80_FR_77656 80 FR 77417 - Reasonable Charges for Medical Care or Services; V3.18, 2016 Calendar Year Update and National Average Administrative Prescription Drug Charge Update

80 FR 77417 - Reasonable Charges for Medical Care or Services; V3.18, 2016 Calendar Year Update and National Average Administrative Prescription Drug Charge Update

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 80, Issue 239 (December 14, 2015)

Page Range77417-77418
FR Document2015-31385

This Department of Veterans Affairs (VA) notice updates the data for calculating the ``Reasonable Charges'' collected or recovered by VA for medical care or services. This notice also updates the ``National Average Administrative Costs'' for purposes of calculating VA's charges for prescription drugs that were not administered during treatment but provided or furnished by VA to a veteran.

Federal Register, Volume 80 Issue 239 (Monday, December 14, 2015)
[Federal Register Volume 80, Number 239 (Monday, December 14, 2015)]
[Notices]
[Pages 77417-77418]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31385]



[[Page 77417]]

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DEPARTMENT OF VETERANS AFFAIRS


Reasonable Charges for Medical Care or Services; V3.18, 2016 
Calendar Year Update and National Average Administrative Prescription 
Drug Charge Update

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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

SUMMARY: This Department of Veterans Affairs (VA) notice updates the 
data for calculating the ``Reasonable Charges'' collected or recovered 
by VA for medical care or services. This notice also updates the 
``National Average Administrative Costs'' for purposes of calculating 
VA's charges for prescription drugs that were not administered during 
treatment but provided or furnished by VA to a veteran.

FOR FURTHER INFORMATION CONTACT: Romona Greene, Chief Business Office 
10NB, Veterans Health Administration, Department of Veterans Affairs, 
810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2521. This is 
not a toll free number.

