81_FR_76519 81 FR 76307 - 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

81 FR 76307 - 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 81, Issue 212 (November 2, 2016)

Page Range76307-76311
FR Document2016-26432

This 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. An interim final rule is in effect. 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 rule includes procedures to assist beneficiaries in transferring covered prescriptions to the mail order pharmacy program.

Federal Register, Volume 81 Issue 212 (Wednesday, November 2, 2016)
[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Rules and Regulations]
[Pages 76307-76311]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26432]


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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: Final rule.

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

SUMMARY: This 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. An interim final rule is in effect. 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 rule includes procedures to assist beneficiaries 
in transferring covered prescriptions to the mail order pharmacy 
program.

[[Page 76308]]


DATES: Effective Date: This rule is effective January 6, 2017.

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

SUPPLEMENTARY INFORMATION: 

A. Executive Summary

1. Purpose

    This 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 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 $81 million per year and savings to 
beneficiaries of approximately $20 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 $10 copay for up to a 30 day in retail. The savings 
is even greater for brand-name prescriptions: $20 for up to 90 days in 
mail versus $24 for up to 30 days in retail, meaning that for a 90-day 
supply the copayment comparison is $20 in mail to $72 in retail. The 
non-formulary copayment amount is $49 for up to 90 days in mail non-
formulary drugs are generally not available in retail.

C. Summary of the Final Rule

    The final rule revises paragraph (r) to 32 CFR 199.21. This 
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 non-generic 
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 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

[[Page 76309]]

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. Summary of and Response to Public Comments

    The interim final rule was published in the Federal Register (80 FR 
46796) August 6, 2015, for a 60-day comment period. We received six 
comments on the interim final rule; four comments from individuals and 
two comments from professional associations. We appreciate these 
comments, which are summarized here, along with DoD's response.
    Comment: One comment expressed concern regarding the possibilities 
of delays in the mail causing the patient to miss a day or more of 
their medication.
    Response: The provisions of the TRICARE pharmacy contract permit 
beneficiaries to refill medications well in advance of the refill due 
date to allow for adequate shipping time. Additionally, this final rule 
provides for a case-by-case waiver to permit prescription maintenance 
medication refill at a retail pharmacy when necessary due to personal 
need or hardship, emergency, or special circumstance.
    Comment: One commenter objected to the lack of clear communication 
from ESI by stating that conflicting messages are often given to a 
beneficiary who calls with a question, i.e. your medications has been 
shipped, your medication has not been shipped, etc. The same individual 
suggests that Prior Approvals for brand name products often get deleted 
from the system requiring the beneficiary to repeat the PA process.
    Response: DoD acknowledges the commenter's concerns regarding 
contractor communication and Prior Approvals being deleted from the 
system, both of which are contract specific issues, and not part of the 
regulatory language. It should be noted that Prior Approvals may be 
time limited depending on the medication. DoD will consider the 
feedback for incorporation into future contractor customer service 
performance requirements.
    Comment: One commenter inquired why Active Duty personnel are not 
required to participate in this mandatory program which appears to be 
targeting retirees. In addition, the individual suggested a blanket 
waiver be administered for retirees who live in remote areas with very 
limited MTF pharmacy access. A final concern asked if MTF staffing has 
been increased to accommodate the potential influx of retirees.
    Response: This final rule conforms with the current statutory 
requirement of Section 702 in the fiscal year (FY) 2015 National 
Defense Authorization Act, requiring eligible covered beneficiaries 
generally to refill non-generic prescription maintenance medications 
through military treatment facility pharmacies or the national mail 
order program. Eligible covered beneficiaries are defined in Title 10, 
Section 1072(5) and does not include Active Duty service members. The 
statute and the rule designate military treatment facility (MTF) 
pharmacies or the mail order pharmacy program as the two options 
available to beneficiaries for obtaining refills of non-generic 
prescription maintenance medications. For those beneficiaries who live 
in remote areas with limited MTF access, the mail order pharmacy 
program is an ideal option saving both time and copayment expenses. Our 
experience and data from the TRICARE FOR LIFE maintenance medication 
pilot showed that there was sufficient capacity to accommodate the 
change, both at mail order and in the MTFs. Our data show that the 
overall impact on the MTF workload was very minimal, while majority of 
the prescriptions went to mail order. The movement of brand maintenance 
medications from retail to mail order actually saves beneficiaries out-
of-pocket expenses in the form of reduced copays and up to a 90 day 
supply for less than the 30 day copay at retail. This provides a win-
win scenario for the beneficiary and the government.
    Comment: One commenter cited anecdotal evidence in Alabama that 
resulted in emergency room visits from ingesting mail order 
prescriptions that had been exposed to excessive heat. The commenter 
expressed concerns about proper temperature control of medications 
shipped through the mail and suggests the rule include a requirement 
that all medications must be kept within the FDA's recommended range of 
59-86 degrees.
    Response: The pharmacy contractor reviews all medications dispensed 
through the mail order pharmacy for unique shipping requirements, based 
on information from the manufacturer. For medications that are 
temperature-sensitive, special shipping procedures are followed. The 
temperature-sensitive medications are mailed via expedited overnight 
shipping or 2nd day air, at no cost to the beneficiary. Before certain 
medications are delivered, a scheduling call is made to the beneficiary 
to arrange a delivery time and date.
    Comment: A professional association commented with a number of 
concerns: beneficiaries should continue to have choice, flexibility, 
and easy access to prescription medications; unnecessary waste 
resulting from auto-ship policies and the suggestion to implement 
policies to ensure mail order refills are approved and needed; DoD 
should conduct and publicize a beneficiary satisfaction survey at the 
end of each year; beneficiaries should be properly informed about the 
options to seek a waiver and clear instructions on how to obtain one; 
DoD should develop and make available a complete list of acute care 
meds.
    Response: This final rule conforms with the current statutory 
requirement of Section 702 in the FY 2015 NDAA requiring eligible 
covered beneficiaries generally to refill non-generic prescription 
maintenance medications through military treatment facility pharmacies 
or the national mail order program. DoD believes it is being 
implemented successfully and without adverse effects on beneficiaries. 
Non-generic prescription maintenance medications subject to the program 
are listed at www.health.mil/selectdruglist. DoD has determined it 
unnecessary to have an additional list to specify acute care 
medications that are not subject to the program. DoD continues to 
monitor beneficiary satisfaction of the TRICARE pharmacy program.
    Comment: A professional association commented with the following 
concerns: The rule should clearly indicate that covered maintenance 
medications include non-generic only; beneficiaries should have to 
consent to getting a refill rather than automatic shipping; mandatory 
mail results in a silo approach where the patient gets prescriptions 
from multiple sources resulting the lack of coordinated care; community 
pharmacists are often the sole source for medication and patient 
education and can only judge the patient's understand by in-person 
interactions; communications to beneficiaries regarding waivers should 
include complete information on how to obtain a waiver.
    Response: Section 199.21(r)(1) has been amended to insert ``non-
generic''

