *                             (ii) There is a blanket waiver for
                                                expenditure by State, local and tribunal                   (r) Refills of maintenance medications             prescriptions covered by other health
                                                governments, in aggregate, or by the                    for eligible covered beneficiaries                    insurance.
                                                private sector, of $100 million or more                 through the mail order pharmacy                          (iii) There is a case-by-case waiver to
                                                (adjusted for inflation) in any one year.               program—(1) In general. Consistent                    permit prescription maintenance
                                                                                                        with section 702 of the National Defense              medication refills at a retail pharmacy
                                                Public Law 96–354, ‘‘Regulatory                         Authorization Act for Fiscal Year 2015,               when necessary due to personal need or
                                                Flexibility Act’’ (5 U.S.C. 601)                        this paragraph requires that for covered              hardship, emergency, or other special
                                                  The Regulatory Flexibility Act (RFA)                  maintenance medications, beneficiaries                circumstance. This waiver is obtained
                                                requires that each Federal agency                       are generally required to obtain their                through an administrative override
                                                prepare and make available for public                   prescription through the national mail-               request to the TRICARE pharmacy
                                                comment, a regulatory flexibility                       order pharmacy program or through                     benefits manager under procedures
                                                analysis when the agency issues a                       military treatment facility pharmacies.               established by the Director, DHA.
                                                regulation which would have a                           For purposes of this paragraph, eligible                 (5) Procedures. Under the program
                                                significant impact on a substantial                     covered beneficiaries are those defined               established by paragraph (r)(1) of this
                                                number of small entities. This interim                  under sections 1072 and 1086 of title 10,             section, the Director, DHA will establish
                                                rule does not have a significant impact                 United States Code.                                   procedures for the effective operation of
                                                on a substantial number of small                           (2) Medications covered. The Director,             the program. Among these procedures
                                                entities.                                               DHA, will establish, maintain, and                    are the following:
                                                                                                        periodically revise and update a list of                 (i) The Department will implement
                                                Public Law 96–511, ‘‘Paperwork                          covered maintenance medications                       the program by utilizing best
                                                Reduction Act’’ (44 U.S.C. Chapter 35)                  subject to the requirement of paragraph               commercial practices to the extent
                                                  This interim rule contains no new                     (r)(1) of this section. The current list              practicable.
                                                information collection requirements                     will be accessible through the TRICARE                   (ii) An effective communication plan
                                                subject to the Paperwork Reduction Act                  Pharmacy Program Internet Web site                    that includes efforts to educate
                                                (PRA) of 1995 (44 U.S.C. 3501–3511).                    and by telephone through the TRICARE                  beneficiaries in order to optimize
                                                                                                        Pharmacy Program Service Center. Each                 participation and satisfaction will be
                                                Executive Order 13132, ‘‘Federalism’’                                                                         implemented.
                                                                                                        medication included on the list will
                                                  This interim rule does not have                       meet the following requirements:                         (iii) Beneficiaries with active retail
                                                federalism implications, as set forth in                   (i) It will be a medication prescribed             prescriptions for a medication on the
                                                Executive Order 13132. This rule does                   for a chronic, long-term condition that               maintenance medication list will be
                                                not have substantial direct effects on the              is taken on a regular, recurring basis.               notified that their medication is
                                                States; the relationship between the                       (ii) It will be clinically appropriate to          included under the program.
                                                National Government and the States; or                  dispense the medication from the mail                 Beneficiaries will be advised that they
                                                the distribution of power and                           order pharmacy.                                       may receive two 30 day fill at retail
                                                responsibilities among the various                         (iii) It will be cost effective to                 while they transition their prescription
                                                levels of Government.                                   dispense the medication from the mail                 to the mail order program.
                                                                                                        order pharmacy.                                          (iv) Requests for a third fill at retail
                                                Public Comments Invited                                                                                       will be blocked and the beneficiary
                                                                                                           (iv) It will be available for an initial
                                                   This rule is being issued as an interim              filling of a 30-day or less supply through            advised to call the pharmacy benefits
                                                final rule based on the statutory                       retail pharmacies.                                    manager (PBM) for assistance.
                                                requirement of an October 1, 2015 start                    (v) It will be generally available at                 (v) The PBM will provide a toll free
                                                date. DoD invites public comments on                    military treatment facility pharmacies                number to assist beneficiaries in
                                                all provisions of the rule. They will be                for initial fill and refills.                         transferring their prescriptions from
                                                considered for possible revisions to the                   (vi) It will be available for refill               retail to the mail order program. With
                                                program for the second and subsequent                   through the national mail-order                       the beneficiary’s permission, the PBM
                                                years of operation.                                     pharmacy program.                                     will contact the physician or other
                                                                                                           (3) Refills covered. For purposes of the           health care provider who prescribed the
                                                List of Subjects in 32 CFR Part 199                                                                           medication to assist in transferring the
                                                                                                        program under paragraph (r)(1) of this
                                                  Administrative practice and                           section, a refill is:                                 prescription to the mail order program.
