82_FR_45626 82 FR 45438 - Establishment of TRICARE Select and Other TRICARE Reforms

82 FR 45438 - Establishment of TRICARE Select and Other TRICARE Reforms

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 82, Issue 188 (September 29, 2017)

Page Range45438-45461
FR Document2017-20392

This interim final rule implements the primary features of section 701 and partially implements several other sections of the National Defense Authorization Act for Fiscal Year 2017 (NDAA-17). The law makes significant changes to the TRICARE program, especially to the health maintenance organization (HMO)-like health plan, known as TRICARE Prime; to the preferred provider organization (PPO) health plan, previously called TRICARE Extra which is to be replaced by TRICARE Select; and to the third health care option, known as TRICARE Standard, which will be terminated as of December 31, 2017, and also replaced by TRICARE Select. The statute also adopts a new health plan enrollment system under TRICARE and new provisions for access to care, high value services, preventive care, and healthy lifestyles. In implementing the statutory changes, this interim final rule makes a number of improvements to TRICARE.

Federal Register, Volume 82 Issue 188 (Friday, September 29, 2017)
[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]
[Rules and Regulations]
[Pages 45438-45461]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20392]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 199

[Docket ID: DOD-2017-HA-0039]
RIN 0720-AB70


Establishment of TRICARE Select and Other TRICARE Reforms

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

ACTION: Interim final rule.

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SUMMARY: This interim final rule implements the primary features of 
section 701 and partially implements several other sections of the 
National Defense Authorization Act for Fiscal Year 2017 (NDAA-17). The 
law makes significant changes to the TRICARE program, especially to the 
health maintenance organization (HMO)-like health plan, known as 
TRICARE Prime; to the preferred provider organization (PPO) health 
plan, previously called TRICARE Extra which is to be replaced

[[Page 45439]]

by TRICARE Select; and to the third health care option, known as 
TRICARE Standard, which will be terminated as of December 31, 2017, and 
also replaced by TRICARE Select. The statute also adopts a new health 
plan enrollment system under TRICARE and new provisions for access to 
care, high value services, preventive care, and healthy lifestyles. In 
implementing the statutory changes, this interim final rule makes a 
number of improvements to TRICARE.

DATES: This interim final rule is effective October 1, 2017. Comments 
will be received by November 28, 2017.

ADDRESSES: You may submit comments, identified by docket number and 
title, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Department of Defense, Office of the Deputy Chief 
Management Officer, Directorate for Oversight and Compliance, 
Regulatory and Advisory Committee Division, 4800 Mark Center Drive, 
Mailbox #24, Suite 08D09B, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency 
name, docket number, or title for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
Internet at http://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Mr. Mark Ellis, Defense Health Agency, 
TRICARE Health Plan, (703) 681-0063.

SUPPLEMENTARY INFORMATION:

I. Executive Summary

A. Purpose of the Interim Final Rule

    In implementing section 701 and partially implementing several 
other sections of NDAA-17, this interim final rule advances all four 
components of the Military Health System's quadruple aim of improved 
readiness, better care, better health, and lower cost. The aim of 
improved readiness is served by reinforcing the vital role of the 
TRICARE Prime health plan to refer patients, particularly those needing 
specialty care, to military medical treatment facilities (MTFs) in 
order to ensure that military health care providers maintain clinical 
currency and proficiency in their professional fields. The objective of 
better care is enhanced by a number of improvements in beneficiary 
access to health care services, including increased geographical 
coverage for the TRICARE Select provider network, reduced 
administrative hurdles for TRICARE Prime enrollees to obtain urgent 
care services and specialty care referrals, and promotion of high value 
services and medications. The goal of better health is advanced by 
expanding TRICARE coverage of preventive care services, treatment of 
obesity, high-value care, and telehealth. And the aim of lower cost is 
furthered by refining cost-benefit assessments for TRICARE plan 
specifications that remain under DoD's discretion and adding 
flexibilities to incentivize high-value health care services.

B. Legal Authority for the Regulatory Action

    This interim final rule is required to implement or partially 
implement several sections of NDAA-17, including 701, 706, 715, 718, 
and 729. The legal authority for this rule also includes chapter 55 of 
title 10, United States Code.

C. Summary of Major Provisions of the Interim Final Rule

    The major provisions of the interim final rule are:
    [rtarr8] The establishment of TRICARE Select as a self-managed, PPO 
option under the TRICARE program. TRICARE Select replaces the TRICARE 
Extra and Standard programs and adopts a number of improvements, 
including fixed copayments rather than cost shares for covered benefits 
provided by a civilian network provider. TRICARE Select beneficiaries 
can choose any provider for their healthcare; however, they will enjoy 
lower out-of-pocket costs if they choose preferred providers within the 
TRICARE civilian network.
    [rtarr8] The continuation of TRICARE Prime as a managed care, HMO-
like option under the TRICARE program. TRICARE Prime adopts a number of 
changes to conform to specifications in the new law, including 
categories of health care services applicable to the determination of 
copayment amounts (such as primary care, specialty care, emergency 
care).
    [rtarr8] Improved access to care, including a codified requirement 
that the TRICARE Select health care plan is available in all locations 
and at least 85% of the U.S. beneficiary TRICARE Select population is 
covered by the TRICARE network. Also, for TRICARE Prime enrollees, 
there are new procedures to ensure timely appointments for health care 
services and to authorize some or all urgent care visits without the 
need for referral from a primary care manager.
    [rtarr8] Promotion of high value services and medications, 
telehealth services, preventive health care, and healthy lifestyles.
    [rtarr8] A new design for the health care enrollment system, 
including mandatory enrollment to maintain TRICARE coverage, an annual 
open season enrollment period, and hassle-free enrollment procedures.
    [rtarr8] Other features include preservation of benefits for active 
duty dependents and TRICARE-for-Life beneficiaries, and changes to the 
TRICARE Young Adult (TYA), TRICARE Reserve Select (TRS), TRICARE 
Retired Reserve (TRR), Continued Health Care Benefit Program (CHCBP), 
and TRICARE Retiree Dental Program (TRDP) to conform with new statutory 
requirements.

II. Provisions of Interim Final Rule

A. Establishment of TRICARE Select

    The rule implements the new law (section 701 of NDAA-17) that 
establishes TRICARE Select as a self-managed, PPO program. It allows 
beneficiaries to use the TRICARE civilian provider network, with 
reduced out-of-pocket costs compared to care from non-network 
providers, as well as military treatment facilities (when space is 
available). Similar to the long-operating ``TRICARE Extra'' and 
``TRICARE Standard'' plans, which TRICARE Select replaces, a major 
feature is that enrollees will not have restrictions on their freedom 
of choice with respect to health care providers. TRICARE Select is 
based primarily on 10 U.S.C. 1075 (as added by section 701 of NDAA-17) 
and 10 U.S.C. 1097. With respect to beneficiary cost sharing, the 
statute introduces a new split of beneficiaries into two groups: One 
group (which the rule refers to as ``Group A'') consists of sponsors 
and their family members who first became affiliated with the military 
through enlistment or appointment before January 1, 2018, and the 
second group (referred to as ``Group B'') who first became affiliated 
on or after January 1, 2018. In general, beneficiary out-of-pocket 
costs for Group B are higher than for Group A.
    In addition to implementing the statutory specifications, the 
interim final rule also makes improvements for TRICARE Select Group A 
enrollees, compared to the features of the old TRICARE Extra plan. One 
such improvement is to convert the current cost-sharing requirement of 
15% for active duty family members and 20% for retirees and their 
family members of the allowable charge for care from a network provider 
to a fixed dollar

[[Page 45440]]

copayment calculated to approximately equal 15% or 20% of the average 
allowable charge for the category of care involved. Consistent with 
prevailing private sector health program practices, the fixed dollar 
copayment is more predictable for the patient and easier for the 
network health care provider to administer. The breakdown of categories 
of care (such as outpatient primary care visit, specialty care visit, 
emergency room visit, etc.) contained in the rule is the same as the 
categories now specified in the statute for Group B Select enrollees.
    A second improvement in TRICARE Select (for both Group A and Group 
B) is that additional preventive care services that previously were 
only offered to TRICARE Prime beneficiaries will now (under the 
authority of 10 U.S.C. 1097 and NDAA-17) also be covered for Select 
enrollees when furnished by a network health care provider. These are 
services recommended by the United States Preventive Services Task 
Force and the Health Resources and Services Administration of the 
Department of Health and Human Services.
    These improvements are based partly on the statutory provision (10 
U.S.C. 1075(c)(2)) that Group A Select enrollee cost-sharing 
requirements are calculated as if TRICARE Extra were still being 
carried out by DoD. TRICARE Extra specifications are based on the 
underlying authority of 10 U.S.C. 1097, which allows DoD to adopt 
special rules for the PPO plan. This statute was the basis for the 
original set of rules for TRICARE Extra, which were adopted in 1995, 
and is the authority for these improved rules for TRICARE Select Group 
A, adopted as if TRICARE Extra were still being carried out by DoD.
    Under the interim final rule, the cost sharing rules applicable to 
TRICARE Select Group B are those specified in 10 U.S.C. 1075. For 
TRICARE Select Group A, in addition to the copayment rules noted above, 
consistent with 10 U.S.C. 1075, an enrollment fee of $150 per person or 
$300 per family will begin January 1, 2021, for most retiree families, 
with annual updates thereafter based on the cost of living adjustment 
(COLA) applied to retired pay. At the same time, the catastrophic cap 
will increase from $3,000 to $3,500 for these retiree families. These 
changes, however, will not apply to TRICARE Select Group A active duty 
families, survivors of members who died while on active duty, or 
disability retiree families; that is, no enrollment fee will be 
applicable to this group and the applicable catastrophic cap will 
continue to be $1,000 for active duty families as established under 10 
U.S.C. 1079(b) and $3,000 for survivors of members who died while on 
active duty or disability retiree families as established under 10 
U.S.C. 1086(b).

B. Continuation of TRICARE Prime

    A second major feature of this interim final rule, based primarily 
on 10 U.S.C. 1075a (also added by section 701 of NDAA-17), is the 
continuation of TRICARE Prime as a managed care, HMO-like program. It 
generally features use of military treatment facilities (MTFs) and 
substantially reduced out-of-pocket costs for authorized care provided 
outside MTFs. Beneficiaries generally agree to use military treatment 
facilities and designated civilian provider networks and to follow 
certain managed care rules and procedures. Like with TRICARE Select, 
with respect to beneficiary cost sharing, the statute introduces a new 
split of beneficiaries into two groups (again referred to in the rule 
as Group A and Group B) based on the military sponsor's initial 
enlistment or appointment before January 1, 2018 (Group A), or on or 
after that date (Group B). Beneficiary cost sharing for Group B is 
slightly higher than for Group A.
    As with TRICARE Select, the cost sharing specifications for TRICARE 
Prime Group B are set forth in the statute, and those for Group A are 
calculated in accordance with other health care provisions of title 10 
(rather than the new section 1075a). The primary original statutory 
authority for the TRICARE Prime health plan, established by DoD 
regulation in 1995, was 10 U.S.C. 1097, and this continues to be relied 
upon for the continued operation of TRICARE Prime for Group A. Also 
relevant to the original terms of TRICARE Prime was section 731 of the 
National Defense Authorization Act for Fiscal Year 1994. That law 
required DoD to include, to the maximum extent practicable, the HMO-
like option under TRICARE. That law also required that the HMO-like 
option ``shall be administered so that the costs incurred by the 
Secretary under the TRICARE program are no greater than the costs that 
would otherwise be incurred'', to provide health care to beneficiaries. 
The extent to which this ``cost neutrality'' requirement has not been 
maintained was recently highlighted by the Congressional Budget Office: 
``CBO estimates that under current law, a typical retiree household 
enrolled in TRICARE Prime as a `family' in 2018, and for whom TRICARE 
is the primary payer of health benefits, will cost DoD about $17,400, 
and a typical family that uses Standard/Extra will cost DoD about 
$12,700.'' \1\
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    \1\ Congressional Budget Office Cost Estimate, S. 2943, National 
Defense Authorization Act for Fiscal Year 2017, June 10, 2016, page 
17.
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    Based on the TRICARE Prime cost neutrality provision in NDAA-1994, 
the original 1995 TRICARE Prime regulation included (at 32 CFR 
199.18(g)) that cost sharing requirements ``may be updated for 
subsequent years to the extent necessary to maintain compliance with 
statutory requirements pertaining to government costs.'' Since NDAA-
1994, Congress took away DoD's discretion for enrollment fee increases, 
which are now tied by law to the retired pay COLA. However, DoD 
continues to have discretion to update copayment amounts--which have 
not changed since 1995--and this discretion is confirmed by the newly 
enacted 10 U.S.C. 1075a(a)(3).
    This discretion to update copayment amounts is continued in the 
interim final rule, but the framework for setting Prime Group A 
copayment amounts is being revised. Specifically, DoD is adopting for 
Group A the same structure of categories of care that Congress adopted 
for Group B. Thus, for example, while the current TRICARE Prime 
copayment amount makes no distinction between primary care and 
specialty care services, the new Group B structure under the statute 
does have a different copayment for primary care and specialty care. 
Under the rule, copayment amounts for Group A beneficiaries will be set 
for each of those categories, as well as the other categories of care 
the statute now specifies for Group B enrollees. The interim final rule 
does not specify the amount for each category of care. Rather, 
consistent with DoD's discretion under current statute and regulation, 
the actual amount will be set each year prior to open season 
enrollment. The interim final rule does, however, specify that the 
amount for each category of care for Group A enrollees may not exceed 
the amount that Congress set for Group B enrollees. In this way, the 
Prime copay structure would be in alignment with proposed legislative 
changes recommended by the Department to Congress for enactment this 
year to eliminate the ``grandfathering'' of Group A retiree families 
and return to a single TRICARE Prime model for all working-age retiree 
families. Again, it should be noted that this applies only to per-
service copayments; enrollment fee increases for Group A enrollees will 
continue to be based on the retired pay COLA.

[[Page 45441]]

    The interim final rule also continues the point-of-service 
provision of the current TRICARE Prime plan. Any health care services 
obtained by a Prime enrollee not in accordance with the rules and 
procedures of Prime (e.g. failure to obtain a primary care manager 
referral when such a referral is required or seeing a non-network 
provider when a network provider is available) will not be paid for 
under Prime rules, but may be covered by the point-of-service option. 
This results in higher cost sharing--specifically, a deductible of $300 
per person and $600 per family, and a copayment of 50 percent of the 
allowable charges after the deductible. Point-of-service charges do not 
count against the annual catastrophic cap. These point-of-service rules 
continue for TRICARE Prime Group A and are also applicable to Group B. 
For Group B, the rules for point-of-service charges are specified in 10 
U.S.C. 1075a(c), which clarifies that point-of-service cost sharing is 
``notwithstanding'' the usual cost sharing rules of Prime Group B 
enrollees.
    One other matter on which the interim final rule preserves DoD 
discretion, similar to that in the current regulation, is with respect 
to the locations where TRICARE Prime is offered. This is noted in the 
current regulation at 32 CFR 199.17(a)(5). Under the interim final 
rule, the locations where TRICARE Prime will be offered will be 
determined by the Director, Defense Health Agency (DHA) and announced 
prior to the annual open season enrollment period. The guiding 
principle for this decision is that the purpose of TRICARE Prime is to 
support the medical readiness of the armed forces and the readiness of 
medical personnel. Codification in regulation of this guiding principle 
is a corollary to the codification by Congress in statute, specifically 
sections 703 and 725 of NDAA-17 that MTFs exist to support the medical 
readiness of the armed forces and the readiness of medical personnel.
    TRICARE Prime, especially for working age retirees and family 
members, provides MTFs clinical workload, including for a range of 
medical specialty areas that permit military health care providers to 
maintain currency and proficiency in their respective clinical fields. 
This important support of a ready medical force is what justifies the 
higher government cost of Prime (which CBO estimates at $17,400 per 
retiree family), notwithstanding the original statutory requirement of 
cost neutrality between TRICARE Prime and TRICARE Standard. This cost-
benefit assessment supports the conclusion that it is practicable to 
offer TRICARE Prime in areas where it supports the medical readiness of 
one or more MTFs. Additionally, where TRICARE Prime is offered, it may 
be limited to active duty family members if the Director, DHA 
determines it is not practicable to offer TRICARE Prime to retired 
beneficiaries as well--a determination that again would take into 
account the nature of the supported MTF and the range of services it 
offers.

C. Improved Access to Care

    A third significant change in the interim final rule is a set of 
improvements in standards for access to care. The TRICARE Select plan 
replaces TRICARE Standard as the generally applicable plan in all 
areas. Under TRICARE Select, eligible beneficiaries can choose any 
provider for their healthcare, and they will enjoy lower out-of-pocket 
costs if they choose providers within the TRICARE civilian network. The 
vast majority of TRICARE beneficiaries located in the United States 
will have access to TRICARE network providers (it is DoD's plan that at 
least 85% of the U.S. beneficiary population under TRICARE Select will 
be covered by the network upon implementation), similar to the current 
TRICARE Extra option, but with the benefit of predictable fixed dollar 
copayments. In cases in which a network provider is not available to a 
TRICARE Select enrollee, such as in remote locations where there are 
very few primary or specialty providers, enrollees will still have 
access to any TRICARE authorized provider, with cost sharing comparable 
to the current TRICARE Standard plan (i.e. 25% for retired category 
beneficiaries).
    A second interim final rule enhancement for access to care is that 
if a TRICARE Prime enrollee seeks to obtain an appointment for care 
from the managed care support contractor but is not offered an 
appointment within the applicable access time standards from a network 
provider, the enrollee will be authorized to receive care from any 
authorized provider without incurring the additional fees associated 
with point-of-service care.
    A third access to care improvement under the interim final rule is 
that the TRICARE Prime referral requirement may be waived for urgent 
care visits for Prime enrollees other than active duty members. This is 
similar to the current pilot program, which waives the referral 
requirement (other than for active duty members) for up to two urgent 
care visits per year. The specific number of urgent care visits without 
a referral will be determined annually prior to the beginning of the 
open season enrollment period.
    A fourth access to care improvement is adoption of the new 
statutory provision that a primary care manager who believes a referral 
to a specialty care network provider is medically necessary and 
appropriate need not obtain pre-authorization from the managed care 
support contractor. Managed care support contractor preauthorization is 
only required with respect to a primary care manager's referral for 
inpatient hospitalization, inpatient care at a skilled nursing 
facility, inpatient care at a residential treatment center and 
inpatient care at a rehabilitation facility.

D. Promotion of High Value Services and Medications and Telehealth 
Services

    In addition to the expansion noted above concerning preventive care 
services, the interim final rule makes a number of other improvements 
in TRICARE Prime and TRICARE Select based on provisions of sections 
701(h), 706, 718, and 729 of NDAA-17. Section 701(h), among other 
things, provides for a four-year pilot program to encourage use by 
patients of high value services and medications. Section 706, among 
other things, authorizes special arrangements with provider groups that 
will improve population-based health outcomes and focus more on 
preventive care. Section 729 calls for special actions to incentivize 
medical intervention programs to address chronic diseases and other 
conditions and healthy lifestyle interventions. Section 718, among 
other things, requires actions to promote greater use of telehealth 
services under TRICARE. While these sections of NDAA-17 also require 
actions outside the scope of this interim final rule (such as 
contracting actions) they can be partially implemented, consistent with 
Congressional intent, in this rule. The interim final rule does this in 
several ways.
    First, the interim final rule authorizes coverage under TRICARE 
Prime and TRICARE Select for medically necessary treatment of obesity 
even if it is the sole or major condition treated. Under 10 U.S.C. 
1079(a)(10), this is disallowed under the basic program. However, it is 
DoD's conclusion that the underlying authority of 10 U.S.C. 1097, 
together with section 729 of NDAA-17 (which specifically authorizes 
medical intervention for obesity), allow the Department to cover these 
services when provided by a network provider

[[Page 45442]]

for a TRICARE Prime or TRICARE Select enrollee.
    Second, the interim final rule codifies authority of the Director, 
DHA to waive or reduce copayment requirements for TRICARE Prime and 
TRICARE Select enrollees for care received from network providers for 
certain health care services that provide especially high value in 
terms of better health outcomes for patients. Authority for this 
includes section 706 and 729 of NDAA-17. This is also consistent with 
the four-year pilot program authority of section 701(h), but does not 
necessarily rely on that time-limited authority. Consistent with the 
intent of these sections, the Department also intends to use the 
authority of Sec.  199.21(j)(3) of the TRICARE Pharmacy Benefits 
Program section of the TRICARE regulations to encourage use of high 
value medications by reducing or eliminating the copayment of selected 
medicines.
    Third, consistent with section 718 of NDAA-17, the interim final 
rule provides that health care services covered by TRICARE and provided 
through the use of telehealth modalities are covered services to the 
same extent as if provided in person at the location of the patient if 
those services are medically necessary and appropriate for such 
modalities. The Director, DHA will establish standardized payment 
methods to reimburse for such services, and shall reduce or eliminate, 
as appropriate, beneficiary copayments or cost-shares for such services 
in cases in which a copayment would otherwise apply. This may be done 
by designating some telehealth services as high value services for 
which lower copays apply as well as the elimination of any beneficiary 
cost-sharing related to originating site fees when used to support the 
provision of telehealth services.

E. Changes to Health Plan Enrollment System

    A fourth major change in the interim final rule is its 
implementation of the new statutory design for the health care 
enrollment system. Starting in calendar year 2018, beneficiaries other 
than active duty members and TRICARE-for-Life beneficiaries must elect 
to enroll in TRICARE Select or TRICARE Prime in order to be covered by 
the private sector care portion of TRICARE. While TRICARE-for-Life 
beneficiaries under the age of 65 are permitted to enroll in TRICARE 
Prime under limited circumstances, their failure to enroll will not 
affect their coverage by the private sector care portion of TRICARE. 
Enrollment will be done during an open season period prior to the 
beginning of each plan year, which operates with the calendar year. An 
enrollment choice will be effective for the plan year. As an exception 
to the open season enrollment rule, enrollment changes can be made 
during the plan year for certain qualifying events, such as a change in 
eligibility status, marriage, divorce, birth of a new family member, 
relocation, loss of other health insurance, or other events.
    Eligible Prime or Select beneficiaries who do not enroll will no 
longer have private sector care coverage under the TRICARE program 
(including the TRICARE retail pharmacy and mail order pharmacy 
programs) until the next open enrollment season or they have a 
qualifying event, except that they do not lose any statutory 
eligibility for space-available care in military medical treatment 
facilities. There is a limited grace period exception to this 
enrollment requirement for calendar year 2018, as provided in section 
701(d)(3) of NDAA-17, to give beneficiaries another chance to adjust to 
this new requirement for annual enrollment. For the administrative 
convenience of beneficiaries, there are also procedures for automatic 
enrollment in Prime and Select for most active duty family members, and 
automatic renewal of enrollments of covered beneficiaries, subject to 
the opportunity to decline or cancel.
    Due to a compressed implementation schedule that precludes an 
annual open season enrollment period in calendar year 2017 for existing 
TRICARE beneficiaries to elect or change their TRICARE coverage, the 
Department will convert existing TRICARE Standard coverage to TRICARE 
Select coverage effective January 1, 2018. All other existing TRICARE 
coverages will be renewed effective January 1, 2018. As noted 
previously, beneficiaries may elect to change their TRICARE coverage 
anytime during the limited grace period in calendar year 2018.