SUPPLEMENTARY INFORMATION: Section 17.101 of 38 Code of Federal 
Regulations sets forth the ``Reasonable Charges'' for medical care or 
services provided or furnished by VA to a veteran: ``For a nonservice-
connected disability for which the veteran is entitled to care (or the 
payment of expenses for care) under a health plan contract; For a 
nonservice-connected disability incurred incident to the veteran's 
employment and covered under a worker's compensation law or plan that 
provides reimbursement or indemnification for such care and services; 
or For a nonservice-connected disability incurred as a result of a 
motor vehicle accident in a state that requires automobile accident 
reparations insurance.'' Section 17.101 provides the methodologies for 
establishing billed amounts for several types of charges; partial 
hospitalization facility charges; outpatient facility charges; 
physician and other professional charges, including professional 
charges for anesthesia services and dental services; pathology and 
laboratory charges; observation care facility charges; ambulance and 
other emergency transportation charges; and charges for durable medical 
equipment, drugs, injectables, and other medical services, items, and 
supplies identified by Healthcare Common Procedure Coding System 
(HCPCS) Level II codes.
    Section 17.101 provides that the actual charge amounts at 
individual VA facilities based on these methodologies and the data 
sources used for calculating those actual charge amounts will either be 
published as a notice in the Federal Register or will be posted on the 
Internet site of the Veterans Health Administration Chief Business 
Office at http://www.va.gov/CBO/apps/rates/index.asp. Certain charges 
are hereby updated as stated in this notice and will be effective on 
January 1, 2016.
    In cases where VA has not established charges for medical care or 
services provided or furnished at VA expense (by either VA or non-VA 
providers) under other provisions or regulations, the method for 
determining VA's charges is set forth at 38 CFR 17.101(a)(8).
    Based on the methodologies set forth in Sec.  17.101, this notice 
provides an update to charges for 2016 HCPCS Level II and Current 
Procedural Terminology (CPT) codes. Charges are also being updated 
based on more recent versions of data sources for the following charge 
types: Partial hospitalization facility charges; outpatient facility 
charges; physician and other professional charges, including 
professional charges for anesthesia services and dental services; 
pathology and laboratory charges; observation care facility charges; 
ambulance and other emergency transportation charges; and charges for 
durable medical equipment, drugs, injectables, and other medical 
services, items, and supplies identified by HCPCS Level II codes. As of 
the date of this notice, the actual charge amounts at individual VA 
facilities based on the methodologies in Sec.  17.101 will be posted at 
http://www.va.gov/CBO/apps/rates/index.asp under the heading 
``Reasonable Charges Data Tables'' and identified as ``V3.18 Data 
Tables (Outpatient and Professional).''
    The list of data sources used for calculating the actual charge 
amounts listed above also will be posted at http://www.va.gov/CBO/apps/rates/index.asp under the heading ``Reasonable Charges Data Sources'' 
and identified as ``Reasonable Charges V3.18 Data Sources (Outpatient 
and Professional) (PDF).''
    Acute inpatient facility charges and skilled nursing facility/sub-
acute inpatient facility charges remain the same as set forth in the 
notice published in the Federal Register on September 21, 2015 (80 FR 
57051). The effective date of those charges is October 1, 2015. The 
data tables containing those actual charges are posted at http://www.va.gov/CBO/apps/rates/index.asp under the heading ``Reasonable 
Charges Data Tables'' and identified as ``V3.17 Data Tables 
(Inpatient).'' The data sources used to calculate these charges are 
posted at http://www.va.gov/CBO/apps/rates/index.asp under the heading 
``Reasonable Charges Data Sources and identified as ``Reasonable 
Charges Data Sources V3.17 (Inpatient) (PDF).
    We are also updating the list of VA medical facility locations. The 
list of VA medical facility locations, including the first three digits 
of their zip codes as well as provider based/non-provider based 
designations, will be posted on the Internet site of the Veterans 
Health Administration Chief Business Office, currently at http://www.va.gov/CBO/apps/rates/index.asp under the heading ``VA Medical 
Facility Locations,'' and identified as ``VA Medical Facility Locations 
V3.18 (Jan16).''
    As indicated in 38 CFR 17.101(m), when VA provides or furnishes 
prescription drugs not administered during treatment, ``charges billed 
separately for such prescription drugs will consist of the amount that 
equals the total of the actual cost to VA for the drugs and the 
national average of VA administrative costs associated with dispensing 
the drugs for each prescription.'' Section 17.101(m) includes the 
methodology for calculating the national average administrative cost 
for prescription drug charges not administered during treatment.
    VA determines the amount of the national average administrative 
cost annually for the prior fiscal year (October through September) and 
then applies the charge at the start of the next calendar year. The 
national average administrative drug cost for calendar year 2016 is 
$14.29. This change will be posted at http://www.va.gov/CBO/payerinfo.asp and identified as ``CY 2016 Average Administrative Cost 
for Prescriptions.''
    Consistent with Sec.  17.101, the national average administrative 
cost, the updated data tables, and supplementary tables containing the 
changes described in this notice will be posted online, as indicated in 
this notice. This notice will be posted at http://www.va.gov/CBO/apps/rates/index.asp under the heading ``Federal Registers, Rules, and 
Notices'' and identified as, ``V3.18 Federal Register Notice 01/01/16 
(Outpatient and Professional), and National Administrative Cost 
(PDF).'' The national average administrative cost, updated data tables, 
and the supplementary tables containing the changes described will be 
effective until changed by a subsequent Federal Register notice.

[[Page 77418]]

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert L. 
Nabors II, Chief of Staff, Department of Veterans Affairs, approved 
this document on November 30, 2015, for publication.

    Dated: December 9, 2015.
William F. Russo,
Director, Office of Regulation Policy & Management, Office of the 
General Counsel, Department of Veterans Affairs.
[FR Doc. 2015-31385 Filed 12-11-15; 8:45 am]
 BILLING CODE 8320-01-P



                                                                             Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Notices                                             77417