[[Page 76310]]

prior to ``covered medications''. Contractor requirements are not part 
of the regulatory language. In order to participate in the mail order 
auto-ship program, beneficiaries must consent to auto-ship enrollment 
but are not required to do so. Beneficiaries enrolled in the auto-ship 
program are notified prior to medication shipment.

E. Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review''

    Executive Order (E.O.) 12866 requires 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 final rule and based on 
the resulting analysis, the Office of Management and Budget has 
concluded that this is an economically significant regulatory action 
under the Executive Order. The program rule will produce savings to the 
Department of approximately $81M per year and savings to beneficiaries 
of approximately $20 million per year in reduced copayments. This rule 
results in a shift of workload from retail pharmacies to the mail order 
program. This workload shift is estimated to result in a net impact to 
retail pharmacy margins nationwide of $15.6 million in FY17 dollars. 
This rule has been designated an economically significant regulatory 
action 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 final rule is not a major rule under the Congressional 
Review Act.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    This rule does not contain a Federal mandate that may result in the 
expenditure by State, local and tribal 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 final 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 final 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 final 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.

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 is 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 non-generic 
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 non-generic 
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

[[Page 76311]]

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 result in 100% 
patient cost shares and will be blocked from any TRICARE payments 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 paragraph 
(r) of this section 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 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: October 28, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-26432 Filed 11-1-16; 8:45 am]
 BILLING CODE 5001-06-P



                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                             76307

                                           Regulatory Flexibility Act, 5 U.S.C. 601,                25 CFR Part 584                                         Authority: 25 U.S.C. 2706, 2710, 2711,
                                           et seq. Indian tribes are not considered                                                                       2712, 2713, 2715, 2717.
                                                                                                      Administrative practice and
                                           to be small entities for purposes of the                 procedure, Gambling.                                  ■ 8. Revise the heading of part 585 to
                                           Regulatory Flexibility Act.                                                                                    read as set forth above.
                                                                                                    25 CFR Part 585                                         Dated: October 17, 2016.
                                           Small Business Regulatory Enforcement
                                           Fairness Act                                               Administrative practice and                         Jonodev O. Chaudhuri,
                                                                                                    procedure, Gambling, Indians—lands,                   Chairman.
                                              This rule is not a major rule under 5                 Penalties.                                            Kathryn Isom-Clause,
                                           U.S.C. 804(2), the Small Business                          For the reasons set forth in the                    Vice Chair.
                                           Regulatory Enforcement Fairness Act.                     preamble, the NIGC amends 25 CFR                      E. Sequoyah Simermeyer,
                                           This rule will not result in an annual                   parts 517, 584, and 585 as follows:
                                                                                                                                                          Associate Commissioner.
                                           effect on the economy of $100 million
                                                                                                    PART 517—FREEDOM OF                                   [FR Doc. 2016–26060 Filed 11–1–16; 8:45 am]
                                           per year or more. This rule will not
                                           cause a major increase in costs or prices                INFORMATION ACT PROCEDURES                            BILLING CODE 7565–01–P

