81 FR 88117 - Extension of Pharmacy Copayments for Medications
DEPARTMENT OF VETERANS AFFAIRS Federal Register Volume 81, Issue 235 (December 7, 2016)
Federal Register Volume 81, Issue 235 (December 7, 2016)
| Page Range | 88117-88120 | |
| FR Document | 2016-29337 |
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)] [Rules and Regulations] [Pages 88117-88120] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29337] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF VETERANS AFFAIRS 38 CFR Part 17 RIN 2900-AP87 Extension of Pharmacy Copayments for Medications AGENCY: Department of Veterans Affairs. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Veterans Affairs (VA) amends its medical regulations concerning the copayment required for certain medications. This rulemaking freezes copayments at the current rate for veterans in priority groups 2 through 8 through February 26, 2017. DATES: Effective Date: This rule is effective on December 7, 2016. Comment date: Comments must be received on or before February 6, 2017. ADDRESSES: Written comments may be submitted by email through http://www.regulations.gov; by mail or hand-delivery to Director, Regulation Policy and Management (00REG), Department of Veterans Affairs, 810 Vermont Avenue NW., Room 1068, Washington, DC 20420; or by fax to (202) 273-9026. (This is not a toll-free number.) Comments should indicate that they are submitted in response to ``RIN 2900-AP87-Copayments for Medications in [[Page 88118]] 2017.'' Copies of comments received will be available for public inspection in the Office of Regulation Policy and Management, Room 1068, between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday (except holidays). Please call (202) 461-4902 for an appointment. (This is not a toll-free number.) In addition, during the comment period, comments may be viewed online through the Federal Docket Management System (FDMS) at http://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Bridget Souza, Office of Community Care (10D), Veterans Health Administration, Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2537. (This is not a toll-free number.) SUPPLEMENTARY INFORMATION: Under 38 U.S.C. 1722A(a), VA must require veterans to pay at least a $2 copayment for each 30-day supply of medication furnished on an outpatient basis for the treatment of a non- service-connected disability or condition unless a veteran has a service-connected disability rated 50 percent or more, is a former prisoner of war, or has an annual income at or below the maximum annual rate of VA pension that would be payable if the veteran were eligible for pension. Under 38 U.S.C. 1722A(b), VA ``may,'' by regulation, increase that copayment amount and establish a maximum annual copayment amount (a ``cap''). We have consistently interpreted section 1722A(b) to mean that VA has discretion to determine the appropriate copayment amount and annual cap amount for medication furnished on an outpatient basis for covered treatment, provided that any decision by VA to increase the copayment amount or annual cap amount is the subject of a rulemaking proceeding. We have implemented this statute in 38 CFR 17.110. Under 38 CFR 17.110(b)(1), veterans are obligated to pay VA a copayment for each 30-day or less supply of medication provided by VA on an outpatient basis (other than medication administered during treatment). Under the current regulation, the copayment amount for veterans in priority groups 2 through 6 of VA's health care system is $8 through December 31, 2016. 38 CFR 17.110(b)(1)(i). The copayment amount for veterans in priority groups 7 and 8 is $9 through December 31, 2016. 38 CFR 17.110(b)(1)(ii). Thereafter, the copayment amount for all affected veterans is to be established using a formula based on the prescription drug component of the Medical Consumer Price Index (CPI- P), set forth in 38 CFR 17.110(b)(1)(iii). Using this methodology would generally result in increased medication prices for veterans. Currently Sec. 17.110(b)(2) also includes a ``cap'' on the total amount of copayments in a calendar year for a veteran enrolled in one of VA's health care enrollment system priority groups 2 through 6. Through December 31, 2016, the annual cap is set at $960. Thereafter, the cap is to increase ``by $120 for each $1 increase in the copayment amount'' applicable to veterans in priority categories 2 through 6. On October 27, 2014, we published an interim final rulemaking that ``froze'' copayments for veterans in priority categories 2 through 6 at $8 and for veterans in priority groups 7 and 8 at $9, through December 31, 2015. 