                                                  DEPARTMENT OF VETERANS                                  facilities based on these methodologies               used to calculate these charges are
                                                  AFFAIRS                                                 and the data sources used for                         posted at http://www.va.gov/CBO/apps/
                                                                                                          calculating those actual charge amounts               rates/index.asp under the heading
                                                  Reasonable Charges for Medical Care                     will either be published as a notice in               ‘‘Reasonable Charges Data Sources and
                                                  or Services; V3.18, 2016 Calendar Year                  the Federal Register or will be posted                identified as ‘‘Reasonable Charges Data
                                                  Update and National Average                             on the Internet site of the Veterans                  Sources V3.17 (Inpatient) (PDF).
                                                  Administrative Prescription Drug                        Health Administration Chief Business
                                                  Charge Update                                                                                                    We are also updating the list of VA
                                                                                                          Office at http://www.va.gov/CBO/apps/
                                                                                                                                                                medical facility locations. The list of VA
                                                  AGENCY:   Department of Veterans Affairs.               rates/index.asp. Certain charges are
                                                                                                                                                                medical facility locations, including the
                                                                                                          hereby updated as stated in this notice
                                                  ACTION:   Notice.                                       and will be effective on January 1, 2016.             first three digits of their zip codes as
                                                                                                             In cases where VA has not established              well as provider based/non-provider
                                                  SUMMARY:   This Department of Veterans                                                                        based designations, will be posted on
                                                  Affairs (VA) notice updates the data for                charges for medical care or services
                                                                                                          provided or furnished at VA expense                   the Internet site of the Veterans Health
                                                  calculating the ‘‘Reasonable Charges’’
                                                                                                          (by either VA or non-VA providers)                    Administration Chief Business Office,
                                                  collected or recovered by VA for
                                                                                                          under other provisions or regulations,                currently at http://www.va.gov/CBO/
                                                  medical care or services. This notice
                                                                                                          the method for determining VA’s                       apps/rates/index.asp under the heading
                                                  also updates the ‘‘National Average
                                                  Administrative Costs’’ for purposes of                  charges is set forth at 38 CFR                        ‘‘VA Medical Facility Locations,’’ and
                                                  calculating VA’s charges for                            17.101(a)(8).                                         identified as ‘‘VA Medical Facility
                                                  prescription drugs that were not                           Based on the methodologies set forth               Locations V3.18 (Jan16).’’
                                                  administered during treatment but                       in § 17.101, this notice provides an                     As indicated in 38 CFR 17.101(m),
                                                  provided or furnished by VA to a                        update to charges for 2016 HCPCS Level                when VA provides or furnishes
                                                  veteran.                                                II and Current Procedural Terminology                 prescription drugs not administered
                                                                                                          (CPT) codes. Charges are also being                   during treatment, ‘‘charges billed
                                                  FOR FURTHER INFORMATION CONTACT:                        updated based on more recent versions
                                                  Romona Greene, Chief Business Office                                                                          separately for such prescription drugs
                                                                                                          of data sources for the following charge
                                                  10NB, Veterans Health Administration,                                                                         will consist of the amount that equals
                                                                                                          types: Partial hospitalization facility
                                                  Department of Veterans Affairs, 810                                                                           the total of the actual cost to VA for the
                                                                                                          charges; outpatient facility charges;
                                                  Vermont Avenue NW., Washington, DC                                                                            drugs and the national average of VA
                                                                                                          physician and other professional
                                                  20420, (202) 382–2521. This is not a toll               charges, including professional charges               administrative costs associated with
                                                  free number.                                            for anesthesia services and dental                    dispensing the drugs for each
                                                  SUPPLEMENTARY INFORMATION: Section                      services; pathology and laboratory                    prescription.’’ Section 17.101(m)
                                                  17.101 of 38 Code of Federal                            charges; observation care facility                    includes the methodology for
                                                  Regulations sets forth the ‘‘Reasonable                 charges; ambulance and other                          calculating the national average
                                                  Charges’’ for medical care or services                  emergency transportation charges; and                 administrative cost for prescription drug
                                                  provided or furnished by VA to a                        charges for durable medical equipment,                charges not administered during
                                                  veteran: ‘‘For a nonservice-connected                   drugs, injectables, and other medical                 treatment.
                                                  disability for which the veteran is                     services, items, and supplies identified                 VA determines the amount of the
                                                  entitled to care (or the payment of                     by HCPCS Level II codes. As of the date               national average administrative cost
                                                  expenses for care) under a health plan                  of this notice, the actual charge amounts             annually for the prior fiscal year
                                                  contract; For a nonservice-connected                    at individual VA facilities based on the              (October through September) and then
                                                  disability incurred incident to the                     methodologies in § 17.101 will be                     applies the charge at the start of the next
                                                  veteran’s employment and covered                        posted at http://www.va.gov/CBO/apps/                 calendar year. The national average
                                                  under a worker’s compensation law or                    rates/index.asp under the heading                     administrative drug cost for calendar
                                                  plan that provides reimbursement or                     ‘‘Reasonable Charges Data Tables’’ and                year 2016 is $14.29. This change will be
                                                  indemnification for such care and                       identified as ‘‘V3.18 Data Tables                     posted at http://www.va.gov/CBO/payer
                                                  services; or For a nonservice-connected                 (Outpatient and Professional).’’                      info.asp and identified as ‘‘CY 2016
                                                  disability incurred as a result of a motor                 The list of data sources used for                  Average Administrative Cost for
                                                  vehicle accident in a state that requires               calculating the actual charge amounts                 Prescriptions.’’
                                                  automobile accident reparations                         listed above also will be posted at
                                                  insurance.’’ Section 17.101 provides the                http://www.va.gov/CBO/apps/rates/                        Consistent with § 17.101, the national
                                                  methodologies for establishing billed                   index.asp under the heading                           average administrative cost, the updated
                                                  amounts for several types of charges;                   ‘‘Reasonable Charges Data Sources’’ and               data tables, and supplementary tables
                                                  partial hospitalization facility charges;               identified as ‘‘Reasonable Charges V3.18              containing the changes described in this
                                                  outpatient facility charges; physician                  Data Sources (Outpatient and                          notice will be posted online, as
                                                  and other professional charges,                         Professional) (PDF).’’                                indicated in this notice. This notice will
                                                  including professional charges for                         Acute inpatient facility charges and               be posted at http://www.va.gov/CBO/
                                                  anesthesia services and dental services;                skilled nursing facility/sub-acute                    apps/rates/index.asp under the heading
                                                  pathology and laboratory charges;                       inpatient facility charges remain the                 ‘‘Federal Registers, Rules, and Notices’’
                                                  observation care facility charges;                      same as set forth in the notice published             and identified as, ‘‘V3.18 Federal
                                                  ambulance and other emergency                           in the Federal Register on September                  Register Notice 01/01/16 (Outpatient
                                                                                                                                                                and Professional), and National
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                                                  transportation charges; and charges for                 21, 2015 (80 FR 57051). The effective
                                                  durable medical equipment, drugs,                       date of those charges is October 1, 2015.             Administrative Cost (PDF).’’ The
                                                  injectables, and other medical services,                The data tables containing those actual               national average administrative cost,
                                                  items, and supplies identified by                       charges are posted at http://www.va.gov/              updated data tables, and the
                                                  Healthcare Common Procedure Coding                      CBO/apps/rates/index.asp under the                    supplementary tables containing the
                                                  System (HCPCS) Level II codes.                          heading ‘‘Reasonable Charges Data                     changes described will be effective until
                                                     Section 17.101 provides that the                     Tables’’ and identified as ‘‘V3.17 Data               changed by a subsequent Federal
                                                  actual charge amounts at individual VA                  Tables (Inpatient).’’ The data sources                Register notice.