                                           for consumers, individual industries,                    ■ 1. The authority citation for part 517
                                           federal, state, or local government                      continues to read as follows:
                                           agencies, or geographic regions and does                                                                       DEPARTMENT OF DEFENSE
                                           not have a significant adverse effects on                    Authority: 5 U.S.C. 552, as amended.
                                                                                                                                                          Office of the Secretary
                                           competition, employment, investment,                     ■ 2. Revise the first sentence of § 517.2
                                           productivity, innovation, or on the                      to read as follows:                                   32 CFR Part 199
                                           ability of U.S.-based enterprises to
                                           compete with foreign-based enterprises.                  § 517.2   Public reading room.                        [Docket ID: DOD–2015–HA–0062]
                                                                                                      Records that are required to be
                                           Unfunded Mandates Reform Act                                                                                   RIN 0720–AB64
                                                                                                    maintained by the Commission shall be
                                                                                                    available for public inspection and                   Civilian Health and Medical Program of
                                             The Commission, as an independent
                                                                                                    copying at 90 K Street NE., Suite 200,                the Uniformed Services (CHAMPUS)/
                                           regulatory agency, is exempt from                        Washington, DC 20002. * * *
                                           compliance with the Unfunded                                                                                   TRICARE: Refills of Maintenance
                                                                                                    ■ 3. Revise the first two sentences of                Medications Through Military
                                           Mandates Reform Act, 2 U.S.C. 1502(1);
                                           2 U.S.C. 658(1).                                         § 517.4(a) to read as follows:                        Treatment Facility Pharmacies or
                                                                                                    § 517.4   Requirements for making requests.           National Mail Order Pharmacy Program
                                           Takings
                                                                                                      (a) How to make a FOIA request.                     AGENCY:  Office of the Secretary,
                                             In accordance with Executive Order                     Requests for records made pursuant to                 Department of Defense (DoD).
                                           12630, the Commission determined the                     the FOIA must be in writing. Requests                 ACTION: Final rule.
                                           rule does not have significant takings                   should be sent to the National Indian
                                           implications. A takings implication                      Gaming Commission, Attn: FOIA                         SUMMARY:    This final rule implements
                                           assessment is not required.                              Officer, C/O Department of Interior,                  section 702 (c) of the Carl Levin and
                                                                                                    1849 C Street NW., Mailstop #1621,                    Howard P. ‘‘Buck’’ McKeon National
                                           Civil Justice Reform Act                                 Washington, DC 20240. * * *                           Defense Authorization Act for Fiscal
                                                                                                    *     *     *     *     *                             Year 2015 which states that beginning
                                             In accordance with Executive Order
                                                                                                                                                          October 1, 2015, the pharmacy benefits
                                           12988, the Commission determined the                     ■ 4. Revise the last sentence in
                                                                                                                                                          program shall require eligible covered
                                           rule does not unduly burden the judicial                 § 517.8(b)(2) to read as follows:
                                                                                                                                                          beneficiaries generally to refill non-
                                           system and meets the requirements of
                                                                                                    § 517.8   Appeals.                                    generic prescription maintenance
                                           sections 3(a) and 3(b)(2) of the Executive
                                                                                                    *     *     *    *     *                              medications through military treatment
                                           Order.
                                                                                                      (b) * * *                                           facility pharmacies or the national mail-
                                           National Environmental Policy Act                          (2) * * * The appeal shall be                       order pharmacy program. An interim
                                                                                                    addressed to the National Indian                      final rule is in effect. Section 702(c) of
                                             The Commission determined this rule                    Gaming Commission, Attn: FOIA                         the National Defense Authorization Act
                                           does not constitute a major federal                      Appeals Officer, C/O Department of                    for Fiscal Year 2015 also terminates the
                                           action significantly affecting the quality               Interior, 1849 C Street NW., Mailstop                 TRICARE For Life Pilot Program on
                                           of the human environment and that a                      #1621, Washington, DC 20240.                          September 30, 2015. The TRICARE For
                                           detailed statement is not required                                                                             Life Pilot Program described in section
                                                                                                    *     *     *    *     *
                                           pursuant to the National Environmental                                                                         716(f) of the National Defense
                                           Policy Act of 1969, 42 U.S.C. 4321, et                   PART 584—APPEALS BEFORE A                             Authorization Act for Fiscal Year 2013,
                                           seq.                                                     PRESIDING OFFICIAL                                    was a pilot program which began in
                                           Paperwork Reduction Act                                                                                        March 2014 requiring TRICARE For Life
                                                                                                    ■ 5. The authority citation for part 584              beneficiaries to refill non-generic
                                             The rule does not contain any                          continues to read as follows:                         prescription maintenance medications
                                           information collection requirements for                    Authority: 25 U.S.C. 2706, 2710, 2711,              through military treatment facility
                                           which Office of Management and                           2712, 2713, 2715, 2717.                               pharmacies or the national mail-order
                                           Budget approval under the Paperwork                      ■ 6. Revise the heading of part 584 to                pharmacy program. TRICARE for Life
                                           Reduction Act (44 U.S.C. 3501–3520) is                                                                         beneficiaries are those enrolled in the
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                                                                                                    read as set forth above.
                                           required.                                                                                                      Medicare wraparound coverage option
                                                                                                    PART 585—APPEALS TO THE                               of the TRICARE program. This rule
                                           List of Subjects                                                                                               includes procedures to assist
                                                                                                    COMMISSION
                                           25 CFR Part 517                                                                                                beneficiaries in transferring covered
                                                                                                    ■ 7. The authority citation for part 585              prescriptions to the mail order
                                              Freedom of information.                               continues to read as follows:                         pharmacy program.