F. Additional Provisions of Interim Final Rule

    The interim final rule has several other noteworthy provisions. 
First, there are no changes in benefits for TRICARE-for-Life 
beneficiaries, or generally in cost sharing levels for active duty 
family members. Second, although ``TRICARE Standard'' is terminated as 
a distinct TRICARE plan as of December 31, 2017, basic program benefits 
(as established under 32 CFR 199.4) continue under both TRICARE Prime 
and TRICARE Select. In addition, when a TRICARE Select beneficiary 
receives services covered by the basic program benefits from an 
authorized health care provider who is not part of the TRICARE provider 
network, that care is covered by TRICARE as ``out-of-network'' care 
under terms that match the old TRICARE Standard plan. Third, in order 
to transition enrollment fees, deductibles, and catastrophic caps from 
a fiscal year basis to a calendar year basis, special rules apply for 
the last quarter of calendar year 2017, including that a Prime 
enrollee's enrollment fee for the quarter is one-fourth of the 
enrollment fee for fiscal year 2017, and the deductible amount and the 
catastrophic cap amount for fiscal year 2017 will be applicable to the 
15-month period of October 1, 2016, through December 31, 2017. A 
similar transition rule will apply to TRICARE for Life, TYA, TRR and 
TRS to align remaining program deductibles and/or catastrophic caps 
from a fiscal year to calendar year basis for consistency and ease of 
administration.
    Additionally, the interim final rule adopts several changes to 
regulatory provisions applicable to the TYA, TRS, TRR, and TRDP 
programs to conform with new statutory requirements. In implementing 
section 701(a) of NDAA-17, together with section 701(j)(1)(F), the rule 
conforms the TYA regulation to the statutory language which established 
the eligibility of TYA under 10 U.S.C. 1110b to enroll in TRICARE 
Select and provided that the TYA premium shall apply instead of the 
otherwise applicable TRICARE Prime or Select enrollment fee. In 
implementing section 701(j)(1)(B), the rule conforms the TRICARE 
Reserve Select plan regulation to the statutory language which defines 
``TRICARE Reserve Select'' as the TRICARE Select self-managed, 
preferred-provider network option under 10 U.S.C. 1075 made available 
to beneficiaries under 10 U.S.C. 1076d and requires payment of a 
premium for coverage instead of the TRICARE Select enrollment fee. In 
implementing section 701(j)(1)(C), the rule conforms the TRICARE 
Retired Reserve plan regulation to the statutory language which defines 
``TRICARE Retired Reserve'' as the TRICARE Select self-managed, 
preferred-provider network option under 10 U.S.C. 1075 made available 
to beneficiaries under 10 U.S.C. 1076e and requires payment of a 
premium for coverage instead of the TRICARE Select enrollment fee. In 
implementing section 701(a) and 701(e), the rule conforms the CHCBP 
regulation to replace TRICARE Standard with TRICARE Select as the 
continuation health care benefit for Department of Defense and the 
other uniformed services beneficiaries losing eligibility.

[[Page 45443]]

In implementing section 715, the rule conforms the TRDP regulation to 
the statutory language which authorizes an interagency agreement 
between the Department of Defense and the Office of Personnel 
Management to allow beneficiaries otherwise eligible for the TRDP to 
enroll in a dental insurance plan offered under the Federal Employees 
Dental and Vision Insurance Program. Under the statute, TRDP 
beneficiaries will have the opportunity to access a dental plan with 
significantly higher annual maximum benefit and a lower premium cost 
than available under the current TRDP, while giving the Department an 
opportunity to eliminate costs associated with procuring and 
administering a separate TRDP contract.
    Also, the interim final rule adopts several changes to regulatory 
provisions applicable to benefit coverage of medically necessary food 
and vitamins. Section 714 of NDAA-17 confirms long-standing TRICARE 
policy authorizing benefit coverage of medically necessary vitamins 
when prescribed for management of a covered disease or condition. In 
addition, while section 714 confirms long-standing TRICARE policy 
authorizing medical nutritional therapy coverage of medically necessary 
food and medical equipment/supplies necessary to administer such food 
when prescribed for dietary management of a covered disease or 
condition, the law also allows the medically necessary food benefit to 
include coverage of low protein modified foods. Consistent with this we 
also recognize the role of Nutritionists and Registered Dieticians in 
the appropriate planning for the use of medically necessary foods.
    Additionally, the interim final rule adopts several conforming 
changes to regulatory provisions applicable to general TRICARE 
administration, the TRICARE Pharmacy Benefits Program and the Extended 
Health Care Option to reflect transition of deductibles, catastrophic 
caps, and program reimbursement limitations, as applicable, from a 
fiscal year basis to a calendar year basis for consistency and ease of 
administration. Simultaneously, technical corrections are being made to 
the TRICARE Pharmacy Benefits Program to conform regulation provisions 
to statutory provisions enacted by section 702 of the National Defense 
Authorization Act for Fiscal Year 2016.
    Finally, the interim final rule includes authority for the 
Director, DHA to establish preferred provider networks in areas outside 
the United States where it is determined to be economically in the best 
interests of the Department of Defense. As a result of the TRICARE 
Philippines Demonstration Project, which commenced in January 1, 2013, 
the Department has determined that the TRICARE contracted preferred 
provider network established in designated locations in the Philippines 
provided adequate access to beneficiaries with 97 percent of care 
delivered by network providers. It also successfully achieved the 
demonstration goals of reducing aberrant billing activities, reduced 
out-of-pocket expenses for beneficiaries, and increased overall 
beneficiary satisfaction while leading to a net savings to the 
government. Although the demonstration was projected to continue 
through December 31, 2018, the Philippines preferred provider network 
is determined to be economically in the interests of the Department of 
Defense and the demonstration shall terminate effective December 31, 
2017, with transition of the demonstration's approved preferred 
provider network to a TRICARE Select preferred provider network 
effective January 1, 2018.

G. Recap: Cost Sharing Tables

    The following two tables summarize beneficiary fees (including 
enrollment fees, deductibles, cost sharing amounts, and catastrophic 
loss protection limits) under TRICARE Select and TRICARE Prime for 
calendar year 2018. For future calendar years, all fees are subject to 
review and annual updating in accordance with sections 1075, 1075a, and 
1097 of title 10, United States Code. Table 1 is for active duty family 
members (ADFMs); Table 2 is for retiree families. As a guide for 
understanding the tables:
    [rtarr8] For services listed as ``to be determined (TBD)'', the 
Director, DHA will ensure the applicable fee for calendar year 2018 
will be available at www.health.mil/rates before December 1, 2017.
    [rtarr8] For services not specifically addressed in these tables, 
applicable cost-sharing requirements shall be established by the 
Director, DHA and published annually.
    [rtarr8] For services designated as ``IN'', the listed fee is for 
covered services or supplies obtained ``in-network,'' meaning received 
from TRICARE authorized network providers.
    [rtarr8] For TRICARE Prime beneficiaries, if covered services or 
supplies are not obtained in accordance with the rules and procedures 
of Prime (e.g., failure to obtain a required referral or unauthorized 
use of a non-network provider), the services or supplies will be 
reimbursed under a point-of-service option for which there is a 
deductible of $300 per person or $600 per family and a cost share of 50 
percent of the allowable charges after the deductible.
    [rtarr8] For services designated as ``OON'', the listed fee for 
TRICARE Select beneficiaries is for covered services or supplies 
obtained ``out-of-network'', meaning received from non-network TRICARE 
authorized providers.
    [rtarr8] Certain preventive services have no cost sharing whether 
received from network or non-network providers. However, certain 
preventive services are not covered services for TRICARE Prime or 
Select beneficiaries unless obtained from network providers. 
Additionally, TRICARE Prime beneficiaries are required to obtain 
services in accordance with the rules and procedures of Prime to avoid 
point-of-service charges.
    [rtarr8] Enrollment fees and deductibles are listed in the tables 
as individual/family, indicating the dollar amounts applicable per 
individual or per family.
    [rtarr8] The criteria for fees associated with High Value Primary 
Care Outpatient Care and High Value Specialty Outpatient Care are under 
development but will be designed to encourage beneficiaries to receive 
health care services from high-value providers as highlighted in the 
contractor's network provider directory. When finalized, the fees will 
be made available at www.health.mil/rates.
    [rtarr8] Inpatient subsistence refers to the rate charged for 
inpatient care obtained in a military treatment facility.
    [rtarr8] ``COLA'' is the cost-of-living adjustment for retired pay 
under 10 U.S.C. 1401a by which certain fees are required to be annually 
indexed.
    [rtarr8] ``<'' means less than; <= means less than or equal to.

[[Page 45444]]



              Table 1--TRICARE Select and TRICARE Prime Cost Sharing for Active Duty Family Members
                                             for Calendar Year 2018
----------------------------------------------------------------------------------------------------------------
                                    Select Group A      Select Group B       Prime Group A       Prime Group B
                                         ADFMs               ADFMs               ADFMs               ADFMs
----------------------------------------------------------------------------------------------------------------
Annual Enrollment...............  $0................  $0................  $0................  $0
Annual Deductible...............  E1-E4: $50/$100;    E1-E4: $50/$100;    0.................  0
                                   E5 & above: $150/   E5 & above: $150/
                                   $300.               $300.
Annual Catastrophic Cap.........  $1,000............  $1,000............  1,000.............  1,000
Preventive Care Outpatient Visit  $0................  $0................  0.................  0
Primary Care Outpatient Visit...  Fixed fee to = 15%  $15 primary care    0.................  0
                                   of average          IN; 20% OON.
                                   allowable amount
                                   IN; 20% OON.
Specialty Care Outpatient Visit.  Fixed fee to = 15%  $25 specialty care  0.................  0
                                   of average          IN; 20% OON.
                                   allowable amount
                                   IN; 20% OON.
High-Value Primary Care           Under Development;  Under Development;  0.................  0
 Outpatient Visit.                 Less than normal    Less than normal
                                   primary care        primary care
                                   amount.             amount.
High-Value Specialty Care         Under Development;  Under Development;  0.................  0
 Outpatient Visit.                 Less than normal    Less than normal
                                   primary care        primary care
                                   amount.             amount.
Emergency Room Visit............  Fixed fee to = 15%  $40 IN; 20% OON...  0.................  0
                                   of average
                                   allowable amount
                                   IN; 20% OON.
Urgent Care Center..............  Same as primary     $20 IN; 20% OON...  0.................  0
                                   care outpatient
                                   amount IN; 20%
                                   OON.
Ambulatory Surgery..............  $25...............  $25 IN; 20% OON...  0.................  0
Ambulance Service (not including  Fixed fee to = 15%  $15 IN; 20% OON...  0.................  0
 air).                             of average
                                   allowable amount
                                   IN; 20% OON.
Durable Medical Equipment.......  15% IN; 20% OON...  10% IN; 20% OON...  0.................  0
Inpatient Hospital Admission....  Subsistence charge/ $60/admission IN;   0.................  0
                                   day, minimum $25/   20% OON.
                                   admission.
Inpatient Skilled Nursing/Rehab   Subsistence charge/ $25/day IN; $50/    0.................  0
 Facility.                         day, minimum $25/   day OON.
                                   admission.
----------------------------------------------------------------------------------------------------------------


       Table 2--TRICARE Select and TRICARE Prime Cost Sharing for Retiree Families for Calendar Year 2018
----------------------------------------------------------------------------------------------------------------
                                    Select Group A      Select Group B       Prime Group A       Prime Group B
                                       Retirees            Retirees            Retirees            Retirees
----------------------------------------------------------------------------------------------------------------
Annual Enrollment...............  $0 until 2021;      $450/$900.........  FY17 amount         $350/$700.
                                   $150/$300 in 2021                       ($282.60/$565.20)
                                   +COLA?                                  +COLA.
Annual Deductible...............  $150/$300.........  $150/$300 IN; $300/ $0................  $0.
                                                       $600 OON.
Annual Catastrophic Cap.........  $3,000 until 2021;  $3,500............  $3,000............  $3,500.
                                   $3,500 in 2021.
Preventive Care Visit...........  $0................  $0................  $0................  $0.
Primary Care Outpatient Visit...  Fixed fee that =    $25 primary IN;     TBD, <=$20 primary  $20 primary.
                                   20% of average      25% OON.
                                   allowable amount
                                   IN; 25% OON.
Specialty Care Outpatient Visit.  Fixed fee that =    $40 specialty IN;   TBD, <=$30          $30 specialty.
                                   20% of average      25% OON.            specialty.
                                   allowable amount
                                   IN; 25% OON.
High Value Primary Care OP Visit  Under Development;  Under Development;  Under Development;  Under Development;
                                   


                 

                                                  45438            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  power and responsibilities between the                    While the DEA does not have a basis                 List of Subjects in 21 CFR Part 1308
                                                  Federal Government and Indian tribes.                   to estimate the number of affected                      Administrative practice and
                                                                                                          entities, the DEA estimates that the                  procedure, Drug traffic control,
                                                  Regulatory Flexibility Act
                                                                                                          maximum number of affected entities is                Reporting and recordkeeping
                                                     The Administrator, in accordance                     436,761 of which 425,856 are estimated                requirements.
                                                  with the Regulatory Flexibility Act (5                  to be small entities. Since the affected
                                                                                                          entities are expected to handle other                   For the reasons set out above, 21 CFR
                                                  U.S.C. 601–612) (RFA), has reviewed
                                                                                                          controlled substances and maintain                    part 1308 is amended as follows:
                                                  this rule and by approving it certifies
                                                  that it will not have a significant                     security and recordkeeping facilities                 PART 1308—SCHEDULES OF
                                                  economic impact on a substantial                        and processes consistent with                         CONTROLLED SUBSTANCES
                                                  number of small entities. The purpose of                controlled substances, the DEA
                                                  this rule is to remove naldemedine from                 estimates any economic impact will be                 ■ 1. The authority citation for 21 CFR
                                                  the list of schedules of the CSA. This                  minimal. Because of these facts, this                 part 1308 continues to read as follows:
                                                  action removes regulatory controls and                  rule will not have a significant
                                                                                                                                                                  Authority: 21 U.S.C. 811, 812, 871(b),
                                                  administrative, civil, and criminal                     economic impact on a substantial                      956(b), unless otherwise noted.
                                                  sanctions applicable to controlled                      number of small entities.
                                                  substances for handlers and proposed                                                                          ■ 2. In § 1308.12, revise the introductory
                                                                                                          Unfunded Mandates Reform Act of 1995                  text of paragraph (b)(1) to read as
                                                  handlers of naldemedine. Accordingly,
                                                  it has the potential for some economic                    In accordance with the Unfunded                     follows:
                                                  impact in the form of cost savings.                     Mandates Reform Act (UMRA) of 1995,
                                                                                                                                                                § 1308.12   Schedule II.
                                                                                                          2 U.S.C. 1501 et seq., the DEA has
                                                     This rule will affect all persons who                                                                      *     *    *      *     *
                                                                                                          determined and certifies that this action
                                                  handle, or propose to handle,                                                                                   (b) * * *
                                                                                                          would not result in any Federal
                                                  naldemedine. Due to the wide variety of                                                                         (1) Opium and opiate, and any salt,
                                                                                                          mandate that may result ‘‘in the
                                                  unidentifiable and unquantifiable                                                                             compound, derivative, or preparation of
                                                                                                          expenditure by State, local, and tribal
                                                  variables that potentially could                                                                              opium or opiate excluding
                                                                                                          governments, in the aggregate, or by the
                                                  influence handling of naldemedine, the                                                                        apomorphine, thebaine-derived
                                                                                                          private sector, of $100,000,000 or more
                                                  DEA is unable to determine the number                                                                         butorphanol, dextrorphan, nalbuphine,
                                                                                                          (adjusted for inflation) in any one year
                                                  of entities and small entities which                                                                          naldemedine, nalmefene, naloxegol,
                                                                                                          * * *.’’ Therefore, neither a Small
                                                  might handle naldemedine. However,                                                                            naloxone, and naltrexone, and their
                                                                                                          Government Agency Plan nor any other
                                                  the DEA estimates that all persons who                                                                        respective salts, but including the
                                                                                                          action is required under UMRA of 1995.
                                                  handle, or propose to handle                                                                                  following:
                                                  naldemedine, are currently registered                   Paperwork Reduction Act                               *     *    *      *     *
                                                  with the DEA to handle controlled                         This action does not impose a new
                                                  substances. Therefore, the 1.7 million                                                                          Dated: September 22, 2017.
                                                                                                          collection of information requirement
                                                  (1,683,023 as of April 2017) controlled                                                                       Chuck Rosenberg,
                                                                                                          under the Paperwork Reduction Act, 44
                                                  substance registrations, representing                   U.S.C. 3501–3521. This action would                   Acting Administrator.
                                                  approximately 436,761 entities, would                   not impose recordkeeping or reporting                 [FR Doc. 2017–20919 Filed 9–28–17; 8:45 am]
                                                  be the maximum number of entities                       requirements on State or local                        BILLING CODE 4410–09–P
                                                  affected by this rule. The DEA estimates                governments, individuals, businesses, or
                                                  that 425,856 (97.5%) of 436,761 affected                organizations. An agency may not
                                                  entities are ‘‘small entities’’ in                      conduct or sponsor, and a person is not               DEPARTMENT OF DEFENSE
                                                  accordance with the RFA and Small                       required to respond to, a collection of
                                                  Business Administration size standards.                 information unless it displays a                      Office of the Secretary
                                                     The DEA estimates all controlled                     currently valid OMB control number.
                                                  substance registrants handle both                                                                             32 CFR Part 199
                                                  controlled and non-controlled                           Congressional Review Act
                                                                                                                                                                [Docket ID: DOD–2017–HA–0039]
                                                  substances and these registrants are                      This rule is not a major rule as
                                                  expected to continue to handle                          defined by section 804 of the Small                   RIN 0720–AB70
                                                  naldemedine. Additionally, since                        Business Regulatory Enforcement
                                                  prospective naldemedine handlers are                    Fairness Act of 1996 (Congressional                   Establishment of TRICARE Select and
                                                  likely to handle other controlled                       Review Act (CRA)). This rule will not                 Other TRICARE Reforms
                                                  substances, the cost benefits they would                result in: An annual effect on the                    AGENCY:  Office of the Secretary,
                                                  receive as a result of the de-control of                economy of $100,000,000 or more; a                    Department of Defense (DoD).
                                                  naldemedine is minimal. As                              major increase in costs or prices for                 ACTION: Interim final rule.
                                                  naldemedine handlers continue to                        consumers, individual industries,
                                                  handle other controlled substances, they                Federal, State, or local government                   SUMMARY:   This interim final rule
                                                  will need to maintain their DEA                         agencies, or geographic regions; or                   implements the primary features of
                                                  registration and keep the same security                 significant adverse effects on                        section 701 and partially implements
                                                  and recordkeeping processes,                            competition, employment, investment,                  several other sections of the National
                                                  equipment, and facilities in place and                  productivity, innovation, or on the                   Defense Authorization Act for Fiscal
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                                                  would experience only minimal                           ability of United States-based                        Year 2017 (NDAA–17). The law makes
                                                  reduction in security, inventory,                       enterprises to compete with foreign                   significant changes to the TRICARE
                                                  recordkeeping, and labeling costs.                      based enterprises in domestic and                     program, especially to the health
                                                  Physical security control requirements                  export markets. However, pursuant to                  maintenance organization (HMO)-like
                                                  are the same for controlled substances                  the CRA, the DEA has submitted a copy                 health plan, known as TRICARE Prime;
                                                  listed in schedules II, III, IV, and V for              of this final rule to both Houses of                  to the preferred provider organization
                                                  the vast majority of registrants                        Congress and to the Comptroller                       (PPO) health plan, previously called
                                                  (practitioners).                                        General.                                              TRICARE Extra which is to be replaced