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                                                  77418                      Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Notices

                                                  Signing Authority                                       electronically as an official document of               Dated: December 9, 2015.
                                                                                                          the Department of Veterans Affairs.                   William F. Russo,
                                                    The Secretary of Veterans Affairs, or                 Robert L. Nabors II, Chief of Staff,                  Director, Office of Regulation Policy &
                                                  designee, approved this document and                    Department of Veterans Affairs,                       Management, Office of the General Counsel,
                                                  authorized the undersigned to sign and                                                                        Department of Veterans Affairs.
                                                                                                          approved this document on November
                                                  submit the document to the Office of the                                                                      [FR Doc. 2015–31385 Filed 12–11–15; 8:45 am]
                                                                                                          30, 2015, for publication.
                                                  Federal Register for publication                                                                              BILLING CODE 8320–01–P
mstockstill on DSK4VPTVN1PROD with NOTICES




                                             VerDate Sep<11>2014   17:36 Dec 11, 2015   Jkt 238001   PO 00000   Frm 00105   Fmt 4703   Sfmt 9990   E:\FR\FM\14DEN1.SGM   14DEN1



Document Created: 2015-12-14 13:46:53
Document Modified: 2015-12-14 13:46:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactRomona Greene, Chief Business Office 10NB, Veterans Health Administration, Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2521. This is not a toll free number.
FR Citation80 FR 77417 

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