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                                           76308            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           DATES:  Effective Date: This rule is                     retail pharmacy benefit at a net cost of              treatment facility pharmacies for initial
                                           effective January 6, 2017.                               $5.1 billion to the government. On                    fill and refills. It will be available for
                                           FOR FURTHER INFORMATION CONTACT:   Dr.                   average, the government pays 32% less                 refill through the national mail-order
                                           George Jones, Jr., Chief, Pharmacy                       for brand name maintenance medication                 pharmacy.
                                           Operations Division, Defense Health                      prescriptions filled in the mail order                   Paragraph (r)(3) provides that a refill
                                           Agency, telephone 703–681–2890.                          program or military treatment facility                is a subsequent filling of an original
                                           SUPPLEMENTARY INFORMATION:                               pharmacies than through the retail                    prescription under the same
                                                                                                    program. Not all prescriptions filled                 prescription number or other
                                           A. Executive Summary                                     through the retail program are                        authorization as the original
                                                                                                    maintenance/chronic medications.                      prescription, or a new original
                                           1. Purpose
                                                                                                    However, there is potential for                       prescription issued at or near the end
                                              This final rule implements Section                    significant savings to the government by              date of an earlier prescription for the
                                           702(c) of the Carl Levin and Howard P.                   shifting a portion of TRICARE                         same medication for the same patient.
                                           ‘‘Buck’’ McKeon National Defense                         prescription refills to the mail order                   Paragraph (r)(4) provides that a waiver
                                           Authorization Act for Fiscal Year 2015                   program or military treatment facility                of the general requirement to obtain
                                           which states that beginning October 1,                   pharmacies. In addition, there will be                maintenance medication prescription
                                           2015, the pharmacy benefits program                      significant savings to TRICARE                        refills from the mail order pharmacy or
                                           shall require eligible covered                           beneficiaries who will receive up to a 90             military treatment facility pharmacy
                                           beneficiaries generally to refill non-                   day refill at no charge for generics in the           will be granted in several
                                           generic prescription maintenance                         mail order program compared to $10                    circumstances. There is a case-by-case
                                           medications through military treatment                   copay for up to a 30 day in retail. The               waiver to permit prescription
                                           facility pharmacies or the national mail-                savings is even greater for brand-name                maintenance medication refills at a
                                           order pharmacy program. Eligible                         prescriptions: $20 for up to 90 days in               retail pharmacy when necessary due to
                                           covered beneficiaries are defined in                     mail versus $24 for up to 30 days in                  personal need or hardship, emergency,
                                           sections 1072(5) and 1086 of title 10,                   retail, meaning that for a 90-day supply              or other special circumstance, for
                                           United States Code.                                      the copayment comparison is $20 in                    example, for nursing home residents.
                                                                                                    mail to $72 in retail. The non-formulary              This waiver is obtained through an
                                           2. Summary of the Major Provisions of                                                                          administrative override request to the
                                           the Final Rule                                           copayment amount is $49 for up to 90
                                                                                                    days in mail non-formulary drugs are                  TRICARE pharmacy benefits manager
                                              TRICARE beneficiaries are generally                   generally not available in retail.                    under procedures established by the
                                           required to obtain all prescription refills                                                                    Director, Defense Health Agency.
                                           for select non-generic maintenance                       C. Summary of the Final Rule                             Paragraph (r)(5) establishes
                                           medications from the TRICARE mail                           The final rule revises paragraph (r) to            procedures for the effective operation of
                                           order program (where beneficiary                         32 CFR 199.21. This paragraph (r)                     the program. The Department will
                                           copayments are much lower than in                        establishes rules for the new program of              implement the program by utilizing best
                                           retail pharmacies) or military treatment                 refills of maintenance medications for                commercial practices to the extent
                                           facilities (where there are no                           TRICARE through the mail order                        practicable. An effective communication
                                           copayments). Covered maintenance                         pharmacy program. Paragraph (r)(1)                    plan that includes efforts to educate
                                           medications are those prescribed for                     requires that for covered non-generic                 beneficiaries in order to optimize
                                           chronic, long-term conditions that are                   maintenance medications, TRICARE                      participation and satisfaction will be
                                           taken on a regular, recurring basis, but                 beneficiaries are generally required to               implemented. Beneficiaries with active
                                           do not include medications to treat                      obtain their prescription refills through             prescriptions for a medication on the
                                           acute conditions. TRICARE will follow                    the national mail order pharmacy                      maintenance medication list will be
                                           best commercial practices, including                     program or through military treatment                 notified that their medication is covered
                                           that beneficiaries will be notified of the               facility pharmacies. TRICARE                          under the program. Beneficiaries will be
                                           new rules and mechanisms to allow                        beneficiaries are defined in sections                 advised that they may receive up to two
                                           them to receive adequate medication                      1072(5) and 1086 of title 10, United                  30 day fills at retail while they
                                           during their transition to mail for their                States Code, including those enrolled in              transition their prescription to the mail
                                           refills. The statute and rule authorize a                the Medicare wraparound coverage                      order program. The beneficiary will be
                                           waiver of the mail order requirement                     option of the TRICARE program.                        contacted after each of these two fills
                                           based on patient needs and other                            Paragraph (r)(2) provides that the                 reminding the beneficiary that the
                                           appropriate circumstances.                               Director, Defense Health Agency will                  prescription must be transferred to mail.
                                                                                                    establish, maintain, and periodically                 Requests for a third fill at retail will be
                                           3. Costs and Benefits                                    revise and update a list of covered                   blocked and the beneficiary advised to
                                              The effect of the statutory                           maintenance medications, which will be                call the pharmacy benefits manager
                                           requirement, implemented by this rule,                   accessible through the TRICARE                        (PBM) for assistance. The PBM will
                                           is to shift a volume of prescriptions                    Pharmacy Program Web site and by                      provide a toll free number to assist
                                           from retail pharmacies to the mail order                 telephone through the TRICARE                         beneficiaries in transferring their
                                           pharmacy program. This will produce                      Pharmacy Program Service Center. Each                 prescriptions from retail to the mail
                                           savings to the Department of                             medication included on the list will be               order program. With the beneficiary’s
                                           approximately $81 million per year and                   a medication prescribed for a chronic,                permission, the PBM will contact the
                                           savings to beneficiaries of                              long-term condition that is taken on a                physician or other health care provider
                                           approximately $20 million per year in                    regular, recurring basis. It will be                  who prescribed the medication to assist
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                                           reduced copayments.                                      clinically appropriate and cost effective             in transferring the prescription to the
                                                                                                    to dispense the medication from the                   mail order program. In any case in
                                           B. Background                                            mail order pharmacy. It will be available             which a beneficiary is required to obtain
                                             In Fiscal Year 2014, 61 million                        for an initial filling of a 30-day or less            a maintenance medication prescription
                                           prescriptions were filled for TRICARE                    supply through retail pharmacies, and                 refill from the national mail-order
                                           beneficiaries through the TRICARE                        will be generally available at military               pharmacy program and attempts instead