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                      45439

                                                  by TRICARE Select; and to the third                     geographical coverage for the TRICARE                    ➢ Promotion of high value services
                                                  health care option, known as TRICARE                    Select provider network, reduced                      and medications, telehealth services,
                                                  Standard, which will be terminated as                   administrative hurdles for TRICARE                    preventive health care, and healthy
                                                  of December 31, 2017, and also replaced                 Prime enrollees to obtain urgent care                 lifestyles.
                                                  by TRICARE Select. The statute also                     services and specialty care referrals, and               ➢ A new design for the health care
                                                  adopts a new health plan enrollment                     promotion of high value services and                  enrollment system, including
                                                  system under TRICARE and new                            medications. The goal of better health is             mandatory enrollment to maintain
                                                  provisions for access to care, high value               advanced by expanding TRICARE                         TRICARE coverage, an annual open
                                                  services, preventive care, and healthy                  coverage of preventive care services,                 season enrollment period, and hassle-
                                                  lifestyles. In implementing the statutory               treatment of obesity, high-value care,                free enrollment procedures.
                                                  changes, this interim final rule makes a                and telehealth. And the aim of lower                     ➢ Other features include preservation
                                                  number of improvements to TRICARE.                      cost is furthered by refining cost-benefit            of benefits for active duty dependents
                                                  DATES: This interim final rule is                       assessments for TRICARE plan                          and TRICARE-for-Life beneficiaries, and
                                                  effective October 1, 2017. Comments                     specifications that remain under DoD’s                changes to the TRICARE Young Adult
                                                  will be received by November 28, 2017.                  discretion and adding flexibilities to                (TYA), TRICARE Reserve Select (TRS),
                                                                                                          incentivize high-value health care                    TRICARE Retired Reserve (TRR),
                                                  ADDRESSES: You may submit comments,
                                                                                                          services.                                             Continued Health Care Benefit Program
                                                  identified by docket number and title,
                                                  by any of the following methods:                        B. Legal Authority for the Regulatory                 (CHCBP), and TRICARE Retiree Dental
                                                     • Federal eRulemaking Portal: http://                Action                                                Program (TRDP) to conform with new
                                                  www.regulations.gov. Follow the                                                                               statutory requirements.
                                                                                                            This interim final rule is required to
                                                  instructions for submitting comments.                   implement or partially implement                      II. Provisions of Interim Final Rule
                                                     • Mail: Department of Defense, Office                several sections of NDAA–17, including
                                                  of the Deputy Chief Management                                                                                A. Establishment of TRICARE Select
                                                                                                          701, 706, 715, 718, and 729. The legal
                                                  Officer, Directorate for Oversight and                  authority for this rule also includes                    The rule implements the new law
                                                  Compliance, Regulatory and Advisory                     chapter 55 of title 10, United States                 (section 701 of NDAA–17) that
                                                  Committee Division, 4800 Mark Center                    Code.                                                 establishes TRICARE Select as a self-
                                                  Drive, Mailbox #24, Suite 08D09B,                                                                             managed, PPO program. It allows
                                                  Alexandria, VA 22350–1700.                              C. Summary of Major Provisions of the                 beneficiaries to use the TRICARE
                                                     Instructions: All submissions received               Interim Final Rule                                    civilian provider network, with reduced
                                                  must include the agency name, docket                       The major provisions of the interim                out-of-pocket costs compared to care
                                                  number, or title for this Federal Register              final rule are:                                       from non-network providers, as well as
                                                  document. The general policy for                           ➢ The establishment of TRICARE                     military treatment facilities (when space
                                                  comments and other submissions from                     Select as a self-managed, PPO option                  is available). Similar to the long-
                                                  members of the public is to make these                  under the TRICARE program. TRICARE                    operating ‘‘TRICARE Extra’’ and
                                                  submissions available for public                        Select replaces the TRICARE Extra and                 ‘‘TRICARE Standard’’ plans, which
                                                  viewing on the Internet at http://                      Standard programs and adopts a number                 TRICARE Select replaces, a major
                                                  www.regulations.gov as they are                         of improvements, including fixed                      feature is that enrollees will not have
                                                  received without change, including any                  copayments rather than cost shares for                restrictions on their freedom of choice
                                                  personal identifiers or contact                         covered benefits provided by a civilian               with respect to health care providers.
                                                  information.                                            network provider. TRICARE Select                      TRICARE Select is based primarily on
                                                  FOR FURTHER INFORMATION CONTACT:   Mr.                  beneficiaries can choose any provider                 10 U.S.C. 1075 (as added by section 701
                                                  Mark Ellis, Defense Health Agency,                      for their healthcare; however, they will              of NDAA–17) and 10 U.S.C. 1097. With
                                                  TRICARE Health Plan, (703) 681–0063.                    enjoy lower out-of-pocket costs if they               respect to beneficiary cost sharing, the
                                                                                                          choose preferred providers within the                 statute introduces a new split of
                                                  SUPPLEMENTARY INFORMATION:
                                                                                                          TRICARE civilian network.                             beneficiaries into two groups: One
                                                  I. Executive Summary                                       ➢ The continuation of TRICARE                      group (which the rule refers to as
                                                                                                          Prime as a managed care, HMO-like                     ‘‘Group A’’) consists of sponsors and
                                                  A. Purpose of the Interim Final Rule                                                                          their family members who first became
                                                                                                          option under the TRICARE program.
                                                     In implementing section 701 and                      TRICARE Prime adopts a number of                      affiliated with the military through
                                                  partially implementing several other                    changes to conform to specifications in               enlistment or appointment before
                                                  sections of NDAA–17, this interim final                 the new law, including categories of                  January 1, 2018, and the second group
                                                  rule advances all four components of                    health care services applicable to the                (referred to as ‘‘Group B’’) who first
                                                  the Military Health System’s quadruple                  determination of copayment amounts                    became affiliated on or after January 1,
                                                  aim of improved readiness, better care,                 (such as primary care, specialty care,                2018. In general, beneficiary out-of-
                                                  better health, and lower cost. The aim                  emergency care).                                      pocket costs for Group B are higher than
                                                  of improved readiness is served by                         ➢ Improved access to care, including               for Group A.
                                                  reinforcing the vital role of the                       a codified requirement that the                          In addition to implementing the
                                                  TRICARE Prime health plan to refer                      TRICARE Select health care plan is                    statutory specifications, the interim
                                                  patients, particularly those needing                    available in all locations and at least               final rule also makes improvements for
                                                  specialty care, to military medical                     85% of the U.S. beneficiary TRICARE                   TRICARE Select Group A enrollees,
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                                                  treatment facilities (MTFs) in order to                 Select population is covered by the                   compared to the features of the old
                                                  ensure that military health care                        TRICARE network. Also, for TRICARE                    TRICARE Extra plan. One such
                                                  providers maintain clinical currency                    Prime enrollees, there are new                        improvement is to convert the current
                                                  and proficiency in their professional                   procedures to ensure timely                           cost-sharing requirement of 15% for
                                                  fields. The objective of better care is                 appointments for health care services                 active duty family members and 20%
                                                  enhanced by a number of improvements                    and to authorize some or all urgent care              for retirees and their family members of
                                                  in beneficiary access to health care                    visits without the need for referral from             the allowable charge for care from a
                                                  services, including increased                           a primary care manager.                               network provider to a fixed dollar


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                                                  45440            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  copayment calculated to approximately                   families as established under 10 U.S.C.               uses Standard/Extra will cost DoD about
                                                  equal 15% or 20% of the average                         1079(b) and $3,000 for survivors of                   $12,700.’’ 1
                                                  allowable charge for the category of care               members who died while on active duty                    Based on the TRICARE Prime cost
                                                  involved. Consistent with prevailing                    or disability retiree families as                     neutrality provision in NDAA–1994, the
                                                  private sector health program practices,                established under 10 U.S.C. 1086(b).                  original 1995 TRICARE Prime regulation
                                                  the fixed dollar copayment is more                                                                            included (at 32 CFR 199.18(g)) that cost
                                                  predictable for the patient and easier for              B. Continuation of TRICARE Prime
                                                                                                                                                                sharing requirements ‘‘may be updated
                                                  the network health care provider to                        A second major feature of this interim             for subsequent years to the extent
                                                  administer. The breakdown of categories                 final rule, based primarily on 10 U.S.C.              necessary to maintain compliance with
                                                  of care (such as outpatient primary care                1075a (also added by section 701 of                   statutory requirements pertaining to
                                                  visit, specialty care visit, emergency                  NDAA–17), is the continuation of                      government costs.’’ Since NDAA–1994,
                                                  room visit, etc.) contained in the rule is              TRICARE Prime as a managed care,                      Congress took away DoD’s discretion for
                                                  the same as the categories now specified                HMO-like program. It generally features               enrollment fee increases, which are now
                                                  in the statute for Group B Select                       use of military treatment facilities                  tied by law to the retired pay COLA.
                                                  enrollees.                                              (MTFs) and substantially reduced out-                 However, DoD continues to have
                                                     A second improvement in TRICARE                      of-pocket costs for authorized care                   discretion to update copayment
                                                  Select (for both Group A and Group B)                   provided outside MTFs. Beneficiaries                  amounts—which have not changed
                                                  is that additional preventive care                      generally agree to use military treatment             since 1995—and this discretion is
                                                  services that previously were only                      facilities and designated civilian                    confirmed by the newly enacted 10
                                                  offered to TRICARE Prime beneficiaries                  provider networks and to follow certain               U.S.C. 1075a(a)(3).
                                                  will now (under the authority of 10                     managed care rules and procedures.
                                                  U.S.C. 1097 and NDAA–17) also be                        Like with TRICARE Select, with respect                   This discretion to update copayment
                                                  covered for Select enrollees when                       to beneficiary cost sharing, the statute              amounts is continued in the interim
                                                  furnished by a network health care                      introduces a new split of beneficiaries               final rule, but the framework for setting
                                                  provider. These are services                            into two groups (again referred to in the             Prime Group A copayment amounts is
                                                  recommended by the United States                        rule as Group A and Group B) based on                 being revised. Specifically, DoD is
                                                  Preventive Services Task Force and the                  the military sponsor’s initial enlistment             adopting for Group A the same structure
                                                  Health Resources and Services                           or appointment before January 1, 2018                 of categories of care that Congress
                                                  Administration of the Department of                     (Group A), or on or after that date                   adopted for Group B. Thus, for example,
                                                  Health and Human Services.                              (Group B). Beneficiary cost sharing for               while the current TRICARE Prime
                                                     These improvements are based partly                  Group B is slightly higher than for                   copayment amount makes no
                                                  on the statutory provision (10 U.S.C.                   Group A.                                              distinction between primary care and
                                                  1075(c)(2)) that Group A Select enrollee                                                                      specialty care services, the new Group
                                                                                                             As with TRICARE Select, the cost
                                                  cost-sharing requirements are calculated                                                                      B structure under the statute does have
                                                                                                          sharing specifications for TRICARE
                                                  as if TRICARE Extra were still being                                                                          a different copayment for primary care
                                                                                                          Prime Group B are set forth in the
                                                  carried out by DoD. TRICARE Extra                                                                             and specialty care. Under the rule,
                                                                                                          statute, and those for Group A are
                                                  specifications are based on the                                                                               copayment amounts for Group A
                                                                                                          calculated in accordance with other
                                                  underlying authority of 10 U.S.C. 1097,                                                                       beneficiaries will be set for each of those
                                                                                                          health care provisions of title 10 (rather
                                                  which allows DoD to adopt special rules                                                                       categories, as well as the other
                                                                                                          than the new section 1075a). The
                                                  for the PPO plan. This statute was the                                                                        categories of care the statute now
                                                                                                          primary original statutory authority for
                                                  basis for the original set of rules for                                                                       specifies for Group B enrollees. The
                                                                                                          the TRICARE Prime health plan,
                                                  TRICARE Extra, which were adopted in                                                                          interim final rule does not specify the
                                                  1995, and is the authority for these                    established by DoD regulation in 1995,
                                                                                                                                                                amount for each category of care.
                                                  improved rules for TRICARE Select                       was 10 U.S.C. 1097, and this continues
                                                                                                                                                                Rather, consistent with DoD’s discretion
                                                  Group A, adopted as if TRICARE Extra                    to be relied upon for the continued
                                                                                                                                                                under current statute and regulation, the
                                                  were still being carried out by DoD.                    operation of TRICARE Prime for Group
                                                                                                                                                                actual amount will be set each year
                                                     Under the interim final rule, the cost               A. Also relevant to the original terms of
                                                                                                                                                                prior to open season enrollment. The
                                                  sharing rules applicable to TRICARE                     TRICARE Prime was section 731 of the
                                                                                                                                                                interim final rule does, however, specify
                                                  Select Group B are those specified in 10                National Defense Authorization Act for
                                                                                                                                                                that the amount for each category of care
                                                  U.S.C. 1075. For TRICARE Select Group                   Fiscal Year 1994. That law required DoD
                                                                                                                                                                for Group A enrollees may not exceed
                                                  A, in addition to the copayment rules                   to include, to the maximum extent
                                                                                                                                                                the amount that Congress set for Group
                                                  noted above, consistent with 10 U.S.C.                  practicable, the HMO-like option under
                                                                                                                                                                B enrollees. In this way, the Prime
                                                  1075, an enrollment fee of $150 per                     TRICARE. That law also required that
                                                                                                                                                                copay structure would be in alignment
                                                  person or $300 per family will begin                    the HMO-like option ‘‘shall be
                                                                                                                                                                with proposed legislative changes
                                                  January 1, 2021, for most retiree                       administered so that the costs incurred
                                                                                                                                                                recommended by the Department to
                                                  families, with annual updates thereafter                by the Secretary under the TRICARE
                                                                                                                                                                Congress for enactment this year to
                                                  based on the cost of living adjustment                  program are no greater than the costs
                                                                                                                                                                eliminate the ‘‘grandfathering’’ of Group
                                                  (COLA) applied to retired pay. At the                   that would otherwise be incurred’’, to
                                                                                                                                                                A retiree families and return to a single
                                                  same time, the catastrophic cap will                    provide health care to beneficiaries. The
                                                                                                                                                                TRICARE Prime model for all working-
                                                  increase from $3,000 to $3,500 for these                extent to which this ‘‘cost neutrality’’
                                                                                                                                                                age retiree families. Again, it should be
                                                  retiree families. These changes,                        requirement has not been maintained
                                                                                                                                                                noted that this applies only to per-
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                                                  however, will not apply to TRICARE                      was recently highlighted by the
                                                                                                                                                                service copayments; enrollment fee
                                                  Select Group A active duty families,                    Congressional Budget Office: ‘‘CBO
                                                                                                                                                                increases for Group A enrollees will
                                                  survivors of members who died while                     estimates that under current law, a
                                                                                                                                                                continue to be based on the retired pay
                                                  on active duty, or disability retiree                   typical retiree household enrolled in
                                                                                                                                                                COLA.
                                                  families; that is, no enrollment fee will               TRICARE Prime as a ‘family’ in 2018,
                                                  be applicable to this group and the                     and for whom TRICARE is the primary                     1 Congressional Budget Office Cost Estimate, S.
                                                  applicable catastrophic cap will                        payer of health benefits, will cost DoD               2943, National Defense Authorization Act for Fiscal
                                                  continue to be $1,000 for active duty                   about $17,400, and a typical family that              Year 2017, June 10, 2016, page 17.



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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                        45441

                                                     The interim final rule also continues                supports the conclusion that it is                    be determined annually prior to the
                                                  the point-of-service provision of the                   practicable to offer TRICARE Prime in                 beginning of the open season enrollment
                                                  current TRICARE Prime plan. Any                         areas where it supports the medical                   period.
                                                  health care services obtained by a Prime                readiness of one or more MTFs.                           A fourth access to care improvement
                                                  enrollee not in accordance with the                     Additionally, where TRICARE Prime is                  is adoption of the new statutory
                                                  rules and procedures of Prime (e.g.                     offered, it may be limited to active duty             provision that a primary care manager
                                                  failure to obtain a primary care manager                family members if the Director, DHA                   who believes a referral to a specialty
                                                  referral when such a referral is required               determines it is not practicable to offer             care network provider is medically
                                                  or seeing a non-network provider when                   TRICARE Prime to retired beneficiaries                necessary and appropriate need not
                                                  a network provider is available) will not               as well—a determination that again                    obtain pre-authorization from the
                                                  be paid for under Prime rules, but may                  would take into account the nature of                 managed care support contractor.
                                                  be covered by the point-of-service                      the supported MTF and the range of                    Managed care support contractor
                                                  option. This results in higher cost                     services it offers.                                   preauthorization is only required with
                                                  sharing—specifically, a deductible of                                                                         respect to a primary care manager’s
                                                                                                          C. Improved Access to Care
                                                  $300 per person and $600 per family,                                                                          referral for inpatient hospitalization,
                                                  and a copayment of 50 percent of the                       A third significant change in the                  inpatient care at a skilled nursing
                                                  allowable charges after the deductible.                 interim final rule is a set of                        facility, inpatient care at a residential
                                                  Point-of-service charges do not count                   improvements in standards for access to               treatment center and inpatient care at a
                                                  against the annual catastrophic cap.                    care. The TRICARE Select plan replaces                rehabilitation facility.
                                                  These point-of-service rules continue for               TRICARE Standard as the generally
                                                  TRICARE Prime Group A and are also                      applicable plan in all areas. Under                   D. Promotion of High Value Services
                                                  applicable to Group B. For Group B, the                 TRICARE Select, eligible beneficiaries                and Medications and Telehealth
                                                  rules for point-of-service charges are                  can choose any provider for their                     Services
                                                  specified in 10 U.S.C. 1075a(c), which                  healthcare, and they will enjoy lower
                                                                                                                                                                   In addition to the expansion noted
                                                  clarifies that point-of-service cost                    out-of-pocket costs if they choose
                                                                                                                                                                above concerning preventive care
                                                  sharing is ‘‘notwithstanding’’ the usual                providers within the TRICARE civilian
                                                                                                                                                                services, the interim final rule makes a
                                                  cost sharing rules of Prime Group B                     network. The vast majority of TRICARE
                                                                                                                                                                number of other improvements in
                                                  enrollees.                                              beneficiaries located in the United
                                                                                                                                                                TRICARE Prime and TRICARE Select
                                                     One other matter on which the                        States will have access to TRICARE
                                                                                                          network providers (it is DoD’s plan that              based on provisions of sections 701(h),
                                                  interim final rule preserves DoD
                                                                                                          at least 85% of the U.S. beneficiary                  706, 718, and 729 of NDAA–17. Section
                                                  discretion, similar to that in the current
                                                                                                          population under TRICARE Select will                  701(h), among other things, provides for
                                                  regulation, is with respect to the
                                                                                                          be covered by the network upon                        a four-year pilot program to encourage
                                                  locations where TRICARE Prime is
                                                                                                          implementation), similar to the current               use by patients of high value services
                                                  offered. This is noted in the current
                                                                                                          TRICARE Extra option, but with the                    and medications. Section 706, among
                                                  regulation at 32 CFR 199.17(a)(5). Under
                                                                                                          benefit of predictable fixed dollar                   other things, authorizes special
                                                  the interim final rule, the locations
                                                                                                          copayments. In cases in which a                       arrangements with provider groups that
                                                  where TRICARE Prime will be offered
                                                                                                          network provider is not available to a                will improve population-based health
                                                  will be determined by the Director,
                                                                                                          TRICARE Select enrollee, such as in                   outcomes and focus more on preventive
                                                  Defense Health Agency (DHA) and
                                                  announced prior to the annual open                      remote locations where there are very                 care. Section 729 calls for special
                                                  season enrollment period. The guiding                   few primary or specialty providers,                   actions to incentivize medical
                                                  principle for this decision is that the                 enrollees will still have access to any               intervention programs to address
                                                  purpose of TRICARE Prime is to support                  TRICARE authorized provider, with cost                chronic diseases and other conditions
                                                  the medical readiness of the armed                      sharing comparable to the current                     and healthy lifestyle interventions.
                                                  forces and the readiness of medical                     TRICARE Standard plan (i.e. 25% for                   Section 718, among other things,
                                                  personnel. Codification in regulation of                retired category beneficiaries).                      requires actions to promote greater use
                                                  this guiding principle is a corollary to                   A second interim final rule                        of telehealth services under TRICARE.
                                                  the codification by Congress in statute,                enhancement for access to care is that if             While these sections of NDAA–17 also
                                                  specifically sections 703 and 725 of                    a TRICARE Prime enrollee seeks to                     require actions outside the scope of this
                                                  NDAA–17 that MTFs exist to support                      obtain an appointment for care from the               interim final rule (such as contracting
                                                  the medical readiness of the armed                      managed care support contractor but is                actions) they can be partially
                                                  forces and the readiness of medical                     not offered an appointment within the                 implemented, consistent with
                                                  personnel.                                              applicable access time standards from a               Congressional intent, in this rule. The
                                                     TRICARE Prime, especially for                        network provider, the enrollee will be                interim final rule does this in several
                                                  working age retirees and family                         authorized to receive care from any                   ways.
                                                  members, provides MTFs clinical                         authorized provider without incurring                    First, the interim final rule authorizes
                                                  workload, including for a range of                      the additional fees associated with                   coverage under TRICARE Prime and
                                                  medical specialty areas that permit                     point-of-service care.                                TRICARE Select for medically necessary
                                                  military health care providers to                          A third access to care improvement                 treatment of obesity even if it is the sole
                                                  maintain currency and proficiency in                    under the interim final rule is that the              or major condition treated. Under 10
                                                  their respective clinical fields. This                  TRICARE Prime referral requirement                    U.S.C. 1079(a)(10), this is disallowed
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                                                  important support of a ready medical                    may be waived for urgent care visits for              under the basic program. However, it is
                                                  force is what justifies the higher                      Prime enrollees other than active duty                DoD’s conclusion that the underlying
                                                  government cost of Prime (which CBO                     members. This is similar to the current               authority of 10 U.S.C. 1097, together
                                                  estimates at $17,400 per retiree family),               pilot program, which waives the referral              with section 729 of NDAA–17 (which
                                                  notwithstanding the original statutory                  requirement (other than for active duty               specifically authorizes medical
                                                  requirement of cost neutrality between                  members) for up to two urgent care                    intervention for obesity), allow the
                                                  TRICARE Prime and TRICARE                               visits per year. The specific number of               Department to cover these services
                                                  Standard. This cost-benefit assessment                  urgent care visits without a referral will            when provided by a network provider