                                                procedure, Claims, Dental health, Fraud,                   (i) A subsequent filling of an original               (vi) In any case in which a beneficiary
                                                Health care, Health insurance,                          prescription under the same                           required under this paragraph (r) to
                                                Individuals with disabilities, Military                 prescription number or other                          obtain a maintenance medication
                                                personnel.                                              authorization as the original                         prescription refill from national mail
                                                  Accordingly, 32 CFR part 199 will be                  prescription; or                                      order pharmacy program and attempts
                                                amended as follows:                                        (ii) A new original prescription issued            instead to refill such medications at a
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                                                                                                        at or near the end date of an earlier                 retail pharmacy, the PBM will also
                                                PART 199—[AMENDED]                                      prescription for the same medication for              maintain the toll free number to assist
                                                                                                        the same patient.                                     the beneficiary. This assistance may
                                                ■ 1. The authority citation for part 199                   (4) Waiver of requirement. A waiver of             include information on how to request
                                                continues to read as follows:                           the general requirement to obtain                     a waiver, consistent with paragraph
                                                  Authority: 5 U.S.C. 301; 10 U.S.C. chapter            maintenance medication prescription                   (r)(4)(iii) of this section, or in taking any
                                                55.                                                     refills from the mail order pharmacy or               other appropriate action to meet the


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                                                                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Rules and Regulations                                          46799

                                                beneficiary’s needs and to implement                    Service (FRS), toll free, at 1–800–877–               assume responsibility for compliance
                                                the program.                                            8339.                                                 with all relevant Federal requirements.
                                                  (vii) The PBM will ensure that a                      SUPPLEMENTARY INFORMATION:                            Accordingly, the final priority
                                                pharmacist is available at all times                      Purpose of Program: The purpose of                  incorporates references to these
                                                through the toll-free telephone number                  the Demonstration and Training                        requirements in the Eligibility and
                                                to answer beneficiary questions or                      Program is to provide competitive grants              Application Requirements sections.
                                                provide other appropriate assistance.                   to, or enter into contracts with, eligible               We also agree that further clarification
                                                  (6) This program will remain in effect                entities to expand and improve                        is needed regarding the circumstances
                                                indefinitely with any adjustments or                    rehabilitation and other services                     in which application by a group would
                                                modifications required by law.                          authorized under the Rehabilitation Act               be appropriate. Thus, we have added a
                                                  Dated: July 31, 2015.                                 of 1973, as amended (Rehabilitation                   requirement that groups must serve a
                                                Patricia L. Toppings,                                   Act), or to further the purposes and                  defined metropolitan area or distinct
                                                OSD Federal Register Liaison Officer,                   policies in sections 2(b) and 2(c) of the             population that exists across State lines.
                                                Department of Defense.                                  Rehabilitation Act by supporting                         Changes: In the Eligible Applicants
                                                [FR Doc. 2015–19196 Filed 8–5–15; 8:45 am]
                                                                                                        activities that increase the provision,               section, we updated the final priority to
                                                                                                        extent, availability, and scope, as well              use the broader term ‘‘group’’ instead of
                                                BILLING CODE 5001–06–P
                                                                                                        as improve the quality of rehabilitation              ‘‘consortium.’’ With regard to the
                                                                                                        services under the Rehabilitation Act.                circumstances for group applications,
                                                                                                          Program Authority: 29 U.S.C. 773(b).                we have updated the Eligible Applicants
                                                DEPARTMENT OF EDUCATION                                                                                       section of the final priority to specify
                                                                                                           Applicable Program Regulations: 34                 that State VR agencies may apply as a
                                                34 CFR Chapter III                                      CFR part 373.                                         group if they serve individuals in a
                                                [Docket ID ED–2015–OSERS–0061]                             We published a notice of proposed
                                                                                                                                                              distinct geographic area shared by two
                                                                                                        priority and definitions for this
                                                                                                                                                              or more adjacent States (e.g.,
                                                Final Priority and Definitions;                         competition in the Federal Register on
                                                                                                                                                              metropolitan areas, targeted
                                                Demonstration and Training Program:                     May 15, 2015 (80 FR 27874). That notice
                                                                                                                                                              occupational clusters or related
                                                Career Pathways for Individuals With                    contained background information and
                                                                                                                                                              industries whose employment base
                                                Disabilities                                            our reasons for proposing the particular
                                                                                                                                                              extends beyond a single adjacent State).