79 FR 63819. This interim final rule was made final on September 16, 2015. 79 FR 55545. In that final rulemaking, we extended the copayment freeze to be effective through December 31, 2016. We stated that this extended timeframe would permit the freeze to be in effect all of calendar year 2016 for the continued benefit of veterans, and would allow VA to continue to develop and publish proposed and final rules to implement a tiered copayment structure for certain medications, which will further align VA's medication copayment structure with other Federal agencies and the commercial sector. In these rulemakings, we stated that this freeze was appropriate because failure to take the action would result in higher copayments, and, as described in prior rulemakings, higher copayments reduced the utilization of VA pharmacy benefits and caused VA patients to instead rely on external providers for medications. 79 FR 63820. We continue to believe this to be the case. The ability to ensure that medications are taken as prescribed is essential to effective health care management. VA can monitor whether its patients are refilling prescriptions at regular intervals while also checking for medications that may interact with each other when these prescriptions are filled by VA. When both VA and non-VA providers are issuing prescriptions to a veteran, there is a greater risk of adverse interactions and harm to the patient because it is more difficult for each provider to assess whether the patient is taking any other medications. On January 5, 2016, we published a proposed rule that would establish a tiered medication copayment structure. 81 FR 196. In that proposed rule, we indicated that VA intended to publish a final rule that would make the proposed changes effective January 1, 2017. VA proposed an effective date of January 1, 2017 based on our assumption that the necessary system changes would be in place by that date to allow us to publish a final rule implementing a tiered medication copayment structure. VA will be unable to meet that timeline. However, VA thinks that the necessary changes will be in place in February 2017, and that a final rule establishing a tiered medication copayment regime can be published with an effective date of February 27, 2017. In this rulemaking, we are removing December 31, 2016, in each place it appears in paragraphs (b)(1)(i)-(iii) and (b)(2), and inserting February 26, 2017, to continue to keep copayment rates and caps at their current levels until the tiered copayment system is established. If we fail to extend the medication copayment freeze past December 31, 2016, affected veterans would be subject to increased medication copayments until such time as the anticipated final rule implementing the tiered medication copayment structure is effective. In that case, beginning January 1, 2017, VA would use the CPI-P methodology in Sec. 17.110(b)(1)(iii) to determine whether to increase copayments and calculate any mandated increase in the copayment amount for veterans in priority groups 2 through 8. At that time, the copayment amounts would be adjusted to a higher rate based on changes in the CPI-P over the past five years, and the annual copayment cap would also be raised by $120 for each $1 increase in the copayment amount. The end result would be increased medication copayments, and a higher annual cap on copayments until the effective date of the anticipated final rule implementing tiered medication copayments. VA believes this would not only have an adverse financial effect on veterans subject to medication copayments, but would also cause unnecessary confusion by making two changes to veterans' medication copayment amounts over a two-month period. Thus, the intended effect of this interim final rule is to prevent increases in copayment amounts and the copayment cap for veterans in priority groups 2 through 8 until VA has published a final rule establishing a new copayment structure. At that time, veterans' copayments will be determined according to the methodology contained in the final rule that VA will publish to establish a tiered copayment system. If VA has not established a new tiered copayment system by the end of February, copayments and the copayment cap will increase as prescribed in current [[Page 88119]] Sec. 17.110(b) in the absence of further rulemaking. Administrative Procedure Act The Secretary of Veterans Affairs finds that there is good cause under 5 U.S.C. 553(b)(B) and (d)(3) to dispense with the opportunity