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                                                  45442            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  for a TRICARE Prime or TRICARE Select                   each plan year, which operates with the               who is not part of the TRICARE
                                                  enrollee.                                               calendar year. An enrollment choice                   provider network, that care is covered
                                                     Second, the interim final rule codifies              will be effective for the plan year. As an            by TRICARE as ‘‘out-of-network’’ care
                                                  authority of the Director, DHA to waive                 exception to the open season enrollment               under terms that match the old
                                                  or reduce copayment requirements for                    rule, enrollment changes can be made                  TRICARE Standard plan. Third, in order
                                                  TRICARE Prime and TRICARE Select                        during the plan year for certain                      to transition enrollment fees,
                                                  enrollees for care received from network                qualifying events, such as a change in                deductibles, and catastrophic caps from
                                                  providers for certain health care services              eligibility status, marriage, divorce,                a fiscal year basis to a calendar year
                                                  that provide especially high value in                   birth of a new family member,                         basis, special rules apply for the last
                                                  terms of better health outcomes for                     relocation, loss of other health                      quarter of calendar year 2017, including
                                                  patients. Authority for this includes                   insurance, or other events.                           that a Prime enrollee’s enrollment fee
                                                  section 706 and 729 of NDAA–17. This                       Eligible Prime or Select beneficiaries             for the quarter is one-fourth of the
                                                  is also consistent with the four-year                   who do not enroll will no longer have                 enrollment fee for fiscal year 2017, and
                                                  pilot program authority of section                      private sector care coverage under the                the deductible amount and the
                                                  701(h), but does not necessarily rely on                TRICARE program (including the                        catastrophic cap amount for fiscal year
                                                  that time-limited authority. Consistent                 TRICARE retail pharmacy and mail                      2017 will be applicable to the 15-month
                                                  with the intent of these sections, the                  order pharmacy programs) until the next               period of October 1, 2016, through
                                                  Department also intends to use the                      open enrollment season or they have a                 December 31, 2017. A similar transition
                                                  authority of § 199.21(j)(3) of the                      qualifying event, except that they do not             rule will apply to TRICARE for Life,
                                                  TRICARE Pharmacy Benefits Program                       lose any statutory eligibility for space-             TYA, TRR and TRS to align remaining
                                                  section of the TRICARE regulations to                   available care in military medical                    program deductibles and/or catastrophic
                                                  encourage use of high value medications                 treatment facilities. There is a limited              caps from a fiscal year to calendar year
                                                  by reducing or eliminating the                          grace period exception to this                        basis for consistency and ease of
                                                  copayment of selected medicines.                        enrollment requirement for calendar                   administration.
                                                     Third, consistent with section 718 of                year 2018, as provided in section
                                                  NDAA–17, the interim final rule                                                                                  Additionally, the interim final rule
                                                                                                          701(d)(3) of NDAA–17, to give
                                                  provides that health care services                                                                            adopts several changes to regulatory
                                                                                                          beneficiaries another chance to adjust to
                                                  covered by TRICARE and provided                                                                               provisions applicable to the TYA, TRS,
                                                                                                          this new requirement for annual
                                                  through the use of telehealth modalities                                                                      TRR, and TRDP programs to conform
                                                                                                          enrollment. For the administrative
                                                  are covered services to the same extent                 convenience of beneficiaries, there are               with new statutory requirements. In
                                                  as if provided in person at the location                also procedures for automatic                         implementing section 701(a) of NDAA–
                                                  of the patient if those services are                    enrollment in Prime and Select for most               17, together with section 701(j)(1)(F),
                                                  medically necessary and appropriate for                 active duty family members, and                       the rule conforms the TYA regulation to
                                                  such modalities. The Director, DHA will                 automatic renewal of enrollments of                   the statutory language which
                                                  establish standardized payment                          covered beneficiaries, subject to the                 established the eligibility of TYA under
                                                  methods to reimburse for such services,                 opportunity to decline or cancel.                     10 U.S.C. 1110b to enroll in TRICARE
                                                  and shall reduce or eliminate, as                          Due to a compressed implementation                 Select and provided that the TYA
                                                  appropriate, beneficiary copayments or                  schedule that precludes an annual open                premium shall apply instead of the
                                                  cost-shares for such services in cases in               season enrollment period in calendar                  otherwise applicable TRICARE Prime or
                                                  which a copayment would otherwise                       year 2017 for existing TRICARE                        Select enrollment fee. In implementing
                                                  apply. This may be done by designating                  beneficiaries to elect or change their                section 701(j)(1)(B), the rule conforms
                                                  some telehealth services as high value                  TRICARE coverage, the Department will                 the TRICARE Reserve Select plan
                                                  services for which lower copays apply                   convert existing TRICARE Standard                     regulation to the statutory language
                                                  as well as the elimination of any                       coverage to TRICARE Select coverage                   which defines ‘‘TRICARE Reserve
                                                  beneficiary cost-sharing related to                     effective January 1, 2018. All other                  Select’’ as the TRICARE Select self-
                                                  originating site fees when used to                      existing TRICARE coverages will be                    managed, preferred-provider network
                                                  support the provision of telehealth                     renewed effective January 1, 2018. As                 option under 10 U.S.C. 1075 made
                                                  services.                                               noted previously, beneficiaries may                   available to beneficiaries under 10
                                                                                                          elect to change their TRICARE coverage                U.S.C. 1076d and requires payment of a
                                                  E. Changes to Health Plan Enrollment                                                                          premium for coverage instead of the
                                                                                                          anytime during the limited grace period
                                                  System                                                                                                        TRICARE Select enrollment fee. In
                                                                                                          in calendar year 2018.
                                                     A fourth major change in the interim                                                                       implementing section 701(j)(1)(C), the
                                                  final rule is its implementation of the                 F. Additional Provisions of Interim Final             rule conforms the TRICARE Retired
                                                  new statutory design for the health care                Rule                                                  Reserve plan regulation to the statutory
                                                  enrollment system. Starting in calendar                   The interim final rule has several                  language which defines ‘‘TRICARE
                                                  year 2018, beneficiaries other than                     other noteworthy provisions. First, there             Retired Reserve’’ as the TRICARE Select
                                                  active duty members and TRICARE-for-                    are no changes in benefits for TRICARE-               self-managed, preferred-provider
                                                  Life beneficiaries must elect to enroll in              for-Life beneficiaries, or generally in               network option under 10 U.S.C. 1075
                                                  TRICARE Select or TRICARE Prime in                      cost sharing levels for active duty family            made available to beneficiaries under 10
                                                  order to be covered by the private sector               members. Second, although ‘‘TRICARE                   U.S.C. 1076e and requires payment of a
                                                  care portion of TRICARE. While                          Standard’’ is terminated as a distinct                premium for coverage instead of the
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                                                  TRICARE-for-Life beneficiaries under                    TRICARE plan as of December 31, 2017,                 TRICARE Select enrollment fee. In
                                                  the age of 65 are permitted to enroll in                basic program benefits (as established                implementing section 701(a) and 701(e),
                                                  TRICARE Prime under limited                             under 32 CFR 199.4) continue under                    the rule conforms the CHCBP regulation
                                                  circumstances, their failure to enroll                  both TRICARE Prime and TRICARE                        to replace TRICARE Standard with
                                                  will not affect their coverage by the                   Select. In addition, when a TRICARE                   TRICARE Select as the continuation
                                                  private sector care portion of TRICARE.                 Select beneficiary receives services                  health care benefit for Department of
                                                  Enrollment will be done during an open                  covered by the basic program benefits                 Defense and the other uniformed
                                                  season period prior to the beginning of                 from an authorized health care provider               services beneficiaries losing eligibility.


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                        45443

                                                  In implementing section 715, the rule                   Defense Authorization Act for Fiscal                  established by the Director, DHA and
                                                  conforms the TRDP regulation to the                     Year 2016.                                            published annually.
                                                  statutory language which authorizes an                     Finally, the interim final rule includes              ➢ For services designated as ‘‘IN’’, the
                                                  interagency agreement between the                       authority for the Director, DHA to                    listed fee is for covered services or
                                                  Department of Defense and the Office of                 establish preferred provider networks in              supplies obtained ‘‘in-network,’’
                                                  Personnel Management to allow                           areas outside the United States where it              meaning received from TRICARE
                                                  beneficiaries otherwise eligible for the                is determined to be economically in the               authorized network providers.
                                                  TRDP to enroll in a dental insurance                    best interests of the Department of                      ➢ For TRICARE Prime beneficiaries,
                                                  plan offered under the Federal                          Defense. As a result of the TRICARE                   if covered services or supplies are not
                                                  Employees Dental and Vision Insurance                   Philippines Demonstration Project,                    obtained in accordance with the rules
                                                  Program. Under the statute, TRDP                        which commenced in January 1, 2013,                   and procedures of Prime (e.g., failure to
                                                  beneficiaries will have the opportunity                 the Department has determined that the                obtain a required referral or
                                                  to access a dental plan with                            TRICARE contracted preferred provider                 unauthorized use of a non-network
                                                  significantly higher annual maximum                     network established in designated                     provider), the services or supplies will
                                                  benefit and a lower premium cost than                   locations in the Philippines provided                 be reimbursed under a point-of-service
                                                  available under the current TRDP, while                 adequate access to beneficiaries with 97              option for which there is a deductible of
                                                  giving the Department an opportunity to                 percent of care delivered by network                  $300 per person or $600 per family and
                                                  eliminate costs associated with                         providers. It also successfully achieved              a cost share of 50 percent of the
                                                  procuring and administering a separate                  the demonstration goals of reducing                   allowable charges after the deductible.
                                                  TRDP contract.                                          aberrant billing activities, reduced out-                ➢ For services designated as ‘‘OON’’,
                                                     Also, the interim final rule adopts                  of-pocket expenses for beneficiaries, and             the listed fee for TRICARE Select
                                                  several changes to regulatory provisions                increased overall beneficiary                         beneficiaries is for covered services or
                                                  applicable to benefit coverage of                       satisfaction while leading to a net                   supplies obtained ‘‘out-of-network’’,
                                                  medically necessary food and vitamins.                  savings to the government. Although the               meaning received from non-network
                                                  Section 714 of NDAA–17 confirms long-                   demonstration was projected to                        TRICARE authorized providers.
                                                  standing TRICARE policy authorizing                     continue through December 31, 2018,                      ➢ Certain preventive services have no
                                                  benefit coverage of medically necessary                 the Philippines preferred provider                    cost sharing whether received from
                                                  vitamins when prescribed for                            network is determined to be                           network or non-network providers.
                                                  management of a covered disease or                      economically in the interests of the                  However, certain preventive services are
                                                  condition. In addition, while section                   Department of Defense and the                         not covered services for TRICARE Prime
                                                  714 confirms long-standing TRICARE                      demonstration shall terminate effective               or Select beneficiaries unless obtained
                                                  policy authorizing medical nutritional                  December 31, 2017, with transition of                 from network providers. Additionally,
                                                  therapy coverage of medically necessary                 the demonstration’s approved preferred                TRICARE Prime beneficiaries are
                                                  food and medical equipment/supplies                     provider network to a TRICARE Select                  required to obtain services in
                                                  necessary to administer such food when                  preferred provider network effective                  accordance with the rules and
                                                  prescribed for dietary management of a                  January 1, 2018.                                      procedures of Prime to avoid point-of-
                                                  covered disease or condition, the law                                                                         service charges.
                                                                                                          G. Recap: Cost Sharing Tables
                                                  also allows the medically necessary                                                                              ➢ Enrollment fees and deductibles
                                                  food benefit to include coverage of low                    The following two tables summarize                 are listed in the tables as individual/
                                                  protein modified foods. Consistent with                 beneficiary fees (including enrollment                family, indicating the dollar amounts
                                                  this we also recognize the role of                      fees, deductibles, cost sharing amounts,              applicable per individual or per family.
                                                  Nutritionists and Registered Dieticians                 and catastrophic loss protection limits)                 ➢ The criteria for fees associated with
                                                  in the appropriate planning for the use                 under TRICARE Select and TRICARE                      High Value Primary Care Outpatient
                                                  of medically necessary foods.                           Prime for calendar year 2018. For future              Care and High Value Specialty
                                                     Additionally, the interim final rule                 calendar years, all fees are subject to               Outpatient Care are under development
                                                  adopts several conforming changes to                    review and annual updating in                         but will be designed to encourage
                                                  regulatory provisions applicable to                     accordance with sections 1075, 1075a,                 beneficiaries to receive health care
                                                  general TRICARE administration, the                     and 1097 of title 10, United States Code.             services from high-value providers as
                                                  TRICARE Pharmacy Benefits Program                       Table 1 is for active duty family                     highlighted in the contractor’s network
                                                  and the Extended Health Care Option to                  members (ADFMs); Table 2 is for retiree               provider directory. When finalized, the
                                                  reflect transition of deductibles,                      families. As a guide for understanding                fees will be made available at
                                                  catastrophic caps, and program                          the tables:                                           www.health.mil/rates.
                                                  reimbursement limitations, as                              ➢ For services listed as ‘‘to be                      ➢ Inpatient subsistence refers to the
                                                  applicable, from a fiscal year basis to a               determined (TBD)’’, the Director, DHA                 rate charged for inpatient care obtained
                                                  calendar year basis for consistency and                 will ensure the applicable fee for                    in a military treatment facility.
                                                  ease of administration. Simultaneously,                 calendar year 2018 will be available at                  ➢ ‘‘COLA’’ is the cost-of-living
                                                  technical corrections are being made to                 www.health.mil/rates before December                  adjustment for retired pay under 10
                                                  the TRICARE Pharmacy Benefits                           1, 2017.                                              U.S.C. 1401a by which certain fees are
                                                  Program to conform regulation                              ➢ For services not specifically                    required to be annually indexed.
                                                  provisions to statutory provisions                      addressed in these tables, applicable                    ➢ ‘‘<’’ means less than; ≤ means less
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                                                  enacted by section 702 of the National                  cost-sharing requirements shall be                    than or equal to.




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                                                  45444                Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                               TABLE 1—TRICARE SELECT AND TRICARE PRIME COST SHARING FOR ACTIVE DUTY FAMILY MEMBERS
                                                                                             FOR CALENDAR YEAR 2018

                                                                                                 Select Group A ADFMs                               Select Group B ADFMs                               Prime Group A ADFMs                              Prime Group B ADFMs

                                                  Annual Enrollment ...................    $0 .............................................   $0 .............................................                                               $0                                 $0
                                                  Annual Deductible ....................   E1–E4: $50/$100; E5 & above:                       E1–E4: $50/$100; E5 & above:                                                                    0                                  0
                                                                                             $150/$300.                                         $150/$300.
                                                  Annual Catastrophic Cap .........        $1,000 ......................................      $1,000 ......................................                                             1,000                              1,000
                                                  Preventive Care Outpatient               $0 .............................................   $0 .............................................                                              0                                  0
                                                    Visit.
                                                  Primary Care Outpatient Visit ..         Fixed fee to = 15% of average                      $15 primary care IN; 20%                                                                         0                                 0
                                                                                             allowable amount IN; 20%                           OON.
                                                                                             OON.
                                                  Specialty Care Outpatient Visit          Fixed fee to = 15% of average                      $25 specialty care IN; 20%                                                                       0                                 0
                                                                                             allowable amount IN; 20%                           OON.
                                                                                             OON.
                                                  High-Value Primary Care Out-             Under Development; Less than                       Under Development; Less than                                                                     0                                 0
                                                    patient Visit.                           normal primary care amount.                        normal primary care amount.
                                                  High-Value Specialty Care                Under Development; Less than                       Under Development; Less than                                                                     0                                 0
                                                    Outpatient Visit.                        normal primary care amount.                        normal primary care amount.
                                                  Emergency Room Visit ............        Fixed fee to = 15% of average                      $40 IN; 20% OON ...................                                                              0                                 0
                                                                                             allowable amount IN; 20%
                                                                                             OON.
                                                  Urgent Care Center .................     Same as primary care out-                          $20 IN; 20% OON ...................                                                              0                                 0
                                                                                             patient amount IN; 20%
                                                                                             OON.
                                                  Ambulatory Surgery .................     $25 ...........................................    $25 IN; 20% OON ...................                                                              0                                 0
                                                  Ambulance Service (not includ-           Fixed fee to = 15% of average                      $15 IN; 20% OON ...................                                                              0                                 0
                                                   ing air).                                 allowable amount IN; 20%
                                                                                             OON.
                                                  Durable Medical Equipment ....           15% IN; 20% OON ..................                 10% IN; 20% OON ..................                                                               0                                 0
                                                  Inpatient Hospital Admission ...         Subsistence charge/day, min-                       $60/admission IN; 20% OON ..                                                                     0                                 0
                                                                                             imum $25/admission.
                                                  Inpatient Skilled Nursing/               Subsistence charge/day, min-                       $25/day IN; $50/day OON .......                                                                  0                                 0
                                                    Rehab Facility.                          imum $25/admission.


                                                    TABLE 2—TRICARE SELECT AND TRICARE PRIME COST SHARING FOR RETIREE FAMILIES FOR CALENDAR YEAR 2018
                                                                                                Select Group A Retirees                            Select Group B Retirees                            Prime Group A Retirees                           Prime Group B Retirees

                                                  Annual Enrollment ...................    $0 until 2021; $150/$300 in                        $450/$900 ................................         FY17         amount              ($282.60/         $350/$700.
                                                                                             2021 +COLA?                                                                                           $565.20) +COLA.
                                                  Annual Deductible ....................   $150/$300 ................................         $150/$300 IN; $300/$600 OON                        $0 .............................................   $0.
                                                  Annual Catastrophic Cap .........        $3,000 until 2021; $3,500 in                       $3,500 ......................................      $3,000 ......................................      $3,500.
                                                                                             2021.
                                                  Preventive Care Visit ...............    $0 .............................................   $0 .............................................   $0 .............................................   $0.
                                                  Primary Care Outpatient Visit ..         Fixed fee that = 20% of aver-                      $25 primary IN; 25% OON ......                     TBD, ≤$20 primary ..................               $20 primary.
                                                                                             age allowable amount IN;
                                                                                             25% OON.
                                                  Specialty Care Outpatient Visit          Fixed fee that = 20% of aver-                      $40 specialty IN; 25% OON ....                     TBD, ≤$30 specialty ................               $30 specialty.
                                                                                             age allowable amount IN;
                                                                                             25% OON.
                                                  High Value Primary Care OP               Under Development; <normal                         Under Development; <normal                         Under Development; <normal                         Under Development; <normal
                                                    Visit.                                   primary care amount.                               primary care amount.                               primary care amount.                               primary care amount.
                                                  High Value Specialty Care OP             Under Development; <normal                         Under Development; <normal                         Under Development; <normal                         Under Development; <normal
                                                    Visit.                                   specialty care amount.                             specialty care amount.                             specialty care amount.                             specialty care amount.
                                                  Emergency Room Visit ............        Fixed fee that = 20% of aver-                      $80 IN; 25% OON ...................                TBD, ≤$60 ................................         $60.
                                                                                             age allowable amount IN;
                                                                                             25% OON.
                                                  Urgent Care Center .................     Same as primary care out-                          $40 IN; 25% OON ...................                TBD, ≤$30 ................................         $30.
                                                                                             patient amount IN; 25%
                                                                                             OON.
                                                  Ambulatory Surgery .................     20% IN; 25% OON ..................                 $95 IN; 25% OON ...................                TBD, ≤$60 ................................         $60.
                                                  Ambulance Service (not includ-           Fixed fee that = 20% of aver-                      $60 IN; 25% OON ...................                TBD, ≤$40 ................................         $40.
                                                   ing air).                                 age allowable amount IN;
                                                                                             25% OON.
                                                  Durable Med. Equip .................     20% IN; 25% OON ..................                 20% IN; 25% OON ..................                 20% ..........................................     20%.
                                                  Inpatient Admission .................    $250/day up to 25% hosp.                           $175/admission IN; 25% OON                         TBD, ≤$150/admission ............                  $150/admission.
                                                                                             charge + 20% separately
                                                                                             billed services IN; 25% OON.
                                                  Inpatient Skilled Nursing/               $250/day up to 25% hospital                        $50/day IN; Lesser of $300/                        TBD, ≤$30/day .........................            $30/day.
                                                    Rehab Admission.                         charge + 20% separately                            day or 20% OON.
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                                                                                             billed services IN; 25% OON.



                                                  III. Regulatory Procedures                                                 statutory specifications regarding                                                   purposes of enrollment fees,
                                                                                                                             effective dates of changes to TRICARE                                                deductibles, and catastrophic caps to a
                                                  Public Comments Invited
                                                                                                                             as a health care entitlement program.                                                calendar year-based TRICARE plan year
                                                     This is being issued as an interim                                      For example, the change from a fiscal                                                requires that this regulation be in place
                                                  final rule in order to comply with                                         year-based TRICARE plan year for                                                     by October 1, 2017. Many other changes


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                          45445

                                                  must be in place by January 1, 2018,                    Public Law 96–354, ‘‘Regulatory                       PART 199—CIVILIAN HEALTH AND
                                                  including the operation of TRICARE                      Flexibility Act’’ (RFA), (5 U.S.C. 601)               MEDICAL PROGRAM OF THE
                                                  Select to replace TRICARE Extra and                                                                           UNIFORMED SERVICES (CHAMPUS)
                                                  TRICARE Standard, which DoD no                            The Regulatory Flexibility Act
                                                  longer has authority to operate as of that              requires that each Federal agency                     ■ 1. The authority citation for part 199
                                                  date. In view of the statutory effective                analyze options for regulatory relief of              continues to read as follows:
                                                  dates of the substantial changes in                     small businesses if a rule has a
                                                                                                                                                                  Authority: 5 U.S.C. 301; 10 U.S.C. chapter
                                                  TRICARE, the Department finds that                      significant impact on a substantial                   55.
                                                  obtaining public comment in advance of                  number of small entities. For purposes
                                                                                                          of the RFA, small entities include small              ■  2. In § 199.2, paragraph (b) is amended
                                                  issuing this rule is impracticable,
                                                                                                          businesses, nonprofit organizations, and              by:
                                                  unnecessary, and contrary to the public
                                                                                                          small governmental jurisdictions. This                ■ a. Revising the definitions of ‘‘Basic
                                                  interest. Nonetheless, DoD invites
                                                                                                          interim final rule is not an economically             program,’’ ‘‘Deductible,’’ ‘‘Deductible
                                                  public comments on this rule and is
                                                                                                          significant regulatory action, and it will            certificate,’’ ‘‘Former member,’’ and
                                                  committed to considering all comments
                                                                                                          not have a significant impact on a                    ‘‘Member.’’
                                                  and issuing a final rule as soon as
                                                                                                          substantial number of small entities.                 ■ b. Adding the definitions of ‘‘Program
                                                  practicable.
                                                                                                          Therefore, this rule is not subject to the            year’’ and ‘‘Retired category’’ in
                                                  Executive Order (E.O.) 13771,                           requirements of the RFA.                              alphabetical order.
                                                  ‘‘Reducing Regulation and Controlling                                                                         ■ c. Revising the definition of ‘‘Retiree.’’
                                                  Regulatory Costs’’                                      Public Law 104–4, Sec. 202, ‘‘Unfunded                ■ d. Adding the definition of ‘‘TRICARE
                                                     E.O. 13771 seeks to control costs                    Mandates Reform Act’’                                 Extra’’ in alphabetical order.
                                                  associated with the government                                                                                ■ e. Removing the definition of
                                                                                                            Section 202 of the Unfunded                         ‘‘TRICARE extra plan.’’
                                                  imposition of private expenditures                      Mandates Reform Act of 1995 also
                                                  required to comply with Federal                                                                               ■ f. Adding the definition of ‘‘TRICARE
                                                                                                          requires that agencies assess anticipated             for Life’’ and ‘‘TRICARE Prime’’ in
                                                  regulations and to reduce regulations                   costs and benefits before issuing any
                                                  that impose such costs. Consistent with                                                                       alphabetical order.
                                                                                                          rule whose mandates require spending                  ■ g. Removing the definition of
                                                  the analysis of transfer payments under                 in any one year of $100 million in 1995
                                                  OMB Circular A–4, this interim final                                                                          ‘‘TRICARE prime plan.’’
                                                                                                          dollars, updated annually for inflation.              ■ h. Revising the definitions of
                                                  rule does not involve regulatory costs                  That threshold level is currently
                                                  subject to E.O. 13771.                                                                                        ‘‘TRICARE program’’ and ‘‘TRICARE
                                                                                                          approximately $140 million. This                      Retired Reserve.’’
                                                  Executive Order 12866, ‘‘Regulatory                     interim final rule will not mandate any               ■ i. Adding the definitions of ‘‘TRICARE
                                                  Planning and Review’’ and Executive                     requirements for state, local, or tribal              Select’’ and ‘‘TRICARE Standard’’ in
                                                  Order 13563, ‘‘Improving Regulation                     governments or the private sector.                    alphabetical order.
                                                  and Regulatory Review’’                                 Public Law 96–511, ‘‘Paperwork                        ■ j. Removing the definition of
                                                     Executive Orders 13563 and 12866                     Reduction Act’’ (44 U.S.C. Chapter 35)                ‘‘TRICARE standard plan.’’
                                                  direct agencies to assess all costs and                                                                          The revisions and additions read as
                                                  benefits of available regulatory                           This rulemaking does not contain a                 follows:
                                                  alternatives and, if regulation is                      ‘‘collection of information’’
                                                                                                                                                                § 199.2    Definitions.
                                                  necessary, to select regulatory                         requirement, and will not impose
                                                                                                          additional information collection                     *      *     *     *      *
                                                  approaches that maximize net benefits
                                                                                                          requirements on the public under Public                  (b) * * *
                                                  (including potential economic,
                                                                                                          Law 96–511, ‘‘Paperwork Reduction                        Basic program. The primary medical
                                                  environmental, public health and safety
                                                                                                          Act’’ (44 U.S.C. Chapter 35).                         benefits set forth in § 199.4, generally
                                                  effects, distribute impacts, and equity).
                                                                                                                                                                referred to as the Civilian Health and
                                                  Executive Order 13563 emphasizes the                    Executive Order 13132, ‘‘Federalism’’                 Medical Program of the Uniformed
                                                  importance of quantifying both costs
                                                                                                                                                                Services (CHAMPUS) as authorized
                                                  and benefits, of reducing costs, of                       This interim final rule has been                    under chapter 55 of title 10 United
                                                  harmonizing rules, and of promoting                     examined for its impact under E.O.                    States Code, were made available to
                                                  flexibility. This interim final rule has                13132, and it does not contain policies               eligible beneficiaries under this part.
                                                  been designated ‘‘significant regulatory                that have federalism implications that
                                                  action,’’ although not economically                     would have substantial direct effects on              *      *     *     *      *
                                                  significant, under section 3(f) of                      the States, on the relationship between                  Deductible. Payment by an individual
                                                  Executive Order 12866. Accordingly,                     the national Government and the States,               beneficiary or family of a specific first
                                                  this rule has been reviewed by the                      or on the distribution of powers and                  dollar amount of the TRICARE
                                                  Office of Management and Budget                         responsibilities among the various                    allowable amount for otherwise covered
                                                  (OMB).                                                  levels of Government. Therefore,                      outpatient services or supplies obtained
                                                                                                          consultation with State and local                     in any program year. The dollar amount
                                                  Congressional Review Act, 5 U.S.C.                                                                            of deductible per individual or family is
                                                  804(2)                                                  officials is not required.
                                                                                                                                                                calculated as specified by law.
                                                    Under the Congressional Review Act,                   List of Subjects in 32 CFR Part 199                      Deductible certificate. A statement
                                                  a major rule may not take effect until at                                                                     issued to the beneficiary (or sponsor) by
                                                                                                            Claims, Dental health, Health care,
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                                                  least 60 days after submission to                                                                             a TRICARE contractor certifying to
                                                                                                          Health insurance, Individuals with                    deductible amounts satisfied by a
                                                  Congress of a report regarding the rule.
                                                                                                          disabilities, Mental health, Mental                   beneficiary for any applicable program
                                                  A major rule is one that would have an
                                                                                                          health parity, Military personnel.                    year.
                                                  annual effect on the economy of $100
                                                  million or more or have certain other                     For the reasons stated in the                       *      *     *     *      *
                                                  impacts. This interim final rule is not a               preamble, the Department of Defense                      Former member. An individual who
                                                  major rule under the Congressional                      amends 32 CFR part 199 as set forth                   is eligible for, or entitled to, retired pay,
                                                  Review Act.                                             below:                                                at age 60, for non-Regular service in