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                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                       76309

                                           to refill such medications at a retail                   customer service performance                          unique shipping requirements, based on
                                           pharmacy, the PBM will also maintain                     requirements.                                         information from the manufacturer. For
                                           the toll free number to assist the                          Comment: One commenter inquired                    medications that are temperature-
                                           beneficiary. This assistance may include                 why Active Duty personnel are not                     sensitive, special shipping procedures
                                           information on how to request a waiver                   required to participate in this                       are followed. The temperature-sensitive
                                           or in taking any other appropriate action                mandatory program which appears to be                 medications are mailed via expedited
                                           to meet the beneficiary’s needs and to                   targeting retirees. In addition, the                  overnight shipping or 2nd day air, at no
                                           implement the program. The PBM will                      individual suggested a blanket waiver                 cost to the beneficiary. Before certain
                                           ensure that a pharmacist is available at                 be administered for retirees who live in              medications are delivered, a scheduling
                                           all times through the toll-free telephone                remote areas with very limited MTF                    call is made to the beneficiary to arrange
                                           number to answer beneficiary questions                   pharmacy access. A final concern asked                a delivery time and date.
                                           or provide other appropriate assistance.                 if MTF staffing has been increased to                    Comment: A professional association
                                              Paragraph (r)(6) provides that the                    accommodate the potential influx of                   commented with a number of concerns:
                                           program will remain in effect                            retirees.                                             beneficiaries should continue to have
                                           indefinitely with any adjustments or                        Response: This final rule conforms                 choice, flexibility, and easy access to
                                           modifications required by law.                           with the current statutory requirement                prescription medications; unnecessary
                                                                                                    of Section 702 in the fiscal year (FY)                waste resulting from auto-ship policies
                                           D. Summary of and Response to Public                     2015 National Defense Authorization                   and the suggestion to implement
                                           Comments                                                 Act, requiring eligible covered                       policies to ensure mail order refills are
                                              The interim final rule was published                  beneficiaries generally to refill non-                approved and needed; DoD should
                                           in the Federal Register (80 FR 46796)                    generic prescription maintenance                      conduct and publicize a beneficiary
                                           August 6, 2015, for a 60-day comment                     medications through military treatment                satisfaction survey at the end of each
                                           period. We received six comments on                      facility pharmacies or the national mail              year; beneficiaries should be properly
                                           the interim final rule; four comments                    order program. Eligible covered                       informed about the options to seek a
                                           from individuals and two comments                        beneficiaries are defined in Title 10,                waiver and clear instructions on how to
                                           from professional associations. We                       Section 1072(5) and does not include                  obtain one; DoD should develop and
                                           appreciate these comments, which are                     Active Duty service members. The                      make available a complete list of acute
                                           summarized here, along with DoD’s                        statute and the rule designate military               care meds.
                                           response.                                                treatment facility (MTF) pharmacies or                   Response: This final rule conforms
                                                                                                    the mail order pharmacy program as the                with the current statutory requirement
                                              Comment: One comment expressed
                                                                                                    two options available to beneficiaries for            of Section 702 in the FY 2015 NDAA
                                           concern regarding the possibilities of
                                                                                                    obtaining refills of non-generic                      requiring eligible covered beneficiaries
                                           delays in the mail causing the patient to
                                                                                                    prescription maintenance medications.                 generally to refill non-generic
                                           miss a day or more of their medication.
                                                                                                    For those beneficiaries who live in                   prescription maintenance medications
                                              Response: The provisions of the                       remote areas with limited MTF access,                 through military treatment facility
                                           TRICARE pharmacy contract permit                         the mail order pharmacy program is an                 pharmacies or the national mail order
                                           beneficiaries to refill medications well                 ideal option saving both time and                     program. DoD believes it is being
                                           in advance of the refill due date to allow               copayment expenses. Our experience                    implemented successfully and without
                                           for adequate shipping time.                              and data from the TRICARE FOR LIFE                    adverse effects on beneficiaries. Non-
                                           Additionally, this final rule provides for               maintenance medication pilot showed                   generic prescription maintenance
                                           a case-by-case waiver to permit                          that there was sufficient capacity to                 medications subject to the program are
                                           prescription maintenance medication                      accommodate the change, both at mail                  listed at www.health.mil/selectdruglist.
                                           refill at a retail pharmacy when                         order and in the MTFs. Our data show                  DoD has determined it unnecessary to
                                           necessary due to personal need or                        that the overall impact on the MTF                    have an additional list to specify acute
                                           hardship, emergency, or special                          workload was very minimal, while                      care medications that are not subject to
                                           circumstance.                                            majority of the prescriptions went to                 the program. DoD continues to monitor
                                              Comment: One commenter objected to                    mail order. The movement of brand                     beneficiary satisfaction of the TRICARE
                                           the lack of clear communication from                     maintenance medications from retail to                pharmacy program.
                                           ESI by stating that conflicting messages                 mail order actually saves beneficiaries                  Comment: A professional association
                                           are often given to a beneficiary who                     out-of-pocket expenses in the form of                 commented with the following
                                           calls with a question, i.e. your                         reduced copays and up to a 90 day                     concerns: The rule should clearly
                                           medications has been shipped, your                       supply for less than the 30 day copay at              indicate that covered maintenance
                                           medication has not been shipped, etc.                    retail. This provides a win-win scenario              medications include non-generic only;
                                           The same individual suggests that Prior                  for the beneficiary and the government.               beneficiaries should have to consent to
                                           Approvals for brand name products                           Comment: One commenter cited                       getting a refill rather than automatic
                                           often get deleted from the system                        anecdotal evidence in Alabama that                    shipping; mandatory mail results in a
                                           requiring the beneficiary to repeat the                  resulted in emergency room visits from                silo approach where the patient gets
                                           PA process.                                              ingesting mail order prescriptions that               prescriptions from multiple sources
                                              Response: DoD acknowledges the                        had been exposed to excessive heat. The               resulting the lack of coordinated care;
                                           commenter’s concerns regarding                           commenter expressed concerns about                    community pharmacists are often the
                                           contractor communication and Prior                       proper temperature control of                         sole source for medication and patient
                                           Approvals being deleted from the                         medications shipped through the mail                  education and can only judge the
                                           system, both of which are contract                       and suggests the rule include a                       patient’s understand by in-person
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                                           specific issues, and not part of the                     requirement that all medications must                 interactions; communications to
                                           regulatory language. It should be noted                  be kept within the FDA’s recommended                  beneficiaries regarding waivers should
                                           that Prior Approvals may be time                         range of 59–86 degrees.                               include complete information on how to
                                           limited depending on the medication.                        Response: The pharmacy contractor                  obtain a waiver.
                                           DoD will consider the feedback for                       reviews all medications dispensed                        Response: Section 199.21(r)(1) has
                                           incorporation into future contractor                     through the mail order pharmacy for                   been amended to insert ‘‘non-generic’’