for advance notice and opportunity for public comment and good cause to publish this rule with an immediate effective date. As stated above, this rule freezes at current rates the prescription drug copayment that VA charges certain veterans. The Secretary finds that it is impracticable and contrary to the public interest to delay this rule for the purpose of soliciting advance public comment or to have a delayed effective date. If the medication copayment freeze is not extended, on January 1, 2017, affected veterans would be subject to increased medication copayments based on changes to the CPI-P since 2010, as well as an upward adjustment to the annual copayment cap. VA believes that this might cause a significant financial hardship for those affected veterans and may decrease patient adherence to medical plans and have other unpredictable negative health effects. Further, VA believes that failing to extend the current medication copayment freeze, without interruption, would likely result in confusion for the public and affected veterans because the new tiered medication copayment regime will go into effect within a relatively short period of time. Lastly, allowing the current medication copayment freeze to expire on December 31, 2016, would create programmatic issues that would be difficult for VA to administratively manage. Within a 60-day period IT algorithms that are currently in place would have to be removed, new copayment amounts and annual cap amounts would have to be calculated and implemented along with the necessary system changes, followed by application of the new IT changes necessary for establishing a new tiered medication copayment scheme. For the above reasons, the Secretary issues this rule as an interim final rule. VA will consider and address comments that are received within 60 days of the date this interim final rule is published in the Federal Register. Effect of Rulemaking Title 38 of the Code of Federal Regulations, as revised by this interim final rulemaking, represents VA's implementation of its legal authority on this subject. Other than future amendments to this regulation or governing statutes, no contrary guidance or procedures are authorized. All existing or subsequent VA guidance must be read to conform with this rulemaking if possible or, if not possible, such guidance is superseded by this rulemaking. Paperwork Reduction Act This interim final rule contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521). Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, and other advantages; distributive impacts; and equity). Executive Order 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 12866 (Regulatory Planning and Review) defines a ``significant regulatory action,'' requiring review by the Office of Management and Budget (OMB), unless OMB waives such review, as ``any regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) Raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in this Executive Order.'' The economic, interagency, budgetary, legal, and policy implications of this interim final rule have been examined, and it has been determined not to be a significant regulatory action under Executive Order 12866. VA's impact analysis can be found as a supporting document at http://www.regulations.gov, usually within 48 hours after the rulemaking document is published. Additionally, a copy of the rulemaking and its impact analysis are available on VA's Web site. Unfunded Mandates The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. This interim final rule will have no such effect on State, local, and tribal governments, or on the private sector. Regulatory Flexibility Act The Secretary hereby certifies that this interim final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. This interim final rule will temporarily freeze the copayments that certain veterans are required to pay for prescription drugs furnished by VA. This interim rule directly affects individual VA patients and will not directly affect small entities. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from the initial and final regulatory flexibility analysis requirements of 5 U.S.C. 603 and 604. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance numbers and titles for the programs affected by this document are as follows: 64.005, Grants to States for Construction of State Home Facilities; 64.007, Blind Rehabilitation Centers; 64.008, Veterans Domiciliary Care; 64.009, Veterans Medical Care Benefits; 64.010, Veterans Nursing Home Care; 64.011, Veterans Dental Care; 64.012, Veterans Prescription Service; 64.013, Veterans Prosthetic Appliances; 64.014, Veterans State Domiciliary Care; 64.015, Veterans State Nursing Home Care; 64.016, Veterans State Hospital Care; 64.018, Sharing Specialized Medical Resources; 64.019, Veterans Rehabilitation Alcohol and Drug Dependence; 64.022, Veterans Home Based Primary Care; and 64.024, VA Homeless Providers Grant and Per Diem Program. Signing Authority The Secretary of Veterans Affairs, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Gina S. Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, [[Page 88120]] approved this document on October 3, 2016, for publication. Dated: December 2, 2016. Michael Shores, Acting Director, Regulation Policy & Management, Office of the Secretary, Department of Veterans Affairs. List of Subjects in 38 CFR Part 17 Administrative practice and procedure, Alcohol abuse, Alcoholism, Claims, Day care, Dental health, Drug abuse, Foreign relations, Government contracts, Grant programs--health, Grant programs--veterans, Health care, Health facilities, Health professions, Health records, Homeless, Medical and dental schools, Medical devices, Medical research, Mental health programs, Nursing homes, Philippines, Reporting and recordkeeping requirements, Scholarships and fellowships, Travel and transportation expenses, Veterans. For the reasons set out in the preamble, VA amends 38 CFR part 17 as follows: PART 17--MEDICAL 0 1. The authority citation for part 17 continues to read as follows: Authority: 38 U.S.C. 501, and as noted in specific sections. Sections 17.640 and 17.647 also issued under Public Law 114-2, sec. 4. Sections 17.641 through 17.646 also issued under 38 U.S.C. 501(a) and Public Law 114-2, sec. 4. Sec. 17.110 [Amended] 0 2. Amend Sec. 17.110 as follows: 0 a. In paragraphs (b)(1)(i), (ii), and (iii), remove all references to ``December 31, 2016'' and add in each place ``February 26, 2017''. 0 b. In paragraph (b)(2), remove all references to ``December 31, 2016'' and add in each place ``February 26, 2017''. [FR Doc. 2016-29337 Filed 12-6-16; 8:45 am] BILLING CODE 8320-01-P
![Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Rules and Regulations 88117
Consultation and Coordination with For the reasons discussed in the security zone. If permission is granted,
Indian Tribal Governments, because it preamble, the Coast Guard amends 33 all persons and vessels must comply
does not have a substantial direct effect CFR part 165 as follows: with the instructions of the COTP
on one or more Indian tribes, on the Honolulu or his designated
relationship between the Federal PART 165—REGULATED NAVIGATION representative and proceed at the
Government and Indian tribes, or on the AREAS AND LIMITED ACCESS AREAS minimum speed necessary to maintain a
distribution of power and safe course while in the security zone.
responsibilities between the Federal ■ 1. The authority citation for part 165 (4) The U.S. Coast Guard may be
Government and Indian tribes. If you continues to read as follows: assisted in the patrol and enforcement
believe this rule has implications for Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. of the security zone by Federal, State,
federalism or Indian tribes, please Chapter 701; 50 U.S.C. 191, 195; 33 CFR and local agencies.
contact the person listed in the FOR 1.05–1, 6.04–1, 6.04–6, and 160.5; Pub. L. (d) Notice of enforcement. The COTP
107–295, 116 Stat. 2064; Department of Honolulu will provide notice of
FURTHER INFORMATION CONTACT section
Homeland Security Delegation No. 0170.1
above. enforcement of the security zone
■ 2. Add § 165.T14–1030 to read as described in this section by verbal radio
E. Unfunded Mandates Reform Act follows: broadcasts, written notice to mariners,
The Unfunded Mandates Reform Act and general public outreach.
of 1995 (2 U.S.C. 1531–1538) requires § 165.T14–1030 Security Zone; Kailua Bay,
(e) Definitions. As used in this
Oahu, HI.
Federal agencies to assess the effects of section, designated representative
their discretionary regulatory actions. In (a) Location. The security zone area is means any Coast Guard commissioned,
particular, the Act addresses actions located within the COTP Zone (See 33 warrant, or petty officer who has been
that may result in the expenditure by a CFR 3.70–10) and encompasses two authorized by the COTP to assist in
State, local, or tribal government, in the primary areas from the surface of the enforcing the security zone described in
aggregate, or by the private sector of water to the ocean floor: The navigable paragraph (a) of this section.