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                                                  45446            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  accordance with chapter 1223, title 10,                    TRICARE Select. The self-managed,                  and dressings are disposable syringes
                                                  United States Code but who has been                     preferred-provider network option                     for a known diabetic, colostomy sets,
                                                  discharged and who maintains no                         under the TRICARE Program established                 irrigation sets, and elastic bandages. An
                                                  military affiliation. These former                      by 10 U.S.C. 1075 and § 199.17 to                     external surgical garment specifically
                                                  members, at age 60, and their eligible                  replace TRICARE Extra and Standard                    designed for use follow a mastectomy is
                                                  dependents are entitled to medical care,                after December 31, 2017.                              considered a medical supply item.
                                                  commissary, exchange, and MWR                              TRICARE Standard. The TRICARE                         Note 1 to paragraph (d)(3)(iii)(A):
                                                  privileges. Under age 60, they and their                program made available prior to January               Generally, the allowable charge of a medical
                                                  eligible dependents are entitled to                     1, 2018, under which the basic program                supply item will be under $100. Any item
                                                  commissary, exchange, and MWR                           of health care benefits generally referred            over this amount must be reviewed to
                                                  privileges only.                                        to as CHAMPUS was made available to                   determine whether it would qualify as a DME
                                                  *      *     *     *     *                              eligible beneficiaries under this part.               item. If it is, in fact, a medical supply item
                                                                                                                                                                and does not represent an excessive charge,
                                                     Member. An individual who is                         *     *     *     *     *                             it can be considered for benefits under
                                                  affiliated with a Service, either an active             ■ 3. Section 199.4 is amended by:                     paragraph (d)(3)(iii) of this section.
                                                  duty member, Reserve member, active                     ■ a. Adding paragraph (c)(1)(iii);
                                                  duty retired member, or Retired Reserve                                                                          (B) Medically necessary food and
                                                                                                          ■ b. Revising paragraph (d)(3)(iii);
                                                  member. Members in a retired status are                                                                       medical equipment and supplies
                                                                                                          ■ c. Adding paragraph (d)(3)(vi)(D);
                                                  not former members. Also referred to as                                                                       necessary to administer such food (other
                                                                                                          ■ d. Revising paragraph (e)(28)(iv);
                                                  the sponsor.                                                                                                  than durable medical equipment and
                                                                                                          ■ e. Adding paragraph (e)(28)(v);
                                                                                                                                                                supplies) when prescribed for dietary
                                                  *      *     *     *     *                              ■ f. Removing the words ‘‘fiscal year’’
                                                                                                                                                                management of a covered disease or
                                                     Program year. The appropriate year                   everywhere they appear and adding in
                                                                                                                                                                condition. (1) Medically necessary food,
                                                  (e.g., calendar year, fiscal year, rolling              their place the words ‘‘calendar year’’ in
                                                                                                                                                                including a low protein modified food
                                                  12-month period, etc.) specified in the                 paragraphs (f)(2) through (4) and (10);
                                                                                                                                                                product or an amino acid preparation
                                                  administration of TRICARE programs                      ■ g. Adding paragraph (f)(13);
                                                                                                                                                                product, may be covered when:
                                                  for application of unique requirements                  ■ h. Revising paragraph (g)(39)
                                                                                                                                                                   (i) Furnished pursuant to the
                                                  or limitations (e.g., enrollment fees,                  introductory text and adding paragraph
                                                                                                                                                                prescription, order, or recommendation
                                                  deductibles, catastrophic loss                          (g)(39)(v).
                                                                                                                                                                of a TRICARE authorized provider
                                                  protection, etc.) on covered health care                ■ i. Revising paragraph (g)(57).
                                                                                                                                                                acting within the provider’s scope of
                                                  services obtained or provided during the                   The revisions and additions read as
                                                                                                                                                                license/certificate of practice, for the
                                                  designated time period.                                 follows:
                                                                                                                                                                dietary management of a covered
                                                  *      *     *     *     *                              § 199.4   Basic program benefits.                     disease or condition;
                                                     Retired category. Retirees and their                                                                          (ii) Is a specifically formulated and
                                                                                                          *      *    *     *     *
                                                  family members who are beneficiaries                                                                          processed product (as opposed to a
                                                                                                            (c) * * *
                                                  covered by 10 U.S.C. 1086(c), other than                                                                      naturally occurring foodstuff used in its
                                                                                                            (1) * * *
                                                  Medicare-eligible beneficiaries as                                                                            natural state) for the partial or exclusive
                                                                                                            (iii) Telehealth services. Health care
                                                  described in 10 U.S.C. 1086(d).                                                                               feeding of an individual by means of
                                                                                                          services covered by TRICARE and
                                                     Retiree. For ease of reference in this                                                                     oral intake or enteral feeding by tube;
                                                                                                          provided through the use of telehealth
                                                  part only, and except as otherwise                                                                               (iii) Is intended for the dietary
                                                                                                          modalities are covered services to the
                                                  specified in this part, the term means a                                                                      management of an individual who,
                                                                                                          same extent as if provided in person at
                                                  member or former member of a                                                                                  because of therapeutic or chronic
                                                                                                          the location of the patient if those
                                                  Uniformed Service who is entitled to                                                                          medical needs, has limited or impaired
                                                                                                          services are medically necessary and
                                                  retired, retainer, or equivalent pay based                                                                    capacity to ingest, digest, absorb, or
                                                                                                          appropriate for such modalities. The
                                                  on duty in a Uniformed Service.                                                                               metabolize ordinary foodstuffs or
                                                                                                          Director will establish special
                                                  *      *     *     *     *                                                                                    certain nutrients, or who has other
                                                                                                          procedures for payment for such
                                                     TRICARE Extra. The preferred-                                                                              special medically determined nutrient
                                                                                                          services. Additionally, where
                                                  provider option of the TRICARE                                                                                requirements, the dietary management
                                                                                                          appropriate, in order to incentive the
                                                  program made available prior to January                                                                       of which cannot be achieved by the
                                                                                                          use of telehealth services, the Director
                                                  1, 2018, under which TRICARE                                                                                  modification of the normal diet alone;
                                                                                                          may modify the otherwise applicable
                                                  Standard beneficiaries may obtain                                                                                (iv) Is intended to be used under
                                                                                                          beneficiary cost-sharing requirements in
                                                  discounts on cost sharing as a result of                                                                      medical supervision, which may
                                                                                                          paragraph (f) of this section which
                                                  using TRICARE network providers.                                                                              include in a home setting; and
                                                                                                          otherwise apply.                                         (v) Is intended only for an individual
                                                     TRICARE for Life. The Medicare
                                                  wraparound coverage option of the                       *      *    *     *     *                             receiving active and ongoing medical
                                                  TRICARE program made available to an                      (d) * * *                                           supervision under which the individual
                                                  eligible beneficiary by reason of 10                      (3) * * *                                           requires medical care on a recurring
                                                                                                            (iii) Medical supplies and dressings                basis for, among other things,
                                                  U.S.C. 1086(d).
                                                                                                          (consumables)—(A) In general. In                      instructions on the use of the food.
                                                  *      *     *     *     *                              general, medical supplies and dressings                  (2) Medically necessary food does not
                                                     TRICARE Prime. The managed care                      (consumables) are those that do not                   include:
                                                  option of the TRICARE program                           withstand prolonged, repeated use.                       (i) Food taken as part of an overall
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                                                  established under § 199.17.                             Such items must be related directly to                diet designed to reduce the risk of a
                                                     TRICARE program. The program                         an appropriate and verified covered                   disease or medical condition or as
                                                  established under § 199.17.                             medical condition of the specific                     weight-loss products, even if the food is
                                                  *      *     *     *     *                              beneficiary for whom the item was                     recommended by a physician or other
                                                     TRICARE Retired Reserve. The                         purchased and obtained from a medical                 health care professional;
                                                  program established under 10 U.S.C.                     supply company, a pharmacy, or                           (ii) Food marketed as gluten-free for
                                                  1076e and § 199.25.                                     authorized institutional provider.                    the management of celiac disease or
                                                  *      *     *     *     *                              Examples of covered medical supplies                  non-celiac gluten sensitivity;


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                          45447

                                                     (iii) Food marketed for the                          amount specified in paragraph (f) of this             supervision of a physician who is
                                                  management of diabetes; or                              section will be applicable to the 15-                 overseeing the episode of treatment or
                                                     (iv) Such other products as the                      month period of October 1, 2016                       the covered program of services.
                                                  Director, Defense Health Agency                         through December 31, 2017.                              (M) Registered dietician. The dietician
                                                  determines appropriate.                                   (g) * * *                                           must be licensed by the State in which
                                                     (3) Covered disease or condition                       (39) Counseling. Educational,                       the care is provided and must be under
                                                  under paragraph (d)(3)(iii)(B) of this                  vocational, non-medical nutritional                   the supervision of a physician who is
                                                  section means:                                          counseling, counseling for                            overseeing the episode of treatment or
                                                     (i) Inborn errors of metabolism;                     socioeconomic purposes, stress                        the covered program of services.
                                                     (ii) Medical conditions of                           management, and/or lifestyle                          *     *     *    *    *
                                                  malabsorption;                                          modification purposes, except the
                                                     (iii) Pathologies of the alimentary tract            following are not excluded:                           § 199.7    [Amended]
                                                  or the gastrointestinal tract;                          *     *     *      *     *                            ■ 6. Section 199.7(a)(6) is amended by
                                                     (iv) A neurological or physiological                   (v) Medical nutritional therapy (also               removing the words ‘‘fiscal year’’
                                                  condition; and                                          referred to as medical nutritional                    everywhere they appear and adding in
                                                     (v) Such other diseases or conditions                counseling) required in the                           their place the words ‘‘calendar year’’.
                                                  the Director, Defense Health Agency                     administration of the medically
                                                  determines appropriate.                                 necessary foods, services and supplies                § 199.8    [Amended]
                                                  *       *     *    *     *                              authorized in paragraph (d)(3)(iii)(B) of             ■  7. Section 199.8(d)(1)(v) is amended
                                                     (vi) * * *                                           this section, medically necessary                     by removing ‘‘Sec. 199.4(f)(10)’’ and
                                                     (D) Medically necessary vitamins                     vitamins authorized in paragraph                      adding in its place ‘‘§ 199.4(f)(10)’’ and
                                                  used for the management of a covered                    (d)(3)(vi)(D) of this section, or when                removing the words ‘‘fiscal year’’ and
                                                  disease or condition pursuant to a                      medically necessary for other                         adding in their place the words
                                                  prescription, order, or recommendation                  authorized covered services.                          ‘‘calendar year’’.
                                                  of a TRICARE authorized provider                        *     *     *      *     *                            ■ 8. Section 199.11 is amended by
                                                  acting within the provider’s scope of                     (57) Food, food substitutes. Food, food             revising paragraph (a) to read as follows:
                                                  license/certificate of practice. For                    substitutes, vitamins, or other
                                                  purposes of this paragraph (d)(3)(vi)(D),               nutritional supplements, including                    § 199.11    Overpayments recovery.
                                                  the term ‘‘covered disease or condition’’               those related to prenatal care, except as                (a) General. Actions to recover
                                                  means:                                                  authorized in paragraphs (d)(3)(iii)(B)               overpayments arise when the
                                                     (1) Inborn errors of metabolism;                     and (d)(3)(vi)(D) of this section.                    government has a right to recover
                                                     (2) Medical conditions of                                                                                  money, funds, or property from any
                                                                                                          *     *     *      *     *
                                                  malabsorption;                                                                                                person, partnership, association,
                                                                                                          ■ 4. Section 199.5 is amended by:
                                                     (3) Pathologies of the alimentary tract                                                                    corporation, governmental body or other
                                                                                                          ■ a. Removing the words ‘‘fiscal year’’
                                                  or the gastrointestinal tract;                                                                                legal entity, foreign or domestic, except
                                                     (4) A neurological or physiological                  everywhere they appear and adding in
                                                                                                          their place the words ‘‘program year’’ in             another Federal agency, because of an
                                                  condition;                                                                                                    erroneous payment of benefits under
                                                     (5) Pregnancy in relation to prenatal                paragraphs (c)(7)(iii), (f)(3), (g)(2)(i), and
                                                                                                          (h)(3)(v)(A); and                                     both CHAMPUS and the TRICARE
                                                  vitamins, with the limitation the                                                                             program under this part. The term
                                                                                                          ■ b. Adding paragraph (a)(3).
                                                  prenatal vitamins that require a                                                                              ‘‘Civilian Health and Medical Program
                                                  prescription in the United States may be                  The addition reads as follows:
                                                                                                                                                                of the Uniformed Services’’ (CHAMPUS)
                                                  covered for prenatal care only;                         § 199.5 TRICARE Extended Health Care                  is defined in 10 U.S.C. 1072(2), referred
                                                     (6) Such other disease or conditions                 Option (ECHO).                                        to as the CHAMPUS basic program.
                                                  the Director, Defense Health Agency                        (a) * * *                                          Prior to January 1, 2018, the term
                                                  determines appropriate.                                    (3) The Government’s cost-share for                ‘‘TRICARE program’’ referred to the
                                                  *       *     *    *     *                              ECHO or ECHO home health benefits                     triple-option of health benefits known
                                                     (e) * * *                                            during any program year is limited as                 as TRICARE Prime, TRICARE Extra, and
                                                     (28) * * *                                           stated in this section. In order to                   TRICARE Standard. Specifically,
                                                     (iv) Health promotion and disease                    transition the program year from a fiscal             TRICARE Standard was the TRICARE
                                                  prevention visits (which may include all                year to a calendar year basis, the                    program under which the basic program
                                                  of the services provided pursuant to                    Government’s annual cost-share                        of health care benefits generally referred
                                                  § 199.17(f)(2)) for beneficiaries 6 years of            limitation specified in paragraph (f) of              to as CHAMPUS was made available to
                                                  age or older may be provided in                         this section shall be prorated for the last           eligible beneficiaries under this Part
                                                  connection with immunizations and                       quarter of calendar year 2018 as                      199. Effective January 1, 2018, the term
                                                  cancer screening examinations                           authorized by 10 U.S.C. 1079(f)(2)(A).                ‘‘TRICARE program’’ is defined in 10
                                                  authorized by paragraphs (e)(28)(i) and                 *      *    *     *     *                             U.S.C. 1072(2) and includes TRICARE
                                                  (ii) of this section).                                                                                        Prime, TRICARE Select and TRICARE
                                                                                                          ■ 5. Section 199.6 is amended by
                                                     (v) Breastfeeding support, supplies                                                                        for Life. It is the purpose of this section
                                                                                                          revising paragraphs (c)(3)(iii)(L) and (M)
                                                  (including breast pumps and associated                                                                        to prescribe procedures for
                                                                                                          to read as follows:
                                                  equipment), and counseling.                                                                                   investigation, determination, assertion,
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                                                  *       *     *    *     *                              § 199.6   TRICARE-authorized providers.               collection, compromise, waiver and
                                                     (f) * * *                                            *      *    *    *     *                              termination of claims in favor of the
                                                     (13) Special transition rule for the last              (c) * * *                                           United States for erroneous benefit
                                                  quarter of calendar year 2017. In order                   (3) * * *                                           payments arising out of the
                                                  to transition deductibles and                             (iii) * * *                                         administration CHAMPUS and the
                                                  catastrophic caps from a fiscal year basis                (L) Nutritionist. The nutritionist must             TRICARE program. For the purpose of
                                                  to a calendar year basis, the deductible                be licensed by the State in which the                 this section, references herein to
                                                  amount and the catastrophic cap                         care is provided and must be under the                TRICARE beneficiaries, claims, benefits,


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                                                  45448            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  payments, or appeals shall include                      section. The geographic availability of               ‘‘retired category’’), who are
                                                  CHAMPUS beneficiaries, claims,                          TRICARE Prime is generally limited as                 beneficiaries covered by 10 U.S.C.
                                                  benefits, payments, or appeals. A claim                 provided in this section. The Assistant               1086(c) other than those beneficiaries
                                                  against several joint debtors arising from              Secretary of Defense (Health Affairs)                 eligible for Medicare Part A.
                                                  a single incident or transaction is                     may also authorize modifications to                      (D) Medicare eligible retirees and
                                                  considered one claim. The Director, or                  TRICARE program rules and procedures                  Medicare eligible retiree family
                                                  a designee, may pursue collection                       as may be appropriate to the area                     members who are beneficiaries covered
                                                  against all joint debtors and is not                    involved.                                             by 10 U.S.C. 1086(d) as each become
                                                  required to allocate the burden of                         (4) Rules and procedures affected.                 individually eligible for Medicare Part A
                                                  payment between debtors.                                Much of this section relates to rules and             and enroll in Medicare Part B.
                                                  *     *     *     *     *                               procedures applicable to the delivery                    (E) Military treatment facility (MTF)
                                                                                                          and financing of health care services                 only beneficiaries are beneficiaries
                                                  ■ 9. Section 199.17 is revised to read as
                                                                                                          provided by civilian providers outside                eligible for health care services in
                                                  follows.                                                military treatment facilities. This                   military treatment facilities, but not
                                                  § 199.17   TRICARE program.                             section provides that certain rules,                  eligible for a TRICARE plan covering
                                                     (a) Establishment. The TRICARE                       procedures, rights and obligations set                non-MTF care.
                                                  program is established for the purpose                  forth elsewhere in this part (and usually                (ii) Health plans available. The major
                                                  of implementing a comprehensive                         applicable to CHAMPUS) are different                  TRICARE health plans are as follows:
                                                                                                          under the TRICARE program. To the                        (A) TRICARE Prime. ‘‘TRICARE
                                                  managed health care program for the
                                                                                                          extent that TRICARE program rules,                    Prime’’ is a health maintenance
                                                  delivery and financing of health care
                                                                                                          procedures, rights and obligations set                organization (HMO)-like program. It
                                                  services in the Military Health System.
                                                                                                          forth in this section are not different               generally features use of military
                                                     (1) Purpose. The TRICARE program
                                                                                                          from or otherwise in conflict with those              treatment facilities and substantially
                                                  implements a number of improvements
                                                                                                          set forth elsewhere in this part as                   reduced out-of-pocket costs for care
                                                  primarily through modernized managed
                                                                                                          applicable to CHAMPUS, the                            provided outside MTFs. Beneficiaries
                                                  care support contracts that include
                                                                                                          CHAMPUS provisions are incorporated
                                                  special arrangements with civilian                                                                            generally agree to use military treatment
                                                                                                          into the TRICARE program. In addition,
                                                  sector health care providers and better                                                                       facilities and designated civilian
                                                                                                          some rules, procedures, rights and
                                                  coordination between military medical                                                                         provider networks and to follow certain
                                                                                                          obligations relating to health care
                                                  treatment facilities (MTFs) and these                                                                         managed care rules and procedures. The
                                                                                                          services in military treatment facilities
                                                  civilian providers to deliver an                                                                              primary purpose of TRICARE Prime is
                                                                                                          are also different under the TRICARE
                                                  integrated, health care delivery system                                                                       to support the effective operation of an
                                                                                                          program. In such cases, provisions of
                                                  that provides beneficiaries with access                                                                       MTF, which exists to support the
                                                                                                          this section take precedence and are
                                                  to high quality healthcare.                                                                                   medical readiness of the armed forces
                                                                                                          binding.
                                                  Implementation of these improvements,                                                                         and the readiness of medical personnel.
                                                                                                             (5) Implementation based on local
                                                  to include enhanced access, improved                                                                          TRICARE Prime will be offered in areas
                                                                                                          action. The TRICARE program is not
                                                  health outcomes, increased efficiencies                                                                       where the Director determines that it is
                                                                                                          automatically implemented in all
                                                  and elimination of waste, in addition to                                                                      appropriate to support the effective
                                                                                                          respects in all areas where it is
                                                  improving and maintaining operational                                                                         operation of one or more MTFs.
                                                                                                          potentially applicable. Therefore, not all
                                                  medical force readiness, includes                       provisions of this section are                           (B) TRICARE Select. ‘‘TRICARE
                                                  adoption of special rules and                           automatically implemented. Rather,                    Select’’ is a self-managed, preferred
                                                  procedures not ordinarily followed                      implementation of the TRICARE                         provider organization (PPO) program. It
                                                  under CHAMPUS or MTF requirements.                      program and this section requires an                  allows beneficiaries to use the TRICARE
                                                  This section establishes those special                  official action by the Director, Defense              provider civilian network, with reduced
                                                  rules and procedures.                                   Health Agency. Public notice of the                   out-of-pocket costs compared to care
                                                     (2) Statutory authority. Many of the                 initiation of portions of the TRICARE                 from non-network providers, as well as
                                                  provisions of this section are authorized               program will be achieved through                      military treatment facilities (where they
                                                  by statutory authorities other than those               appropriate communication and media                   exist and when space is available).
                                                  which authorize the usual operation of                  methods and by way of an official                     TRICARE Select enrollees will not have
                                                  the CHAMPUS program, especially 10                      announcement by the Director                          restrictions on their freedom of choice
                                                  U.S.C. 1079 and 1086. The TRICARE                       identifying the military medical                      with respect to authorized health care
                                                  program also relies upon other available                treatment facility catchment area or                  providers. However, when a TRICARE
                                                  statutory authorities, including 10                     other geographical area covered.                      Select beneficiary receives services
                                                  U.S.C. 1075 (TRICARE Select), 10 U.S.C.                    (6) Major features of the TRICARE                  covered under the basic program from
                                                  1075a (TRICARE Prime cost sharing), 10                  program. The major features of the                    an authorized health care provider who
                                                  U.S.C. 1095f (referrals and pre-                        TRICARE program, described in this                    is not part of the TRICARE provider
                                                  authorizations under TRICARE Prime),                    section, include the following:                       network that care is covered by
                                                  10 U.S.C. 1099 (health care enrollment                     (i) Beneficiary categories. Under the              TRICARE but is subject to higher cost
                                                  system), 10 U.S.C. 1097 (contracts for                  TRICARE program, health care                          sharing amounts for ‘‘out-of-network’’
                                                  medical care for retirees, dependents                   beneficiaries are generally classified                care. Those amounts are the same as
                                                  and survivors: Alternative delivery of                  into one of several categories:                       under the basic program under § 199.4.
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                                                  health care), and 10 U.S.C. 1096                           (A) Active duty members, who are                      (C) TRICARE for Life. ‘‘TRICARE for
                                                  (resource sharing agreements).                          covered by 10 U.S.C. 1074(a).                         Life’’ is the Medicare wraparound
                                                     (3) Scope of the program. The                           (B) Active duty family members, who                coverage plan under 10 U.S.C. 1086(d).
                                                  TRICARE program is applicable to all                    are beneficiaries covered by 10 U.S.C.                Rules applicable to this plan are
                                                  the uniformed services. TRICARE Select                  1079 (also referred to in this section as             unaffected by this section; they are
                                                  and TRICARE-for-Life shall be available                 ‘‘active duty family category’’).                     generally set forth in §§ 199.3
                                                  in all areas, including overseas as                        (C) Retirees and their family members              (Eligibility), 199.4 (Basic Program
                                                  authorized in paragraph (u) of this                     (also referred to in this section as                  Benefits), and 199.8 (Double Coverage).