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                                           76310            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           prior to ‘‘covered medications’’.                        Public Law 96–354, ‘‘Regulatory                          (2) Medications covered. The Director,
                                           Contractor requirements are not part of                  Flexibility Act’’ (5 U.S.C. 601)                      DHA, will establish, maintain, and
                                           the regulatory language. In order to                       The Regulatory Flexibility Act (RFA)                periodically revise and update a list of
                                           participate in the mail order auto-ship                  requires that each Federal agency                     non-generic covered maintenance
                                           program, beneficiaries must consent to                   prepare and make available for public                 medications subject to the requirement
                                           auto-ship enrollment but are not                         comment, a regulatory flexibility                     of paragraph (r)(1) of this section. The
                                           required to do so. Beneficiaries enrolled                analysis when the agency issues a                     current list will be accessible through
                                           in the auto-ship program are notified                    regulation which would have a                         the TRICARE Pharmacy Program
                                           prior to medication shipment.                            significant impact on a substantial                   Internet Web site and by telephone
                                                                                                    number of small entities. This final rule             through the TRICARE Pharmacy
                                           E. Regulatory Procedures                                 does not have a significant impact on a               Program Service Center. Each
                                                                                                    substantial number of small entities.                 medication included on the list will
                                           Executive Order 12866, ‘‘Regulatory
                                                                                                                                                          meet the following requirements:
                                           Planning and Review’’                                    Public Law 96–511, ‘‘Paperwork                           (i) It will be a medication prescribed
                                                                                                    Reduction Act’’ (44 U.S.C. Chapter 35)                for a chronic, long-term condition that
                                             Executive Order (E.O.) 12866 requires
                                           that a comprehensive regulatory impact                     This final rule contains no new                     is taken on a regular, recurring basis.
                                           analysis be performed on any                             information collection requirements                      (ii) It will be clinically appropriate to
                                                                                                    subject to the Paperwork Reduction Act                dispense the medication from the mail
                                           economically significant regulatory
                                                                                                    (PRA) of 1995 (44 U.S.C. 3501–3511).                  order pharmacy.
                                           action, defined primarily as one that                                                                             (iii) It will be cost effective to
                                           would result in an effect of $100 million                Executive Order 13132, ‘‘Federalism’’                 dispense the medication from the mail
                                           or more in any one year. The DoD has                                                                           order pharmacy.
                                                                                                      This final rule does not have
                                           examined the economic and policy                         federalism implications, as set forth in                 (iv) It will be available for an initial
                                           implications of this final rule and based                Executive Order 13132. This rule does                 filling of a 30-day or less supply through
                                           on the resulting analysis, the Office of                 not have substantial direct effects on the            retail pharmacies.
                                           Management and Budget has concluded                      States; the relationship between the                     (v) It will be generally available at
                                           that this is an economically significant                 National Government and the States; or                military treatment facility pharmacies
                                           regulatory action under the Executive                    the distribution of power and                         for initial fill and refills.
                                           Order. The program rule will produce                     responsibilities among the various                       (vi) It will be available for refill
                                           savings to the Department of                             levels of Government.                                 through the national mail-order
                                           approximately $81M per year and                                                                                pharmacy program.
                                           savings to beneficiaries of                              List of Subjects in 32 CFR Part 199                      (3) Refills covered. For purposes of the
                                           approximately $20 million per year in                      Administrative practice and                         program under paragraph (r)(1) of this
                                           reduced copayments. This rule results                    procedure, Claims, Dental health, Fraud,              section, a refill is:
                                           in a shift of workload from retail                       Health care, Health insurance,                           (i) A subsequent filling of an original
                                           pharmacies to the mail order program.                    Individuals with disabilities, Military               prescription under the same
                                           This workload shift is estimated to                      personnel.                                            prescription number or other
                                           result in a net impact to retail pharmacy                  Accordingly, 32 CFR part 199 is                     authorization as the original
                                           margins nationwide of $15.6 million in                   amended as follows:                                   prescription; or
                                                                                                                                                             (ii) A new original prescription issued
                                           FY17 dollars. This rule has been
                                                                                                    PART 199—[AMENDED]                                    at or near the end date of an earlier
                                           designated an economically significant
                                                                                                                                                          prescription for the same medication for
                                           regulatory action under section 3(f) of                  ■ 1. The authority citation for part 199              the same patient.
                                           Executive Order 12866. Accordingly,                      continues to read as follows:                            (4) Waiver of requirement. A waiver of
                                           the rule has been reviewed by the Office                                                                       the general requirement to obtain
                                                                                                      Authority: 5 U.S.C. 301; 10 U.S.C. chapter
                                           of Management and Budget (OMB).                          55.                                                   maintenance medication prescription
                                           Congressional Review Act, 5 U.S.C. 801,                  ■ 2. Section 199.21 is amended by                     refills from the mail order pharmacy or
                                           et seq.                                                  revising paragraph (r) to read as follows:            military treatment facility pharmacy
                                                                                                                                                          will be granted in the following
                                             Under the Congressional Review Act,                    § 199.21 TRICARE Pharmacy Benefits                    circumstances:
                                           a major rule may not take effect until at                Program.                                                 (i) There is a blanket waiver for
                                           least 60 days after submission to                        *      *      *    *    *                             prescription medications that are for
                                           Congress of a report regarding the rule.                    (r) Refills of maintenance medications             acute care needs.
                                           A major rule is one that would have an                   for eligible covered beneficiaries                       (ii) There is a blanket waiver for
                                           annual effect on the economy of $100                     through the mail order pharmacy                       prescriptions covered by other health
                                           million or more or have certain other                    program—(1) In general Consistent with                insurance.
                                                                                                    section 702 of the National Defense                      (iii) There is a case-by-case waiver to
                                           impacts. This final rule is not a major
                                                                                                    Authorization Act for Fiscal Year 2015,               permit prescription maintenance
                                           rule under the Congressional Review
                                                                                                    this paragraph requires that for non-                 medication refills at a retail pharmacy
                                           Act.
                                                                                                    generic covered maintenance                           when necessary due to personal need or
                                           Section 202, Public Law 104–4,                           medications, beneficiaries are generally              hardship, emergency, or other special
                                           ‘‘Unfunded Mandates Reform Act’’                         required to obtain their prescription                 circumstance. This waiver is obtained
                                                                                                    through the national mail-order                       through an administrative override
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                                             This rule does not contain a Federal                   pharmacy program or through military                  request to the TRICARE pharmacy
                                           mandate that may result in the                           treatment facility pharmacies. For                    benefits manager under procedures
                                           expenditure by State, local and tribal                   purposes of this paragraph, eligible                  established by the Director, DHA.
                                           governments, in aggregate, or by the                     covered beneficiaries are those defined                  (5) Procedures. Under the program
                                           private sector, of $100 million or more                  under sections 1072 and 1086 of title 10,             established by paragraph (r)(1) of this
                                           (adjusted for inflation) in any one year.                United States Code.                                   section, the Director, DHA will establish