$100,000,000 (adjusted for inflation) or waters of the Kawainui Canal, beginning
at the North Kalaheo Avenue Road Dated: December 1, 2016.
more in any one year. Though this rule M.C. Long,
will not result in such an expenditure, Bridge and continuing northeast into
Kailua Bay; and the navigable waters of Captain, U.S. Coast Guard, Captain of the
we do discuss the effects of this rule Port, Honolulu.
elsewhere in this preamble. Kailua Bay beginning at Kapoho Point
and extending in a southwesterly [FR Doc. 2016–29317 Filed 12–6–16; 8:45 am]
F. Environment direction to the shore boundary of a BILLING CODE 9110–04–P
We have analyzed this rule under the property located at 123 Kailuana Loop,
Department of Homeland Security Kailua, HI 96734. The geographic
Management Directive 023–01 and coordinates of the zone include the DEPARTMENT OF VETERANS
Commandant Instruction M16475.lD, navigable waters of the Kawainui Canal AFFAIRS
which guide the Coast Guard in beginning at a point 21°24′56″ N.,
complying with the National 157°44′58″ W., then extending to 38 CFR Part 17
Environmental Policy Act of 1969 (42 21°25′27″ N., 157°44′21″ W. (Kapoho RIN 2900–AP87
U.S.C. 4321–4370f), and have Point) including all the waters to the
determined that this action is one of a west of a straight line to 21°25′11″ N., Extension of Pharmacy Copayments
category of actions that do not 157°44′39″ W., and extending back to for Medications
individually or cumulatively have a the original point 21°24′56″ N.,
157°44′58″ W. AGENCY: Department of Veterans Affairs.
significant effect on the human
environment. It is categorically (b) Effective period. This rule is ACTION: Interim final rule.
excluded from further review under effective from-8 a.m. (HST) on December
14, 2016, through 8 a.m. (HST) on SUMMARY: The Department of Veterans
paragraph 34(g) of Figure 2–1 of the Affairs (VA) amends its medical
Commandant Instruction. An January 4, 2017.
(c) Regulations. The general regulations concerning the copayment
environmental analysis checklist required for certain medications. This
supporting this determination and a regulations governing security zones
contained in 33 CFR 165.33 apply to the rulemaking freezes copayments at the
Categorical Exclusion Determination are current rate for veterans in priority
available in the docket where indicated security zone created by this temporary
final rule. groups 2 through 8 through February 26,
under ADDRESSES. 2017.
(1) All persons and vessels are
G. Protest Activities required to comply with the general DATES: Effective Date: This rule is
The Coast Guard respects the First regulations governing security zones effective on December 7, 2016.
Amendment rights of protesters. found in 33 CFR part 165. Comment date: Comments must be
Protesters are asked to contact the (2) Entry into or remaining in this received on or before February 6, 2017.
person listed in the FOR FURTHER security zone is prohibited unless ADDRESSES: Written comments may be
INFORMATION CONTACT section to authorized by the COTP Honolulu or his submitted by email through http://
coordinate protest activities so that your designated representative. www.regulations.gov; by mail or hand-
message can be received without (3) Persons or vessels desiring to delivery to Director, Regulation Policy
asabaliauskas on DSK3SPTVN1PROD with RULES
jeopardizing the safety or security of transit the security zone identified in and Management (00REG), Department
people, places or vessels. paragraph (a) of this section may contact of Veterans Affairs, 810 Vermont
the COTP of Honolulu through his Avenue NW., Room 1068, Washington,
List of Subjects in 33 CFR Part 165 designated representatives at the DC 20420; or by fax to (202) 273–9026.
Harbors, Marine safety, Navigation Command Center via telephone: (808) (This is not a toll-free number.)
(water), Reporting and recordkeeping 842–2600 and (808) 842–2601; fax: (808) Comments should indicate that they are
requirements, Security measures, and 842–2642; or on VHF channel 16 (156.8 submitted in response to ‘‘RIN 2900–
Waterways. Mhz) to request permission to transit the AP87-Copayments for Medications in
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![88120 Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Rules and Regulations
approved this document on October 3, to the proposed rules, one rule was requested a review of competitive
2016, for publication. revised to alleviate confusion and products’ share of institutional costs.3
Dated: December 2, 2016. another revision was administrative in The instant rulemaking stems from
nature. the Commission’s findings in Order No.
Michael Shores,
DATES: Effective January 6, 2017.