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                       45449

                                                     (D) TRICARE Standard. ‘‘TRICARE                      care delivery or financing methods,                   program benefits (not enhanced Select
                                                  Standard’’ generally referred to the basic              within the meaning of the statutes                    care) are covered by TRICARE and the
                                                  CHAMPUS program of benefits under                       identified in paragraph (a)(7)(i) of this             beneficiary is subject to higher cost
                                                  § 199.4. While the law required                         section. Preemption, however, does not                sharing amounts for ‘‘out-of-network’’
                                                  termination of TRICARE Standard as a                    apply to taxes, fees, or other payments               care. Those amounts are the same as
                                                  distinct TRICARE plan December 31,                      on net income or profit realized by such              under the basic program under § 199.4.
                                                  2017, the CHAMPUS basic program                         entities in the conduct of business                      (c) Eligibility for enrollment in
                                                  benefits under § 199.4 continues as the                 relating to DoD health services                       TRICARE Prime and TRICARE Select.
                                                  baseline of benefits common to the                      contracts, if those taxes, fees or other              Beneficiaries in the active duty family
                                                  TRICARE Prime and TRICARE Select                        payments are applicable to a broad                    category and the retired category are
                                                  plans.                                                  range of business activity. For purposes              eligible to enroll in TRICARE Prime
                                                     (iii) Comprehensive enrollment                       of assessing the effect of Federal                    and/or TRICARE Select as outlined in
                                                  system. The TRICARE program includes                    preemption of State and local taxes and               this paragraph (c). A retiree or retiree
                                                  a comprehensive enrollment system for                   fees in connection with DoD health and                family member who becomes eligible for
                                                  all categories of beneficiaries except                  dental services contracts, interpretations            Medicare Part A is not eligible to enroll
                                                  TRICARE-for-Life beneficiaries. When                    shall be consistent with those applicable             in TRICARE Select; however, as
                                                  eligibility for enrollment for TRICARE                  to the Federal Employees Health                       provided in this paragraph (c), some
                                                  Prime and/or TRICARE Select exists, a                   Benefits Program under 5 U.S.C. 8909(f).              Medicare eligible retirees/family
                                                  beneficiary must enroll in one of the                      (b) TRICARE Prime and TRICARE                      members may be allowed to enroll in
                                                  plans. Refer to paragraph (o) of this                   Select health plans in general. The two               TRICARE Prime where available. In
                                                  section for TRICARE program                             primary plans for beneficiaries in the                general, when a retiree or retiree family
                                                  enrollment procedures.                                  active duty family category and the                   member becomes individually eligible
                                                     (7) Preemption of State laws. (i)                    retired category (which does not include              for Medicare Part A and enrolls in
                                                  Pursuant to 10 U.S.C. 1103 the                          most Medicare-eligible retirees/                      Medicare Part B, he/she is automatically
                                                  Department of Defense has determined                    dependents) are TRICARE Prime and                     eligible for TRICARE-for-Life and is
                                                  that in the administration of 10 U.S.C.                 TRICARE Select. This paragraph (b)                    required to enroll in the Defense
                                                  chapter 55, preemption of State and                     further describes the TRICARE Prime                   Enrollment Eligibility Reporting System
                                                  local laws relating to health insurance,                and TRICARE Select health plans.                      (DEERS) to verify eligibility. Further,
                                                  prepaid health plans, or other health                      (1) TRICARE Prime. TRICARE Prime                   some rules and procedures are different
                                                  care delivery or financing methods is                   is a managed care option that provides                for dependents of active duty members
                                                  necessary to achieve important Federal                  enhanced medical services to                          and retirees, dependents, and survivors.
                                                  interests, including but not limited to                 beneficiaries at reduced cost-sharing                    (1) Active duty members. Active duty
                                                  the assurance of uniform national health                amounts for beneficiaries whose care is               members are required to enroll in Prime
                                                  programs for military families and the                  managed by a designated primary care                  where it is offered. Active duty
                                                  operation of such programs at the lowest                manager and provided by an MTF or                     members shall have first priority for
                                                  possible cost to the Department of                      network provider. TRICARE Prime is                    enrollment in Prime.
                                                  Defense, that have a direct and                         offered in a location in which an MTF                    (2) Dependents of active duty
                                                  substantial effect on the conduct of                    is located (other than a facility limited             members. Beneficiaries in the active
                                                  military affairs and national security                  to members of the armed forces) that has              duty family member category are
                                                  policy of the United States.                            been designated by the Director as a                  eligible to enroll in Prime (where
                                                     (ii) Based on the determination set                  Prime Service Area. In addition, where                offered) or Select.
                                                  forth in paragraph (a)(7)(i) of this                    TRICARE Prime is offered it may be                       (3) Survivors of deceased members. (i)
                                                  section, any State or local law relating                limited to active duty family members if              The surviving spouse of a member who
                                                  to health insurance, prepaid health                     the Director determines it is not                     dies while on active duty for a period
                                                  plans, or other health care delivery or                 practicable to offer TRICARE Prime to                 of more than 30 days is eligible to enroll
                                                  financing methods is preempted and                      retired category beneficiaries. TRICARE               in Prime (where offered) or Select for a
                                                  does not apply in connection with                       Prime is not offered in areas where the               3 year period beginning on the date of
                                                  TRICARE regional contracts. Any such                    Director determines it is impracticable.              the member’s death under the same
                                                  law, or regulation pursuant to such law,                If TRICARE Prime is not offered in a                  rules and provisions as dependents of
                                                  is without any force or effect, and State               geographical area, certain active duty                active duty members.
                                                  or local governments have no legal                      family members residing in the area                      (ii) A dependent child or unmarried
                                                  authority to enforce them in relation to                may be eligible to enroll in TRICARE                  person (as described in § 199.3(b)(2)(ii)
                                                  the TRICARE regional contracts.                         Prime Remote program under paragraph                  or (iv)) of a member who dies while on
                                                  (However, the Department of Defense                     (g) of this section.                                  active duty for a period of more than 30
                                                  may by contract establish legal                            (2) TRICARE Select. TRICARE Select                 days whose death occurred on or after
                                                  obligations of the part of TRICARE                      is the self-managed option under which                October 7, 2001, is eligible to enroll in
                                                  contractors to conform with                             beneficiaries may receive authorized                  Prime (where offered) or Select and is
                                                  requirements similar or identical to                    basic program benefits from any                       subject to the same rules and provisions
                                                  requirements of State or local laws or                  TRICARE authorized provider. The                      of dependents of active duty members
                                                  regulations).                                           TRICARE Select health care plan also                  for a period of three years from the date
                                                     (iii) The preemption of State and local              provides enhanced program benefits to                 the active duty sponsor dies or until the
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                                                  laws set forth in paragraph (a)(7)(ii) of               beneficiaries with access to a preferred-             surviving eligible dependent:
                                                  this section includes State and local                   provider network with broad geographic                   (A) Attains 21 years of age; or
                                                  laws imposing premium taxes on health                   availability within the United States at                 (B) Attains 23 years of age or ceases
                                                  or dental insurance carriers or                         reduced out-of-pocket expenses.                       to pursue a full-time course of study
                                                  underwriters or other plan managers, or                 However, when a beneficiary receives                  prior to attaining 23 years of age, if, at
                                                  similar taxes on such entities. Such laws               services from an authorized health care               21 years of age, the eligible surviving
                                                  are laws relating to health insurance,                  provider who is not part of the                       dependent is enrolled in a full-time
                                                  prepaid health plans, or other health                   TRICARE provider network, only basic                  course of study in a secondary school or


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                                                  45450            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  in a full-time course of study in an                    Disability Retired List (for statutorily              such additional services includes
                                                  institution of higher education approved                required periodic medical                             section 706 of the National Defense
                                                  by the Secretary of Defense and was, at                 examinations), members of the reserve                 Authorization Act for Fiscal Year 2017.
                                                  the time of the sponsor’s death, in fact                components not on active duty (for                    The specific set of such services shall be
                                                  dependent on the member for over one-                   covered medical services), military                   established by the Director and
                                                  half of such dependent’s support.                       prisoners, active duty dependents                     announced annually before the open
                                                     (4) Retirees, dependents of retirees,                unable to enroll in Prime and                         season enrollment period. Standards for
                                                  and survivors (other than survivors of                  temporarily away from place of                        preventive care services shall be
                                                  deceased members covered under                          residence, and others as designated by                developed based on guidelines from the
                                                  paragraph (c)(3) of this section). All                  the Assistant Secretary of Defense                    U.S. Department of Health and Human
                                                  retirees, dependents of retirees, and                   (Health Affairs). Additional exceptions               Services. Such standards shall establish
                                                  survivors who are not eligible for                      to the normal Prime enrollment access                 a specific schedule, including frequency
                                                  Medicare Part A are eligible to enroll in               priority rules may be granted for other               or age specifications for services that
                                                  Select. Additionally, retirees,                         categories of individuals, eligible for               may include, but are not limited to:
                                                  dependents of retirees, and survivors                   treatment in the MTF, whose access to                    (i) Laboratory and imaging tests,
                                                  who are not eligible for Medicare Part A                care is necessary to provide an adequate              including blood lead, rubella,
                                                  based on age are also eligible to enroll                clinical case mix to support graduate                 cholesterol, fecal occult blood testing,
                                                  in TRICARE Prime in locations where it                  medical education programs or                         and mammography;
                                                  is offered and where an MTF has, in the                 readiness-related medical skills                         (ii) Cancer screenings (including
                                                  judgment of the Director, a significant                 sustainment activities, to the extent                 cervical, breast, lung, prostate, and
                                                  number of health care providers,                        approved by the ASD(HA).                              colon cancer screenings);
                                                  including specialty care providers, and                    (2) Non-MTF care for active duty                      (iii) Immunizations;
                                                  sufficient capability to support the                    members. Under Prime, non-MTF care                       (iv) Periodic health promotion and
                                                  efficient operation of TRICARE Prime                    needed by active duty members                         disease prevention exams;
                                                  for projected retired beneficiary                       continues to be arranged under the                       (v) Blood pressure screening;
                                                  enrollees in that location.                             supplemental care program and subject                    (vi) Hearing exams;
                                                     (d) Health benefits under TRICARE                    to the rules and procedures of that                      (vii) Sigmoidoscopy or colonoscopy;
                                                  Prime—(1) Military treatment facility                   program, including those set forth in                    (viii) Serologic screening; and
                                                  (MTF) care—(i) In general. All                          § 199.16.                                                (ix) Appropriate education and
                                                  participants in Prime are eligible to                      (3) Civilian sector Prime benefits.                counseling services. The exact services
                                                  receive care in military treatment                      Health benefits for Prime enrollees for               offered shall be established under
                                                  facilities. Participants in Prime will be               care received from civilian providers are             uniform standards established by the
                                                  given priority for such care over other                 those under § 199.4 and the additional                Director.
                                                  beneficiaries. Among the following                      benefits identified in paragraph (f) of                  (3) Treatment of obesity. Under the
                                                  beneficiary groups, access priority for                 this section.                                         authority of 10 U.S.C. 1097 and sections
                                                  care in military treatment facilities                      (e) Health benefits under the                      706 and 729 of the National Defense
                                                  where TRICARE is implemented as                         TRICARE Select plan—(1) Civilian                      Authorization Act for Fiscal Year 2017,
                                                  follows:                                                sector care. The health benefits under                notwithstanding 10 U.S.C. 1079(a)(10),
                                                     (A) Active duty service members;                     TRICARE Select for enrolled                           treatment of obesity is covered under
                                                     (B) Active duty service members’                     beneficiaries received from civilian                  TRICARE Prime and TRICARE Select
                                                  dependents and survivors of service                     providers are those under § 199.4, and,               even if it is the sole or major condition
                                                  members who died on active duty, who                    in addition, those in paragraph (f) of this           treated. Such services must be provided
                                                  are enrolled in TRICARE Prime;                          section when received from a civilian                 by a TRICARE network provider and be
                                                     (C) Retirees, their dependents and                   network provider.                                     medically necessary and appropriate in
                                                  survivors, who are enrolled in TRICARE                     (2) Military treatment facility (MTF)              the context of the particular patient’s
                                                  Prime;                                                  care. All TRICARE Select enrolled                     treatment.
                                                     (D) Active duty service members’                     beneficiaries continue to be eligible to                 (4) High value services. Under the
                                                  dependents and survivors of deceased                    receive care in military treatment                    authority of 10 U.S.C. 1097 and other
                                                  members, who are not enrolled in                        facilities on a space available basis.                authority, including sections 706 and
                                                  TRICARE Prime; and                                         (f) Benefits under TRICARE Prime and               729 of the National Defense
                                                     (E) Retirees, their dependents and                   TRICARE Select—(1) In general. Except                 Authorization Act for Fiscal Year 2017,
                                                  survivors who are not enrolled in                       as specifically provided or authorized                for purposes of improving population-
                                                  TRICARE Prime. For purposes of this                     by this section, all benefits provided,               based health outcomes and
                                                  paragraph (d)(1), survivors of members                  and benefit limitations established,                  incentivizing medical intervention
                                                  who died while on active duty are                       pursuant to this part, shall apply to                 programs to address chronic diseases
                                                  considered as among dependents of                       TRICARE Prime and TRICARE Select.                     and other conditions and healthy
                                                  active duty service members.                               (2) Preventive care services. Certain              lifestyle interventions, the Director may
                                                     (ii) Special provisions. Enrollment in               preventive care services not normally                 waive or reduce cost sharing
                                                  Prime does not affect access priority for               provided as part of basic program                     requirements for TRICARE Prime and
                                                  care in military treatment facilities for               benefits under § 199.4 are covered                    TRICARE Select enrollees for care
                                                  several miscellaneous beneficiary                       benefits when provided to Prime or                    received from network providers for
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                                                  groups and special circumstances.                       Select enrollees by providers in the                  certain health care services designated
                                                  Those include Secretarial designees,                    civilian provider network. Such                       for this purpose. The specific services
                                                  NATO and other foreign military                         additional services are authorized under              designated for this purpose will be those
                                                  personnel and dependents authorized                     10 U.S.C. 1097, including preventive                  the Director determines provide
                                                  care through international agreements,                  care services not part of the entitlement             especially high value in terms of better
                                                  civilian employees under workers’                       under 10 U.S.C. 1074d and services that               health outcomes. The specific services
                                                  compensation programs or under safety                   would otherwise be excluded under 10                  affected for any plan year will be
                                                  programs, members on the Temporary                      U.S.C. 1079(a)(10). Other authority for               announced by the Director prior to the


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                       45451

                                                  open season enrollment period for that                  by the Secretary of Defense and was, at                  (2) Attains 23 years of age or ceases
                                                  plan year. Services affected by actions of              the time of the sponsor’s death, in fact              to pursue a full-time course of study
                                                  the Director under paragraph (f)(5) of                  dependent on the member for over one-                 prior to attaining 23 years of age, if, at
                                                  this section may be associated with                     half of such dependent’s support.                     21 years of age, the eligible surviving
                                                  actions taken for high value medications                  (3) Eligibility. (i) An active duty                 dependent is enrolled in a full-time
                                                  under § 199.21(j)(3) for select                         family member is eligible for TRICARE                 course of study in a secondary school or
                                                  pharmaceutical agents to be cost-shared                 Prime Remote for Active Duty Family                   in a full-time course of study in an
                                                  at a reduced or zero dollar rate.                       Members if he or she is eligible for                  institution of higher education approved
                                                     (5) Other services. In addition to                   CHAMPUS and, on or after December 2,                  by the Secretary of Defense and was, at
                                                  services provided pursuant to                           2003, meets the criteria of paragraphs                the time of the sponsor’s death, in fact
                                                  paragraphs (f)(2) through (4) of this                   (g)(3)(i)(A) and (B) or paragraph                     dependent on the member for over one-
                                                  section, other benefit enhancements                     (g)(3)(i)(C) of this section or on or after           half of such dependent’s support.
                                                  may be added and other benefit                          October 7, 2001, meets the criteria of                   (ii) A family member who is a
                                                  restrictions may be waived or relaxed in                paragraph (g)(3)(i)(D) or (E) of this                 dependent of a reserve component
                                                  connection with health care services                    section:                                              member is eligible for TRICARE Prime
                                                  provided to TRICARE Prime and                              (A) The family member’s active duty                Remote for Active Duty Family
                                                  TRICARE Select enrollees. Any such                      sponsor has been assigned permanent                   Members if he or she is eligible for
                                                  other enhancements or changes must be                   duty as a recruiter; as an instructor at an           CHAMPUS and meets all of the
                                                  approved by the Director based on                       educational institution, an administrator             following additional criteria:
                                                  uniform standards.                                      of a program, or to provide                              (A) The reserve component member
                                                     (g) TRICARE Prime Remote for Active                  administrative services in support of a               has been ordered to active duty for a
                                                  Duty Family Members—(1) In general. In                  program of instruction for the Reserve                period of more than 30 days.
                                                  geographic areas in which TRICARE                                                                                (B) The family member resides with
                                                                                                          Officers’ Training Corps; as a full-time
                                                  Prime is not offered and in which                                                                             the member.
                                                                                                          adviser to a unit of a reserve component;
                                                  eligible family members reside, there is                                                                         (C) The Director, determines the
                                                                                                          or any other permanent duty designated
                                                  offered under 10 U.S.C. 1079(p)                                                                               residence of the reserve component
                                                                                                          by the Director that the Director
                                                  TRICARE Prime Remote for Active Duty                                                                          member is more than 50 miles, or
                                                                                                          determines is more than 50 miles, or
                                                  Family Members as an enrollment                                                                               approximately one hour driving time,
                                                                                                          approximately one hour driving time,
                                                  option. TRICARE Prime Remote for                                                                              from the nearest military medical
                                                                                                          from the nearest military treatment
                                                  Active Duty Family Members                                                                                    treatment facility that is adequate to
                                                                                                          facility that is adequate to provide care.
                                                  (TPRADFM) will generally follow the                                                                           provide care.
                                                                                                             (B) The family members and active                     (D) ‘‘Resides with’’ is defined as the
                                                  rules and procedures of TRICARE                         duty sponsor, pursuant to the
                                                  Prime, except as provided in this                                                                             TRICARE Prime Remote residence
                                                                                                          assignment of duty described in                       address at which the family resides with
                                                  paragraph (g) and otherwise except to                   paragraph (g)(3)(i)(A) of this section,
                                                  the extent the Director determines them                                                                       the activated reservist upon activation.
                                                                                                          reside at a location designated by the                   (4) Enrollment. TRICARE Prime
                                                  to be infeasible because of the remote                  Director, that the Director determines is
                                                  area.                                                                                                         Remote for Active Duty Family
                                                                                                          more than 50 miles, or approximately                  Members requires enrollment under
                                                     (2) Active duty family member. For
                                                                                                          one hour driving time, from the nearest               procedures set forth in paragraph (o) of
                                                  purposes of this paragraph (g), the term
                                                                                                          military medical treatment facility                   this section or as otherwise established
                                                  ‘‘active duty family member’’ means one
                                                                                                          adequate to provide care.                             by the Director.
                                                  of the following dependents of an active
                                                                                                             (C) The family member, having                         (5) Health care management
                                                  duty member of the Uniformed Services:
                                                     (i) Spouse, child, or unmarried                      resided together with the active duty                 requirements under TRICARE Prime
                                                  person, as defined in § 199.3(b)(2)(i),                 sponsor while the sponsor served in an                Remote for Active Duty Family
                                                  (ii), or (iv);                                          assignment described in paragraph                     Members. The additional health care
                                                     (ii) For a 3-year period, the surviving              (g)(3)(i)(A) of this section, continues to            management requirements applicable to
                                                  spouse of a member who dies while on                    reside at the same location after the                 Prime enrollees under paragraph (n) of
                                                  active duty for a period of more than 30                sponsor relocates without the family                  this section are applicable under
                                                  days whose death occurred on or after                   member pursuant to orders for a                       TRICARE Prime Remote for Active Duty
                                                  October 7, 2001; and                                    permanent change of duty station, and                 Family Members unless the Director
                                                     (iii) The surviving dependent child or               the orders do not authorize dependents                determines they are infeasible because
                                                  unmarried person, as defined in                         to accompany the sponsor to the new                   of the particular remote location.
                                                  § 199.3(b)(2)(ii) or (iv), of a member who              duty station at the expense of the United             Enrollees will be given notice of the
                                                  dies while on active duty for a period                  States.                                               applicable management requirements in
                                                  of more than 30 days whose death                           (D) For a 3 year period, the surviving             their remote location.
                                                  occurred on or after October 7, 2001.                   spouse of a member who dies while on                     (6) Cost sharing. Beneficiary cost
                                                  Active duty family member status is for                 active duty for a period of more than 30              sharing requirements under TRICARE
                                                  a period of 3 years from the date the                   days whose death occurred on or after                 Prime Remote for Active Duty Family
                                                  active duty sponsor dies or until the                   October 7, 2001.                                      Members are the same as those under
                                                  surviving eligible dependent:                              (E) The surviving dependent child or               TRICARE Prime under paragraph (m) of
                                                     (A) Attains 21 years of age; or                      unmarried person as defined in                        this section, except that the higher
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                                                     (B) Attains 23 years of age or ceases                § 199.3(b)(2)(ii) or (iv), of a member who            point-of-service option cost sharing and
                                                  to pursue a full-time course of study                   dies while on active duty for a period                deductible shall not apply to routine
                                                  prior to attaining 23 years of age, if, at              of more than 30 days whose death                      primary health care services in cases in
                                                  21 years of age, the eligible surviving                 occurred on or after October 7, 2001, for             which, because of the remote location,
                                                  dependent is enrolled in a full-time                    three years from the date the active duty             the beneficiary is not assigned a primary
                                                  course of study in a secondary school or                sponsor dies or until the surviving                   care manager or the Director determines
                                                  in a full-time course of study in an                    eligible dependent:                                   that care from a TRICARE network
                                                  institution of higher education approved                   (1) Attains 21 years of age; or                    provider is not available within the