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                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                       76311

                                           procedures for the effective operation of                DEPARTMENT OF THE INTERIOR                            pinniger) and Puget Sound-Georgia
                                           the program. Among these procedures                                                                            Basin yelloweye rockfish (Sebastes
                                           are the following:                                       Fish and Wildlife Service                             ruberrimus) were applicable as of
                                              (i) The Department will implement                                                                           February 11, 2015. The critical habitat
                                           the program by utilizing best                            50 CFR Part 17                                        designations for the lower Columbia
                                           commercial practices to the extent                       [Docket No. FWS–HQ–ES–2016–0109;                      River coho salmon (Oncorhynchus
                                           practicable.                                             4500030113]                                           kisutch) and the Puget Sound steelhead
                                              (ii) An effective communication plan                                                                        (Oncorhynchus mykiss) were applicable
                                                                                                    RIN 1018–BB82                                         as of March 25, 2016. The applicable
                                           that includes efforts to educate
                                           beneficiaries in order to optimize                                                                             rule citation for the North Atlantic right
                                                                                                    Endangered and Threatened Wildlife
                                           participation and satisfaction will be                                                                         whale (Eubalaena glacialis) was
                                                                                                    and Plants; Adding Ten Species and
                                           implemented.                                                                                                   applicable as of December 6, 2013.
                                                                                                    Updating Five Species on the List of
                                                                                                    Endangered and Threatened Wildlife                    FOR FURTHER INFORMATION CONTACT:
                                              (iii) Beneficiaries with active retail
                                           prescriptions for a medication on the                                                                          Sarah Quamme, Chief, Unified Listing
                                                                                                    AGENCY:   Fish and Wildlife Service,                  Team, U.S. Fish and Wildlife Service,
                                           maintenance medication list will be
                                                                                                    Interior.                                             MS–ES, 5275 Leesburg Pike, Falls
                                           notified that their medication is
                                           included under the program.                              ACTION: Final rule.                                   Church, VA 22041–3803; 703–358–
                                           Beneficiaries will be advised that they                                                                        1796.
                                                                                                    SUMMARY:   We, the U.S. Fish and
                                           may receive two 30 day fill at retail                                                                          SUPPLEMENTARY INFORMATION:
                                                                                                    Wildlife Service (Service), in
                                           while they transition their prescription                                                                       Background
                                                                                                    accordance with the Endangered
                                           to the mail order program.
                                                                                                    Species Act of 1973, as amended (Act),                   In accordance with the Act (16 U.S.C.
                                              (iv) Requests for a third fill at retail              are amending the List of Endangered
                                           will result in 100% patient cost shares                                                                        1531 et seq.) and Reorganization Plan
                                                                                                    and Threatened Wildlife (List) by                     No. 4 of 1970 (35 FR 15627; October 6,
                                           and will be blocked from any TRICARE                     adding: three foreign coral species
                                           payments and the beneficiary advised to                                                                        1970), NMFS has jurisdiction over the
                                                                                                    (Cantharellus noumeae, Siderastrea                    marine and anadromous taxa specified
                                           call the pharmacy benefits manager                       glynni, and Tubastraea floreana), dusky
                                           (PBM) for assistance.                                                                                          in this rule. Under section 4(a)(1) of the
                                                                                                    sea snake (Aipysurus fuscus), Banggai                 Act, NMFS must decide whether a
                                              (v) The PBM will provide a toll free                  cardinalfish (Pterapogon kauderni), the               species under its jurisdiction should be
                                           number to assist beneficiaries in                        Tanzanian distinct population segment                 classified as endangered or threatened.
                                           transferring their prescriptions from                    (DPS) of African coelacanth (Latimeria                Under section 4(a)(3)(A)(i) of the Act,