                                                                                                        priority and definitions. There are
                                                AGENCY:  Office of Special Education and                                                                         Also, in the Application
                                                                                                        differences between the proposed
                                                Rehabilitative Services, Department of                                                                        Requirements paragraph (c)(3), we
                                                                                                        priority and the final priority which are
                                                Education.                                                                                                    added a new requirement that State VR
                                                                                                        explained in the Analysis of Comments
                                                ACTION: Final priority and definitions.                                                                       agencies applying as a group identify
                                                                                                        and Changes section of this notice.
                                                                                                           Public Comment: In response to our                 their shared geographic area and
                                                [CFDA Number: 84.235N.]                                 invitation in the notice of proposed                  describe how they will coordinate their
                                                                                                        priority and definitions, two parties                 project activities within that area. In
                                                SUMMARY:   The Assistant Secretary for
                                                                                                        submitted comments relevant to this                   paragraph (e) of the Application
                                                Special Education and Rehabilitative
                                                                                                        priority.                                             Requirements section, we stipulate that
                                                Services announces a priority designed
                                                                                                           Generally, we do not address                       applications by groups must include a
                                                to demonstrate promising practices in
                                                                                                        technical and other minor changes.                    copy of the members’ signed agreement
                                                the use of career pathways to improve
                                                                                                           Analysis of the Comments and                       designating the agency authorized to
                                                employment outcomes for individuals
                                                                                                        Changes: An analysis of the comments                  sign the application on behalf of the
                                                with disabilities. Specifically, this
                                                                                                        and of any changes in the priority and                group; binding each agency to every
                                                priority will establish model
                                                                                                        definitions since publication of the                  statement, assurance and obligation in
                                                demonstration projects that engage State
                                                                                                        notice of proposed priority follows.                  the application; and detailing the
                                                vocational rehabilitation (VR) agencies
                                                                                                           Comment: One commenter inquired                    agencies’ assigned project roles and
                                                in partnerships with other entities to
                                                                                                        whether there were any Federal                        responsibilities.
                                                develop and use career pathways to
                                                help individuals with disabilities                      requirements for the legal or                            Comment: One commenter stated that
                                                eligible for VR services, including youth               programmatic structure of an eligible                 the project requirements in the
                                                with disabilities, acquire necessary                    consortium. We also identified a second               proposed priority would not ensure that
                                                marketable skills and recognized                        issue implicit in the commenter’s                     grantees provide individuals with the
                                                postsecondary credentials. The                          question, namely, when it is appropriate              kind of career development support
                                                Assistant Secretary may use this priority               for VR agencies to apply as a group.                  they need for success in a career
                                                for competitions in fiscal year (FY) 2015                  Discussion: We agree that the                      pathway. The commenter described the
                                                and later years.                                        reference to ‘‘a consortium of State VR               comprehensive career development
                                                                                                        agencies’’ in the Eligible Applicants                 process in terms of three distinct
                                                DATES: This priority and these
                                                                                                        section of the proposed priority requires             elements: the individual’s self-
                                                definitions are effective September 8,                  further definition. The Education                     exploration of career-related skills,
                                                2015.                                                   Department General Administrative                     interests, and values; exploration of
                                                FOR FURTHER INFORMATION CONTACT:                        Regulations (EDGAR) at 34 CFR 75.127–                 potential occupations and career goals
                                                Felipe Lulli, U.S. Department of                        129 authorize eligible entities to apply              aligned with the individual’s skills,
                                                Education, 400 Maryland Avenue SW.,                     as a group. According to EDGAR, groups                interests, and values; and career
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                                                Room 5042, Potomac Center Plaza                         may take various forms, including                     planning and management to achieve
                                                (PCP), Washington, DC 20202–2800.                       consortia, provided that the constituent              the individual’s chosen employment
                                                Telephone: (202) 245–7425 or by email:                  members are eligible entities and that                and personal goals. The commenter
                                                felipe.lulli@ed.gov.                                    the eligible applicants formally bind                 stated that career planning and
                                                   If you use a telecommunications                      themselves to all the application                     management may involve career-
                                                device for the deaf (TDD) or a text                     statements and assurances, describe the               specific skills, job search skills, and soft
                                                telephone (TTY), call the Federal Relay                 activities they plan to conduct, and                  skills involving communication,


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Document Created: 2018-02-23 10:55:53
Document Modified: 2018-02-23 10:55:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThis rule is effective August 6, 2015. Written comments received
ContactDr. George Jones, Chief, Pharmacy Operations Division, Defense Health Agency, telephone 703-681-2890.
FR Citation80 FR 46796 
RIN Number0720-AB64
CFR AssociatedAdministrative Practice and Procedure; Claims; Dental Health; Fraud; Health Care; Health Insurance; Individuals with Disabilities and Military Personnel

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