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                                                  45452            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  TRICARE access standards under                          ancillary charges shall be as applicable                 (E) Pediatrics.
                                                  paragraph (p)(5) of this section. The                   to services provided under TRICARE                       (F) Physician’s Assistant.
                                                  higher point-of-service option cost                     Prime or TRICARE Select, as                              (G) Nurse Practitioner.
                                                  sharing and deductible shall apply to                   appropriate.                                             (H) Nurse Midwife.
                                                  specialty health care services received                    (i) General quality assurance,                        (iii) Specialty care outpatient visits.
                                                  by any TRICARE Prime Remote for                         utilization review, and preauthorization              This category applies to outpatient care
                                                  Active Duty Family Members enrollee                     requirements under the TRICARE                        provided by provider specialties other
                                                  unless an appropriate referral/                         program. All quality assurance,                       than those listed under primary care
                                                  preauthorization is obtained as required                utilization review, and preauthorization              outpatient visits under paragraph
                                                  by paragraph (n) of this section under                  requirements for the basic CHAMPUS                    (k)(2)(ii) of this section and not
                                                  TRICARE Prime. In the case of                           program, as set forth in this part (see               specifically included in one of the other
                                                  pharmacy services under § 199.21,                       especially applicable provisions in                   categories of care (e.g., emergency room
                                                  where the Director determines that no                   §§ 199.4 and 199.15), are applicable to               visits etc.) under paragraph (k)(2) of this
                                                  TRICARE network retail pharmacy has                     Prime and Select except as provided in                section. This category also includes
                                                  been established within a reasonable                    this chapter. Pursuant to an agreement                partial hospitalization services,
                                                  distance of the residence of the                        between a military medical treatment                  intensive outpatient treatment, and
                                                  TRICARE Prime Remote for Active Duty                    facility and TRICARE managed care                     opioid treatment program services. The
                                                  Family Members enrollee, cost sharing                   support contractor, quality assurance,                per visit fee shall be applied on a per
                                                  applicable to TRICARE network retail                    utilization review, and preauthorization              day basis on days services are received,
                                                  pharmacies will be applicable to all                    requirements and procedures applicable                with the exception of opioid treatment
                                                  CHAMPUS eligible pharmacies in the                      to health care services outside the                   program services reimbursed in
                                                  remote area.                                            military medical treatment facility may               accordance with
                                                    (h) Resource sharing agreements.                      be made applicable, in whole or in part,              § 199.14(a)(2)(ix)(A)(3)(i) which per visit
                                                  Under the TRICARE program, any                          to health care services inside the                    fee will apply on a weekly basis.
                                                  military medical treatment facility                     military medical treatment facility.                     (iv) Emergency room visits.
                                                  (MTF) commander may establish                              (j) Pharmacy services. Pharmacy                       (v) Urgent care center visits.
                                                  resource sharing agreements with the                    services under Prime and Select are as                   (vi) Ambulance services. This is for
                                                  applicable managed care support                         provided in the Pharmacy Benefits                     ground ambulance services.
                                                  contractor for the purpose of providing                 Program (see § 199.21).                                  (vii) Ambulatory surgery. This is for
                                                  for the sharing of resources between the                   (k) Design of cost sharing structures              facility-based outpatient ambulatory
                                                  two parties. Internal resource sharing                  under TRICARE Prime and TRICARE                       surgery services.
                                                  and external resource sharing                           Select—(1) In general. The design of the                 (viii) Inpatient hospital admissions.
                                                  agreements are authorized. The                          cost sharing structures under TRICARE                    (ix) Skilled nursing facility or
                                                  provisions of this paragraph (h) shall                  Prime and TRICARE Select includes                     rehabilitation facility admissions. This
                                                  apply to resource sharing agreements                    several major factors: beneficiary                    category includes a residential treatment
                                                  under the TRICARE program.                              category (e.g., active duty family                    center, or substance use disorder
                                                    (1) In connection with internal                       member category or retired category,                  rehabilitation facility residential
                                                  resource sharing agreements, beneficiary                and there are some special rules for                  treatment program.
                                                  cost sharing requirements shall be the                  survivors of active duty deceased                        (x) Durable medical equipment,
                                                  same as those applicable to health care                 sponsors and medically retired members                prosthetic devices, and other authorized
                                                  services provided in facilities of the                  and their dependents); date of initial                supplies.
                                                  uniformed services.                                     military affiliation (i.e., before or on or              (xi) Outpatient prescription
                                                    (2) Under internal resource sharing                   after January 1, 2018), category of health            pharmaceuticals. These are addressed in
                                                  agreements, the double coverage                         care service received, and network or                 § 199.21.
                                                  requirements of § 199.8 shall be                        non-network status of the provider.                      (3) Beneficiary categories further
                                                  replaced by the Third Party Collection                     (2) Categories of health care services.            subdivided. For purposes of both
                                                  procedures of 32 CFR part 220, to the                   This paragraph (k)(2) describes the                   TRICARE Prime and TRICARE Select,
                                                  extent permissible under such part. In                  categories of health care services                    enrollment fees and cost sharing by
                                                  such a case, payments made to a                         relevant to determining copayment                     beneficiary category (e.g., active duty
                                                  resource sharing agreement provider                     amounts.                                              family member category or retired
                                                  through the TRICARE managed care                           (i) Preventive care visits. These are              category) are further differentiated
                                                  support contractor shall be deemed to                   outpatient visits and related services                between two groups:
                                                  be payments by the MTF concerned.                       described in paragraph (f)(2) of this                    (i) Group A consists of Prime or Select
                                                    (3) Under internal or external resource               section. There are no cost sharing                    enrollees whose sponsor originally
                                                  sharing agreements, the commander of                    requirements for preventive care listed               enlisted or was appointed in a
                                                  the MTF concerned may authorize the                     under §§ 199.4(e)(28)(i) through (iv) and             uniformed service before January 1,
                                                  provision of services, pursuant to the                  199.17(f)(2). Beneficiaries shall not be              2018.
                                                  agreement, to Medicare-eligible                         required to pay any portion of the cost                  (ii) Group B consists of Prime or
                                                  beneficiaries, if such services are not                 of these preventive services even if the              Select enrollees whose sponsor
                                                  reimbursable by Medicare, and if the                    beneficiary has not satisfied any                     originally enlisted or was appointed in
                                                  commander determines that this will                     applicable deductible for that year.                  a uniformed service on or after January
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                                                  promote the most cost-effective                            (ii) Primary care outpatient visits.               1, 2018.
                                                  provision of services under the                         These are outpatient visits, not                         (l) Enrollment fees and cost sharing
                                                  TRICARE program.                                        occurring in an ER or urgent care center,             (including deductibles and catastrophic
                                                    (4) Under external resource sharing                   with the following provider specialties:              cap) amounts. This paragraph (l)
                                                  agreements, there is no cost sharing                       (A) General Practice.                              provides enrollment fees and cost
                                                  applicable to services provided by                         (B) Family Practice.                               sharing requirements applicable to
                                                  military facility personnel. Cost sharing                  (C) Internal Medicine.                             TRICARE Prime and TRICARE Select
                                                  for non-MTF institutional and related                      (D) OB/GYN.                                        enrollees.


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                        45453

                                                    (1) Enrollment fee and cost sharing                   fee and catastrophic cap adjustment                      (4) Special transition rule for the last
                                                  under TRICARE Prime. (i) For Group A                    shall not apply to survivors of active                quarter of calendar year 2017. In order
                                                  enrollees:                                              duty deceased sponsors and medically                  to transition enrollment fees,
                                                    (A) There is no enrollment fee for the                retired Uniformed Services members                    deductibles, and catastrophic caps from
                                                  active duty family member category.                     and their dependents.                                 a fiscal year basis to a calendar year
                                                    (B) The retired category enrollment                      (B) The cost sharing amounts for                   basis, the following special rules apply
                                                  fee in calendar year 2018 is equal to the               network care for Group A enrollees are                for the last quarter of calendar year
                                                  Prime enrollment fee for fiscal year                    calculated for each category of care                  2017:
                                                  2017, indexed to calendar year 2018 and                 described in paragraph (k)(2) of this                    (A) A Prime enrollee’s enrollment fee
                                                  thereafter in accordance with 10 U.S.C.                 section by taking into account all                    for the quarter is one-fourth of the
                                                  1097. The Assistant Secretary of Defense                applicable statutory provisions,                      enrollment fee for fiscal year 2017.
                                                  (Health Affairs) may exempt survivors                   including 10 U.S.C. chapter 55, as if                    (B) The deductible amount and the
                                                  of active duty deceased sponsors and                    TRICARE Extra and Standard programs                   catastrophic cap amount for fiscal year
                                                  medically retired Uniformed Services                    were still being implemented. When                    2017 will be applicable to the 15-month
                                                  members and their dependents from                       determined practicable, including                     period of October 1, 2016 through
                                                  future increases in enrollment fees. The                efficiency and effectiveness in                       December 31, 2017.
                                                  Assistant Secretary of Defense (Health                  administration, the amounts established                  (m) Limit on out-of-pocket costs under
                                                  Affairs) may also waive the enrollment                  are converted to fixed dollar amounts                 TRICARE Prime and TRICARE Select.
                                                  fee requirements for Medicare-eligible                  for each category of care for which a                 For the purpose of this paragraph (m),
                                                  beneficiaries.                                          fixed dollar amount is established by 10              out-of-pocket costs means all payments
                                                    (C) The cost sharing amounts are                      U.S.C. 1075. When determined not to be                required of beneficiaries under
                                                  established annually in connection with                 practicable, as in the categories of care             paragraph (l) of this section, including
                                                  the open season enrollment period. An                   including ambulatory surgery, inpatient               enrollment fees, deductibles, and cost-
                                                  amount is established for each category                 admissions, and inpatient skilled                     sharing amounts, with the exception of
                                                  of care identified in paragraph (k)(2) of               nursing/rehabilitation admissions, the                point-of-service charges. In any case in
                                                  this section, taking into account all                   calculated cost-sharing amounts are not               which a family reaches their applicable
                                                  applicable statutory provisions,                        converted to fixed dollar amounts. The                catastrophic cap, all remaining
                                                  including 10 U.S.C. chapter 55. The                     fixed dollar amount for each category is              payments that would have been
                                                  amount for each category of care may                    set prospectively for each calendar year              required of the beneficiary under
                                                  not exceed the amount for Group B as                    as the amount (rounded down to the                    paragraph (l) of this section for
                                                  set forth in 10 U.S.C. 1075a.                           nearest dollar amount) equal to 15% for               authorized care, with the exception of
                                                    (D) The catastrophic cap is $1,000 for                enrollees in the active duty family                   applicable point-of-service charges
                                                  active duty families and $3,000 for                     beneficiary category or 20% for                       pursuant to paragraph (l)(1)(iii) of this
                                                  retired category families.                              enrollees in the retired beneficiary                  section, will be paid by the program for
                                                    (ii) For Group B enrollees, the                       category of the projected average                     the remainder of that calendar year.
                                                  enrollment fee, catastrophic cap and                    allowable payment amount for each                        (n) Additional health care
                                                  cost sharing amounts are as set forth in                category of care during the year, as                  management requirements under
                                                  10 U.S.C. 1075a.                                        estimated by the Director. The projected              TRICARE Prime. Prime has additional,
                                                    (iii) For both Group A and Group B,                   average allowable payment amount for                  special health care management
                                                  for health care services obtained by a                  primary care (including urgent care) and              requirements not applicable under
                                                  Prime enrollee but not obtained in                      specialty care outpatient appointments                TRICARE Select.
                                                  accordance with the rules and                           include payments for ancillary services                  (1) Primary care manager. (i) All
                                                  procedures of Prime (e.g. failure to                    (e.g., laboratory and radiology services)             active duty members and Prime
                                                  obtain a primary care manager referral                  that are provided in connection with the              enrollees will be assigned a primary
                                                  when such a referral is required or                     respective outpatient visit. As such,                 care manager pursuant to a system
                                                  seeing a non-network provider when                      there is no separate cost sharing for                 established by the Director, and
                                                  Prime rules require use of a network                    these ancillary services.                             consistent with the access standards in
                                                  provider and one is available) will not                    (C) The cost share for care received               paragraph (p)(5)(i) of this section. The
                                                  be paid under Prime rules but may be                    from non-network providers is as                      primary care manager may be an
                                                  covered by the point-of-service option.                 provided in § 199.4.                                  individual, physician, a group practice,
                                                  For services obtained under the point-                     (D) The annual deductible amount is                a clinic, a treatment site, or other
                                                  of-service option, the deductible is $300               as provided in 10 U.S.C. 1079 or 1086.                designation. The primary care manager
                                                  per person and $600 per family. The                        (ii) For Group B enrollees, the                    may be part of the MTF or the Prime
                                                  beneficiary cost share is 50 percent of                 enrollment fee, annual deductible for                 civilian provider network. The enrollee
                                                  the allowable charges for inpatient and                 services received while in an outpatient              will be given the opportunity to register
                                                  outpatient care, after the deductible.                  status, catastrophic cap and cost sharing             a preference for primary care manager
                                                  Point-of-service charges do not count                   amounts are as provided in 10 U.S.C.                  from a list of choices provided by the
                                                  against the annual catastrophic cap.                    1075 and as consistent with this section.             Director. This preference will be entered
                                                    (2) Enrollment fee and cost sharing                      (3) Special cost-sharing rules. (A)                on a TRICARE Prime enrollment form or
                                                  under TRICARE Select. (i) For Group A                   There is no separate cost-sharing                     similar document. Preference requests
                                                  enrollees:                                              applicable to ancillary health care                   will be considered, but primary care
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                                                    (A) The enrollment fee in calendar                    services obtained in conjunction with                 manager assignments will be subject to
                                                  years 2018 through 2020 is zero and the                 an outpatient primary or specialty care               availability under the MTF beneficiary
                                                  catastrophic cap is as provided in 10                   visit under TRICARE Prime or from                     category priority system under
                                                  U.S.C. 1079 or 1086. The enrollment fee                 network providers under TRICARE                       paragraph (d) of this section and subject
                                                  and catastrophic cap in 2021 and                        Select.                                               to other operational requirements. (ii)
                                                  thereafter for certain beneficiaries in the                (B) Cost-sharing for maternity care                Prime enrollees who are dependents of
                                                  retired category is as provided in 10                   services shall be determined in                       active duty members in pay grades E–
                                                  U.S.C. 1075(e), except the enrollment                   accordance with § 199.4(e)(16).                       1 through E–4 shall have priority over


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                                                  45454            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  other active duty dependents for                        support contractor before referring a                 discretion exercised by the TRICARE
                                                  enrollment with MTF PCMs, subject to                    patient to a network specialty care                   Regional Directors, and established in
                                                  MTF capacity.                                           provider. Such preauthorization is only               regional policy or memoranda of
                                                     (2) Referral and preauthorization                    required with respect to a primary care               understanding, specialist providers may
                                                  requirements. (i) Under TRICARE Prime                   manager’s referral for:                               be permitted to refer patients for
                                                  there are certain procedures for referral                  (A) Inpatient hospitalization;                     additional specialty consultation
                                                  and preauthorization.                                      (B) Inpatient care at a skilled nursing            appointment services within the
                                                     (A) For the purpose of this paragraph                facility;                                             TRICARE contractor’s network without
                                                  (n)(2), referral addresses the issue of                    (C) Inpatient care at a rehabilitation             prior authorization by primary care
                                                  who will provide authorized health care                 facility; and                                         managers.
                                                  services. In many cases, Prime                             (D) Inpatient care at a residential                   (iv) The following procedures will
                                                  beneficiaries will be referred by a                     treatment facility.                                   apply to health care referrals under
                                                  primary care manager to a medical                          (v) The restrictions in paragraph                  TRICARE Prime:
                                                  department of an MTF if the type of care                (n)(2)(iv) of this section on                            (A) The first priority for referral for
                                                  needed is available at the MTF. In such                 preauthorization requirements do not                  specialty care or inpatient care will be
                                                  a case, failure to adhere to that referral              apply to any preauthorization                         to the local MTF (or to any other MTF
                                                  will result in the care being subject to                requirements that are generally                       in which catchment area the enrollee
                                                  point-of-service charges. In other cases,               applicable under TRICARE,                             resides).
                                                  a referral may be to the civilian provider              independent of TRICARE Prime                             (B) If the local MTF(s) are unavailable
                                                  network, and again, point-of-service                    referrals, such as:                                   for the services needed, but there is
                                                  charges would apply to a failure to                        (A) Under the Pharmacy Benefits                    another MTF at which the needed
                                                  follow the referral.                                    Program under 10 U.S.C. 1074g and                     services can be provided, the enrollee
                                                     (B) In contrast to referral,                         § 199.21.                                             may be required to obtain the services
                                                  preauthorization addresses the issue of                    (B) For laboratory and other ancillary             at that MTF. However, this requirement
                                                  whether particular services may be                      services.                                             will only apply to the extent that the
                                                  covered by TRICARE, including                              (C) Durable medical equipment.                     enrollee was informed at the time of (or
                                                  whether they appear necessary and                          (vi) The cost-sharing requirement for              prior to) enrollment that mandatory
                                                  appropriate in the context of the                       a beneficiary enrolled in TRICARE                     referrals might be made to the MTF
                                                  patient’s diagnosis and circumstances.                  Prime who does not obtain a referral for              involved for the service involved.
                                                  A major purpose of preauthorization is                  care when it is required, including care                 (C) If the needed services are available
                                                  to prevent surprises about coverage                     from a non-network provider, is as                    within civilian preferred provider
                                                  determinations, which are sometimes                     provided in paragraph (l)(1)(iv) of this              network serving the area, the enrollee
                                                  dependent on particular details                         section concerning point-of-service care.             may be required to obtain the services
                                                  regarding the patient’s condition and                      (vii) In the case of care for which                from a provider within the network.
                                                  circumstances. While TRICARE Prime                      preauthorization is not required under                Subject to availability, the enrollee will
                                                  has referral requirements that do not                   paragraph (n)(2)(iv) of this section, the             have the freedom to choose a provider
                                                  exist for TRICARE Select, TRICARE                       Director may authorize a managed care                 from among those in the network.
                                                  Select has some preauthorization                        support contractor to offer a voluntary                  (D) If the needed services are not
                                                  requirements that do not exist for                      pre-authorization program to enable                   available within the civilian preferred
                                                  TRICARE Prime.                                          beneficiaries and providers to confirm                provider network serving the area, the
                                                     (ii) Except as otherwise provided in                 covered benefit status and/or medical                 enrollee may be required to obtain the
                                                  this paragraph (n)(2), a beneficiary                    necessity or to understand the criteria               services from a designated civilian
                                                  enrolled in TRICARE Prime is required                   that will be used by the managed care                 provider outside the area. However, this
                                                  to obtain a referral for care through a                 support contractor to adjudicate the                  requirement will only apply to the
                                                  designated primary care manager (or                     claim associated with the proposed care.              extent that the enrollee was informed at
                                                  other authorized care coordinator) prior                A network provider may not be required                the time of (or prior to) enrollment that
                                                  to obtaining care under the TRICARE                     to use such a program with respect to                 mandatory referrals might be made to
                                                  program.                                                a referral.                                           the provider involved for the service
                                                     (iii) There is no referral requirement                  (3) Restrictions on the use of                     involved (with the provider and service
                                                  under paragraph (n)(2)(i) of this section               providers. The requirements of this                   either identified specifically or in
                                                  in the following circumstances:                         paragraph (n)(3) shall be applicable to               connection with some appropriate
                                                     (A) In emergencies;                                  health care utilization under TRICARE                 classification).
                                                     (B) For urgent care services for a                   Prime, except in cases of emergency                      (E) In cases in which the needed
                                                  certain number of visits per year (zero                 care and under point-of-service option                health care services cannot be provided
                                                  to unlimited), with the number                          (see paragraph (n)(4) of this section).               pursuant to the procedures identified in
                                                  specified by the Director and notice                       (i) Prime enrollees must obtain all                paragraphs (n)(3)(iv)(A) through (D) of
                                                  provided in connection with the open                    primary health care from the primary                  this section, the enrollee will receive
                                                  season enrollment period preceding the                  care manager or from another provider                 authorization to obtain services from a
                                                  plan year; and                                          to which the enrollee is referred by the              TRICARE-authorized civilian
                                                     (C) In any other special circumstances               primary care manager or otherwise                     provider(s) of the enrollee’s choice not
                                                  identified by the Director, generally                   authorized.                                           affiliated with the civilian preferred
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                                                  with notice provided in connection with                    (ii) For any necessary specialty care              provider network.
                                                  the open season enrollment period for                   and non-emergent inpatient care, the                     (iv) When Prime is operating in non-
                                                  the plan year.                                          primary care manager or other                         catchment areas, the requirements in
                                                     (iv) A primary care manager who                      authorized individual will assist in                  paragraphs (n)(3)(iv)(B) through (E) of
                                                  believes a referral to a specialty care                 making an appropriate referral.                       this section shall apply.
                                                  provider is medically necessary and                        (iii) Though referrals for specialty care             (4) Point-of-service option. TRICARE
                                                  appropriate need not obtain pre-                        are generally the responsibility of the               Prime enrollees retain the freedom to
                                                  authorization from the managed care                     primary care managers, subject to                     obtain services from civilian providers