                                           retail to the mail order program. With                   chalumnae), Nassau grouper                            NMFS must designate any habitat of
                                           the beneficiary’s permission, the PBM                    (Epinephelus striatus), and three                     endangered or threatened species which
                                           will contact the physician or other                      angelshark species (Squatina aculeata,                is then considered to be critical habitat.
                                           health care provider who prescribed the                  S. oculata, and S. squatina). We are also             NMFS makes these determinations and
                                           medication to assist in transferring the                 updating the entries for Puget Sound-                 critical habitat designations via its
                                           prescription to the mail order program.                  Georgia Basin canary rockfish (Sebastes               rulemaking process. Under section
                                              (vi) In any case in which a beneficiary               pinniger), Puget Sound-Georgia Basin                  4(a)(2) of the Act, we, the Service, are
                                           required under paragraph (r) of this                     yelloweye rockfish (Sebastes                          then responsible for publishing final
                                           section to obtain a maintenance                          ruberrimus), lower Columbia River coho                rules to amend the List in title 50 of the
                                           medication prescription refill from                      salmon (Oncorhynchus kisutch), and the                Code of Federal Regulations (CFR) at 50
                                           national mail order pharmacy program                     Puget Sound steelhead (Oncorhynchus                   CFR 17.11(h).
                                           and attempts instead to refill such                      mykiss) to reflect the designation of                    On December 16, 2014, NMFS
                                           medications at a retail pharmacy, the                    critical habitat, and we are updating the             published a proposed rule (79 FR
                                           PBM will also maintain the toll free                     entry for the North Atlantic right whale              74953) to list the dusky sea snake
                                           number to assist the beneficiary. This                   (Eubalaena glacialis) to reflect an                   (Aipysurus fuscus) and three foreign
                                           assistance may include information on                    applicable rule citation. These                       corals (Cantharellus noumeae,
                                           how to request a waiver, consistent with                 amendments are based on previously                    Siderastrea glynni, and Tubastraea
                                           paragraph (r)(4)(iii) of this section, or in             published determinations by the                       floreana) as endangered species, and the
                                           taking any other appropriate action to                   National Marine Fisheries Service                     Banggai cardinalfish (Pterapogon
                                           meet the beneficiary’s needs and to                      (NMFS) of the National Oceanic and                    kauderni) as a threatened species.
                                           implement the program.                                   Atmospheric Administration,                           NMFS solicited public comments on the
                                              (vii) The PBM will ensure that a                      Department of Commerce, which has                     proposed rule through February 17,
                                           pharmacist is available at all times                     jurisdiction for these species.                       2015. On October 7, 2015, NMFS
                                           through the toll-free telephone number                   DATES: This rule is effective November                published a final rule (80 FR 60560) to
                                           to answer beneficiary questions or                       2, 2016. Applicability date: The three                list the dusky sea snake and the three
                                           provide other appropriate assistance.                    coral and dusky sea snake listings were               foreign coral species as endangered
                                              (6) This program will remain in effect                applicable as of November 6, 2015. The                species. On January 20, 2016, NMFS
                                           indefinitely with any adjustments or                     Banggai cardinalfish listing was                      published a final rule (81 FR 3023) to
                                           modifications required by law.                           applicable as of February 19, 2016. The               list the Banggai cardinalfish as a
                                           *       *    *     *     *                               Tanzanian DPS of African coelacanth                   threatened species.
                                                                                                    listing was applicable as of April 28,                   The listing of the dusky sea snake and
ehiers on DSK5VPTVN1PROD with RULES




                                             Dated: October 28, 2016.                               2016. The Nassau grouper listing was                  three foreign coral species was
                                           Aaron Siegel,                                            applicable as of July 29, 2016. The three             applicable as of November 6, 2015. The
                                           Alternate OSD Federal Register Liaison                   angelshark listings were applicable as of             listing of the Banggai cardinalfish was
                                           Officer, Department of Defense.                          August 31, 2016. The critical habitat                 applicable as of February 19, 2016. In
                                           [FR Doc. 2016–26432 Filed 11–1–16; 8:45 am]              designations for the Puget Sound-                     the final rules for these species (dusky
                                           BILLING CODE 5001–06–P                                   Georgia Basin canary rockfish (Sebastes               sea snake and three corals: 80 FR 60560;


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Document Created: 2016-11-02 01:40:48
Document Modified: 2016-11-02 01:40:48
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
ActionFinal rule.
ContactDr. George Jones, Jr., Chief, Pharmacy Operations Division, Defense Health Agency, telephone 703-681-2890.
FR Citation81 FR 76307 
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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