3506 on Proposal One. In that order, the
Acting Director, Regulation Policy & Commission found that a portion of
Management, Office of the Secretary, FOR FURTHER INFORMATION CONTACT:
Department of Veterans Affairs.
inframarginal costs (those inframarginal
David A. Trissell, General Counsel, at costs calculated as part of a product’s
List of Subjects in 38 CFR Part 17 202–789–6820. incremental cost) have a reliably
SUPPLEMENTARY INFORMATION: identifiable causal relationship to
Administrative practice and
procedure, Alcohol abuse, Alcoholism, Regulatory History products. Order No. 3506 at 61.
Claims, Day care, Dental health, Drug Therefore, pursuant to Order No. 3506,
81 FR 63448 (Sept. 15, 2016).
abuse, Foreign relations, Government attributable costs must also include
contracts, Grant programs—health, Table of Contents those inframarginal costs calculated as
Grant programs—veterans, Health care, I. Introduction
part of a competitive product’s
Health facilities, Health professions, II. Background incremental costs (in addition to a
Health records, Homeless, Medical and III. Review and Analysis of Comments product’s volume-variable costs and
dental schools, Medical devices, IV. Changes to Proposed Rules product-specific fixed costs).4
Medical research, Mental health V. Ordering Paragraphs As noted above, on October 19, 2016,
programs, Nursing homes, Philippines, the Commission issued the Errata to
I. Introduction clarify the definition of inframarginal
Reporting and recordkeeping
requirements, Scholarships and On September 9, 2016, the costs described in Order No. 3506. See
fellowships, Travel and transportation Commission issued proposed rules Errata. Generally, when defining
expenses, Veterans. consisting of necessary changes, inframarginal costs, the Errata replaced
resulting from Order No. 3506, that the phrase ‘‘do not vary directly with
For the reasons set out in the specifically define or describe volume,’’ with the phrase ‘‘are not
preamble, VA amends 38 CFR part 17 as attributable costs.1 For the reasons volume-variable costs.’’ Id. at 1–2. The
follows: discussed below, the Commission revised definition of inframarginal costs
PART 17—MEDICAL adopts final rules on this topic, with does not impact the Commission’s
minor revisions to the proposed rules as findings in Order No. 3506. However,
■ 1. The authority citation for part 17 discussed in chapter IV. the definition cited in Order No. 3507,
continues to read as follows: II. Background ‘‘[i]nframarginal costs are variable costs
Authority: 38 U.S.C. 501, and as noted in that do not vary directly with volume,’’
On September 9, 2016, the would now be cited as ‘‘[i]nframarginal
specific sections.
Sections 17.640 and 17.647 also issued Commission issued Order No. 3506 after costs are variable costs that are not
under Public Law 114–2, sec. 4. consideration of a United Parcel volume-variable costs.’’ Id. at 1; Order
Sections 17.641 through 17.646 also issued Service, Inc. (UPS) petition which No. 3507 at 4; see also Order No. 3506
under 38 U.S.C. 501(a) and Public Law 114– sought to make changes to the at 10.
2, sec. 4. methodologies employed by the Postal
Service to account for the costs of the III. Review and Analysis of Comments
§ 17.110 [Amended]
Postal Service’s products in its periodic On October 17, 2016, the Commission
■ 2. Amend § 17.110 as follows: reports.2 In Proposal One, UPS received comments from Amazon
■ a. In paragraphs (b)(1)(i), (ii), and (iii), recommended that the Postal Service Fulfillment Services, Inc. (Amazon),5
remove all references to ‘‘December 31, calculate and attribute inframarginal the Public Representative,6 and the
2016’’ and add in each place ‘‘February costs to individual products in addition Postal Service.7 On October 18, 2016,
26, 2017’’. to the currently attributed volume- the Commission received comments
■ b. In paragraph (b)(2), remove all variable and product-specific fixed from UPS8 and, on October 20, 2016, it
references to ‘‘December 31, 2016’’ and costs. Petition, Proposal One at 1.
add in each place ‘‘February 26, 2017’’. Proposal Two dealt with reclassifying 3 Petition, Proposal Three at 1. The Commission
[FR Doc. 2016–29337 Filed 12–6–16; 8:45 am] some fixed costs as fully or partially declined to consider Proposal Three as it planned
to initiate its 5-year review pursuant to 39 U.S.C.
BILLING CODE 8320–01–P variable, and attributing those costs to 3633(b) following Order No. 3506’s issuance. Order
products. Petition, Proposal Two at 1. No. 3506 at 124, 125; see also Docket No. RM2017–
UPS also filed a third proposal, which 1, Order No. 3624, Advance Notice of Proposed
Rulemaking to Evaluate the Institutional Cost
POSTAL REGULATORY COMMISSION Contribution Requirement for Competitive
1 Notice of Proposed Rulemaking on Changes
Products, November 22, 2016.
39 CFR Parts 3015 and 3060 Concerning Attributable Costing, September 9, 2016 4 On October 7, 2016, UPS appealed Order No.
(Order No. 3507). See also Docket No. RM2016–2,
Order Concerning United Parcel Service, Inc.’s 3506 to the United States Court of Appeals for the
[Docket No. RM2016–13; Order No. 3641] District of Columbia Circuit. United Parcel Service,
Proposed Changes to Postal Service Costing
Methodologies (UPS Proposals One, Two, and Inc. v. Postal Regulatory Commission, No. 16–1354
Changes to Attributable Costing (D.C. Cir. filed Oct. 7, 2016) (Case No. 16–1354).
Three), September 9, 2016 (Order No. 3506).
5 Comments of Amazon Fulfillment Services, Inc.,
AGENCY: Postal Regulatory Commission. Discussed in greater detail below, the Commission
asabaliauskas on DSK3SPTVN1PROD with RULES
issued an errata related to Order No. 3506. Docket October 17, 2016 (Amazon Comments).
ACTION: Final rule. No. RM2016–2, Notice of Errata, October 19, 2016 6 Public Representative Comments, October 17,
(Errata). Any reference to Order No. 3506 refers to 2016 (PR Comments).
SUMMARY: The Commission is issuing a the updated version including the changes 7 Comments of the United States Postal Service in
set of final rules amending some identified in the Errata. Response to Order No. 3507, October 17, 2016
existing Commission rules related to 2 See generally Order No. 3506. See also Docket (Postal Service Comments).
No. RM2016–2, Petition of United Parcel Service, 8 United Parcel Service, Inc.’s Comments on
attributable costing. The final rules are Inc. for the Initiation of Proceedings to Make Notice of Proposed Rulemaking on Changes
consistent with methodology changes Changes to Postal Service Costing Methodologies, Concerning Attributable Costing, October 18, 2016
approved by the Commission. Relative October 8, 2015 (Petition). (UPS Comments). UPS also filed a motion for late
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Document Created: 2016-12-07 05:31:16
Document Modified: 2016-12-07 05:31:16
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Interim final rule. | |
| Contact | Bridget Souza, Office of Community Care (10D), Veterans Health Administration, Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2537. (This is not a toll-free number.) | |
| FR Citation | 81 FR 88117 | |
| RIN Number | 2900-AP87 | |
| CFR Associated | Administrative Practice and Procedure; Alcohol Abuse; Alcoholism; Claims; Day Care; Dental Health; Drug Abuse; Foreign Relations; Government Contracts; Grant Programs-Health; Grant Programs-Veterans; Health Care; Health Facilities; Health Professions; Health Records; Homeless; Medical and Dental Schools; Medical Devices; Medical Research; Mental Health Programs; Nursing Homes; Philippines; Reporting and Recordkeeping Requirements; Scholarships and Fellowships; Travel and Transportation Expenses and Veterans |
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