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                      45455

                                                  on a point-of service basis. Any health                 enroll in a plan may newly enroll, dis-               providers must follow numerous rules
                                                  care services obtained by a Prime                       enroll, or modify a previous enrollment               and procedures of the TRICARE
                                                  enrollee, but not obtained in accordance                during the plan year. Initial payment of              program, on matters of professional
                                                  with the rules and procedures of Prime,                 the applicable enrollment fee shall be                judgment and professional practice, the
                                                  will be covered by the point-of-service                 collected for new enrollments in                      network provider is independent and
                                                  option. In such cases, all requirements                 accordance with established procedures.               not operating under the direction and
                                                  applicable to health benefits under                     Any applicable enrollment fee will be                 control of the Department of Defense.
                                                  § 199.4 shall apply, except that there                  pro-rated. A beneficiary who dis-enrolls                (2) Utilization management policies.
                                                  shall be higher deductible and cost                     without enrolling at the same time in                 Preferred providers are required to
                                                  sharing requirements (as set forth in                   another plan is not eligible to enroll in             follow the utilization management
                                                  paragraph (l)(1)(iii)) of this section).                a plan later in the same plan year unless             policies and procedures of the TRICARE
                                                  However, Prime rules may cover such                     there is another qualifying event. A                  program. These policies and procedures
                                                  services if the enrollee did not know                   beneficiary who is dis-enrolled for                   are part of discretionary judgments by
                                                  and could not reasonably have been                      failure to pay a required enrollment fee              the Department of Defense regarding the
                                                  expected to know that the services were                 installment is not eligible to re-enroll in           methods of delivering and financing
                                                  not obtained in accordance with the                     a plan later in the same plan year unless             health care services that will best
                                                  utilization management rules and                        there is another qualifying event.                    achieve health and economic policy
                                                  procedures of Prime.                                    Generally, the effective date of coverage             objectives.
                                                     (5) Prime travel benefit. In accordance              will coincide with the date of the                      (3) Quality assurance requirements. A
                                                  with guidelines issues by the Assistant                 qualifying event.                                     number of quality assurance
                                                  Secretary of Defense (Health Affairs),                     (3) Installment payments of                        requirements and procedures are
                                                  certain travel expenses may be                          enrollment fee. The Director will                     applicable to preferred network
                                                  reimbursed when a TRICARE Prime                         establish procedures for installment                  providers. These are for the purpose of
                                                  enrollee is referred by the primary care                payments of enrollment fees. (4) Effect               assuring that the health care services
                                                  manager for medically necessary                         of failure to enroll. Beneficiaries eligible          paid for with government funds meet
                                                  specialty care more than 100 miles away                 to enroll in Prime or Select and who do               the standards called for in the contract
                                                  from the primary care manager’s office.                 not enroll will no longer have coverage               and provider agreement.
                                                  Such guidelines shall be consistent with                under the TRICARE program until the                     (4) Provider qualifications. All
                                                  appropriate provisions of generally                     next annual open season enrollment or                 preferred providers must meet the
                                                  applicable Department of Defense rules                  they have a qualifying event, except that             following qualifications:
                                                  and procedures governing travel                         they do not lose any statutory eligibility              (i) They must be TRICARE-authorized
                                                  expenses.                                               for space-available care in military                  providers and TRICARE- participating
                                                     (o) TRICARE program enrollment                       medical treatment facilities. There is a              providers. In addition, a network
                                                  procedures. There are certain                           limited grace period exception to this                provider may not require payment from
                                                  requirements pertaining to procedures                   enrollment requirement for calendar                   the beneficiary for any excluded or
                                                  for enrollment in TRICARE Prime,                        year 2018, as provided in section                     excludable services that the beneficiary
                                                  TRICARE Select, and TRICARE Prime                       701(d)(3) of the National Defense                     received from the network provider (i.e.,
                                                  Remote for Active Duty Family                           Authorization Act for Fiscal Year 2017.               the beneficiary will be held harmless)
                                                  Members. (These procedures do not                          (5) Automatic enrollment for certain               except as follows:
                                                  apply to active duty members, whose                     dependents. Under 10 U.S.C. 1097a, in                   (A) If the beneficiary did not inform
                                                  enrollment is mandatory and                             the case of dependents of active duty                 the provider that he or she was a
                                                  automatic.)                                             members in the grade of E–1 to E–4,                   TRICARE beneficiary, the provider may
                                                     (1) Annual open season enrollment.                   such dependents who reside in a                       bill the beneficiary for services
                                                  (i) As a general rule, enrollment (or a                 catchment area of a military treatment                provided.
                                                  modification to a previous enrollment)                  facility shall be enrolled in TRICARE                   (B) If the beneficiary was informed in
                                                  must occur during the open season                       Prime. The Director may provide for the               writing that the specific services were
                                                  period prior to the plan year, which is                 automatic enrollment in TRICARE                       excluded or excludable from TRICARE
                                                  on a calendar year basis. The open                      Prime for such dependents of active                   coverage and the beneficiary agreed in
                                                  season enrollment period will be of at                  duty members in the grade of E–5 and                  writing, in advance of the services being
                                                  least 30 calendar days duration. An                     higher. In any case of automatic                      provided, to pay for the services, the
                                                  enrollment choice will be applicable for                enrollment under this paragraph (o)(5),               provider may bill the beneficiary.
                                                  the plan year.                                          the member will be provided written                     (ii) All physicians in the preferred
                                                     (ii) Open season enrollment                          notice and the automatic enrollment                   provider network must have staff
                                                  procedures may include automatic re-                    may be cancelled at the election of the               privileges in a hospital accredited by
                                                  enrollment in the same plan for the next                member.                                               The Joint Commission (TJC) or other
                                                  plan year for enrollees or sponsors that                   (6) Grace periods. The Director may                accrediting body determined by the
                                                  will occur in the event the enrollee does               make provisions for grace periods for                 Director. This requirement may be
                                                  not take other action during the open                   enrollment-related actions to facilitate              waived in any case in which a
                                                  season period.                                          effective operation of the enrollment                 physician’s practice does not include
                                                     (2) Exceptions to the calendar year                  program.                                              the need for admitting privileges in such
                                                  enrollment process. The Director will                      (p) Civilian preferred provider                    a hospital, or in locations where no
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                                                  identify certain qualifying events that                 networks. A major feature of the                      accredited facility exists. However, in
                                                  may be the basis for a change in                        TRICARE program is the civilian                       any case in which the requirement is
                                                  enrollment status during a plan year,                   preferred provider network.                           waived, the physician must comply
                                                  such as a change in eligibility status,                    (1) Status of network providers.                   with alternative qualification standards
                                                  marriage, divorce, birth of a new family                Providers in the preferred provider                   as are established by the Director.
                                                  member, relocation, loss of other health                network are not employees or agents of                  (iii) All preferred providers must
                                                  insurance, or other events. In the case of              the Department of Defense or the United               agree to follow all quality assurance,
                                                  such an event, a beneficiary eligible to                States Government. Although network                   utilization management, and patient


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                                                  45456            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  referral procedures established pursuant                   (ii) The wait time for an appointment                 (i) The provider must meet all
                                                  to this section, to make available to                   for a well-patient visit or a specialty               applicable requirements in paragraph
                                                  designated DoD utilization management                   care referral shall not exceed four                   (p)(4) of this section.
                                                  or quality monitoring contractors                       weeks; for a routine visit, the wait time                (ii) The provider must agree to follow
                                                  medical records and other pertinent                     for an appointment shall not exceed one               all quality assurance and utilization
                                                  records, and to authorize the release of                week; and for an urgent care visit the                management procedures established
                                                  information to MTF Commanders                           wait time for an appointment shall                    pursuant to this section.
                                                  regarding such quality assurance and                    generally not exceed 24 hours.                           (iii) The provider must be a
                                                  utilization management activities.                         (iii) Emergency services shall be                  participating provider under TRICARE
                                                     (iv) All preferred network providers                 available and accessible to handle                    for all claims.
                                                  must be Medicare participating                          emergencies (and urgent care visits if                   (iv) The provider must meet all other
                                                  providers, unless this requirement is                   not available from other primary care                 qualification requirements, and agree to
                                                  waived based on extraordinary                           providers pursuant to paragraph                       all other rules and procedures, that are
                                                  circumstances. This requirement that a                  (p)(5)(ii) of this section), within the               established, publicly announced, and
                                                  provider be a Medicare participating                    service area 24 hours a day, seven days               uniformly applies by the Director (or
                                                  provider does not apply to providers                    a week.                                               other authorized official).
                                                  who not eligible to be participating                       (iv) The network shall include a                      (v) The provider must sign a preferred
                                                  providers under Medicare.                               sufficient number and mix of board                    provider network agreement covering all
                                                     (v) The network provider must be                     certified specialists to meet reasonably              applicable requirements. Such
                                                  available to all TRICARE beneficiaries.                 the anticipated needs of enrollees.                   agreements will be for a duration of one
                                                     (vi) The provider must agree to accept               Travel time for specialty care shall not              year, are renewable, and may be
                                                  the same payment rates negotiated for                   exceed one hour under normal                          canceled by the provider or the Director
                                                  Prime enrollees for any person whose                    circumstances, unless a longer time is                (or other authorized official) upon
                                                  care is reimbursable by the Department                  necessary because of the absence of                   appropriate notice to the other party.
                                                  of Defense, including, for example,                     providers (including providers not part               The Director shall establish an
                                                  Select participants, supplemental care                  of the network) in the area. This                     agreement model or other guidelines to
                                                  cases, and beneficiaries from outside the               requirement does not apply under the                  promote uniformity in the agreements.
                                                  area.                                                   Specialized Treatment Services                           (2) In addition to the above
                                                     (vii) All preferred providers must                   Program.                                              requirements, the Director, or designee,
                                                  meet all other qualification                               (v) Office waiting times in                        may establish additional categories of
                                                  requirements, and agree to comply with                  nonemergency circumstances shall not                  preferred providers of high quality/high
                                                  all other rules and procedures                          exceed 30 minutes, except when                        value that require additional
                                                  established for the preferred provider                  emergency care is being provided to                   qualifications.
                                                  network.                                                patients, and the normal schedule is                     (r) General fraud, abuse, and conflict
                                                     (viii) In locations where TRICARE                    disrupted.                                            of interest requirements under TRICARE
                                                  Prime is not available, a TRICARE                          (6) Special reimbursement methods                  program. All fraud, abuse, and conflict
                                                  provider network will, to the extent                    for network providers. The Director,                  of interest requirements for the basic
                                                  practicable, be available for TRICARE                   may establish, for preferred provider                 CHAMPUS program, as set forth in this
                                                  Select enrollees. In these locations, the               networks, reimbursement rates and                     part (see especially applicable
                                                  minimal requirements for network                        methods different from those                          provisions of § 199.9) are applicable to
                                                  participation are those set forth in                    established pursuant to § 199.14. Such                the TRICARE program.
                                                  paragraph (p)(4)(i) of this section. Other              provisions may be expressed in terms of                  (s) [Reserved]
                                                  requirements of this paragraph (p) will                 percentage discounts off CHAMPUS                         (t) Inclusion of Department of
                                                  apply unless waived by the Director.                    allowable amounts, or in other terms. In              Veterans Affairs Medical Centers in
                                                     (5) Access standards. Preferred                      circumstances in which payments are                   TRICARE networks. TRICARE preferred
                                                  provider networks will have attributes                  based on hospital-specific rates (or other            provider networks may include
                                                  of size, composition, mix of providers                  rates specific to particular institutional            Department of Veterans Affairs health
                                                  and geographical distribution so that the               providers), special reimbursement                     facilities pursuant to arrangements,
                                                  networks, coupled with the MTF                          methods may permit payments based on                  made with the approval of the Assistant
                                                  capabilities (when applicable), can                     discounts off national or regional                    Secretary of Defense (Health Affairs),
                                                  adequately address the health care                      prevailing payment levels, even if                    between those centers and the Director,
                                                  needs of the enrollees. In the event that               higher than particular institution-                   or designated TRICARE contractor.
                                                  a Prime enrollee seeks to obtain from                   specific payment rates.                                  (u) Care provided outside the United
                                                  the managed care support contractor an                     (q) Preferred provider network                     States. The TRICARE program is not
                                                  appointment for care but is not offered                 establishment. (1) The any qualified                  automatically implemented in all
                                                  an appointment within the access time                   provider method may be used to                        respects outside the United States. This
                                                  standards from a network provider, the                  establish a civilian preferred provider               paragraph (u) sets forth the provisions of
                                                  enrollee will be authorized to receive                  network. Under this method, any                       this section applicable to care received
                                                  care from a non-network provider                        TRICARE-authorized provider that                      outside the United States under the
                                                  without incurring the additional fees                   meets the qualification standards                     following TRICARE health plans.
                                                  associated with point-of-service care.                  established by the Director, or designee,                (1) TRICARE Prime. The Director may,
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                                                  The following are the access standards:                 may become a part of the preferred                    in conjunction with implementation of
                                                     (i) Under normal circumstances,                      provider network. Such standards must                 the TRICARE program, authorize a
                                                  enrollee travel time may not exceed 30                  be publicly announced and uniformly                   special Prime program for command
                                                  minutes from home to primary care                       applied. Also under this method, any                  sponsored dependents of active duty
                                                  delivery site unless a longer time is                   provider who meets all applicable                     members who accompany the members
                                                  necessary because of the absence of                     qualification standards may not be                    in their assignments in foreign
                                                  providers (including providers not part                 excluded from the preferred provider                  countries. Under this special program, a
                                                  of the network) in the area.                            network. Qualifications include:                      preferred provider network may be


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                       45457

                                                  established through contracts or                        information will include a description                ■ g. Removing the semicolon at the end
                                                  agreements with selected health care                    of the preferred provider network                     of paragraph (p)(2)(iii) and adding ‘‘;
                                                  providers. Under the network, Prime                     program and other pertinent                           and’’ in its place;
                                                  covered services will be provided to the                information. The Director shall also                  ■ h. Revising paragraph (p)(2)(iv); and
                                                  enrolled covered dependents subject to                  issue policies, instructions, and                     ■ i. Removing paragraph (p)(2)(v).
                                                  applicable Prime deductibles,                           guidelines necessary to implement this                  The revisions and additions read as
                                                  copayments, and point-of-service                        special program.                                      follows:
                                                  charges. To the extent practicable, rules                  (3) TRICARE for Life. The TRICARE
                                                                                                                                                                § 199.20 Continued Health Care Benefit
                                                  and procedures applicable to TRICARE                    for Life (TFL) option shall be available
                                                                                                                                                                Program (CHCBP).
                                                  Prime under this section shall apply                    outside the United States. Eligible TFL
                                                  unless specific exemptions are granted                  beneficiaries may receive covered                        (a) Purpose. The CHCBP is a
                                                  in writing by the Director. The use of                  services and supplies authorized under                premium-based temporary health care
                                                  this authority by the Director for any                  § 199.4, subject to the applicable                    coverage program, authorized by 10
                                                  particular geographical area will be                    catastrophic cap, deductibles and cost-               U.S.C. 1078a, and available to
                                                  published on the primary publicly                       shares under § 199.4, whether received                individuals who meet the eligibility and
                                                  available Internet Web site of the                      from a network provider or any                        enrollment criteria as set forth in
                                                  Department and on the publicly                          authorized TRICARE provider not in a                  paragraph (d)(1) of this section. The
                                                  available Internet Web site of the                      preferred provider network. However, if               CHCBP is not part of the TRICARE
                                                  managed care support contractor that                    a TFL beneficiary receives covered                    program. However, as set forth in this
                                                  has established the provider network                    services from a PPN provider, the                     section, it functions under similar rules
                                                  under the TRICARE program. Published                    beneficiary’s out-of-pocket costs will                and procedures to the TRICARE Select
                                                  information will include a description                  generally be lower.                                   program. Because the purpose of the
                                                  of the preferred provider network                          (v) Administration of the TRICARE                  CHCBP is to provide a continuation
                                                  program and other pertinent                             program in the state of Alaska. In view               health care benefit for Department of
                                                  information. The Director shall also                    of the unique geographical and                        Defense and the other uniformed
                                                  issue policies, instructions, and                       environmental characteristics impacting               services beneficiaries losing eligibility,
                                                  guidelines necessary to implement this                  the delivery of health care in the state              it will be administered so that it
                                                  special program.                                        of Alaska, administration of the                      appears, to the maximum extent
                                                                                                          TRICARE program in the state of Alaska                practicable, to be part of the TRICARE
                                                     (2) TRICARE Select. The TRICARE
                                                                                                          will not include financial underwriting               Select program. Medical coverage under
                                                  Select option shall be available outside
                                                                                                          of the delivery of health care by a                   this program will be the same as the
                                                  the United States except that a preferred
                                                                                                          TRICARE contractor. All other                         benefits payable under the TRICARE
                                                  provider network of providers shall only
                                                                                                          provisions of this section shall apply to             Select program. There is a cost for
                                                  be established in areas where the
                                                                                                          administration of the TRICARE program                 enrollment to the CHCBP and these
                                                  Director determines that it is
                                                                                                          in the state of Alaska as they apply to               premium costs must be paid by CHCBP
                                                  economically in the best interest of the
                                                                                                          the other 49 states and the District of               enrollees before any care may be cost
                                                  Department of Defense. In such a case,
                                                                                                          Columbia.                                             shared.
                                                  the Director shall establish a preferred
                                                  provider network through contracts or                      (w) Administrative procedures. The                 *      *     *     *     *
                                                  agreements with selected health care                    Assistant Secretary of Defense (Health                   (d) * * *
                                                  providers for eligible beneficiaries to                 Affairs), the Director, and MTF                          (7) * * *
                                                  receive covered benefits subject to the                 Commanders (or other authorized                          (i) * * *
                                                  enrollment and cost-sharing amounts                     officials) are authorized to establish                   (D) In the case of a former spouse of
                                                  applicable to the specific category of                  administrative requirements and                       a member or former member (other than
                                                  beneficiary. When an eligible                           procedures, consistent with this section,             the former spouse whose marriage was
                                                  beneficiary, other than a TRICARE for                   this part, and other applicable DoD                   dissolved after the separation of the
                                                  Life beneficiary, receives covered                      Directives or Instructions, for the                   member from the service unless such
                                                  services from an authorized TRICARE                     implementation and operation of the                   separation was by retirement), the
                                                  non-network provider, including in                      TRICARE program.                                      period of coverage under the CHCBP is
                                                  areas where a preferred provider                                                                              unlimited, if former spouse:
                                                                                                          § 199.18    [Removed and Reserved]                       (1) Has not remarried before age of 55
                                                  network has not been established by the
                                                  Director, the beneficiary shall be subject              ■ 10. Section 199.18 is removed and                   after the marriage to the member or
                                                  to cost-sharing amounts applicable to                   reserved.                                             former member was dissolved; and
                                                  out-of-network care. To the extent                      ■ 11. Section 199.20 is amended by:
                                                                                                                                                                   (2) Was eligible for TRICARE as a
                                                  practicable, rules and procedures                       ■ a. Revising paragraph (a);
                                                                                                                                                                dependent or enrolled in CHCBP at any
                                                  applicable to TRICARE Select under this                 ■ b. Removing the words ‘‘TRICARE
                                                                                                                                                                time during the 18 month period before
                                                  section shall apply unless specific                     Standard program’’ and adding in their                the date of the divorce, dissolution, or
                                                  exemptions are granted in writing by the                place the words ‘‘TRICARE Select                      annulment; and
                                                  Director. The use of this authority by the              program’’ in paragraph (c);                           *      *     *     *     *
                                                  Director to establish a TRICARE                         ■ c. Revising paragraphs (d)(7)(i)(D)                    (e) * * *
                                                  preferred provider network for any                      introductory text, (d)(7)(i)(D)(1) and (2),              (1) In general. Except as provided in
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                                                  particular geographical area will be                    and (e)(1) and (3);                                   paragraph (e)(2) of this section, the
                                                  published on the primary publicly                       ■ d. Removing the words ‘‘TRICARE                     provisions of § 199.4 shall apply to the
                                                  available Internet Web site of the                      Standard’’ and adding in their place the              CHCBP as they do to TRICARE Select
                                                  Department and on the publicly                          words ‘‘TRICARE Select program’’ in                   under § 199.17.
                                                  available Internet Web site of the                      paragraphs (f) through (n);                           *      *     *     *     *
                                                  managed care support contractor that                    ■ e. Removing and reserving paragraph                    (3) Beneficiary liability. For purposes
                                                  has established the provider network                    (o);                                                  of CHCBP coverage, the beneficiary
                                                  under the TRICARE program. Published                    ■ f. Revising paragraph (p)(1);                       deductible, catastrophic cap and cost


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                                                  45458            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  share provisions of the TRICARE Select                  cost-share (whichever is greater) per                 ■ 13. In § 199.22, paragraph (a) is
                                                  plan applicable to Group B beneficiaries                prescription for up to a 30-day supply                revised to read as follows:
                                                  under § 199.17(l)(2)(ii) shall apply based              of the pharmaceutical agent.
                                                  on the category of beneficiary (e.g.,                      (iv) For pharmaceutical agents                     § 199.22   TRICARE Retiree Dental Program
                                                                                                          obtained under the TRICARE mail-order                 (TRDP).
                                                  Active Duty Family Member or Retiree
                                                  Family) to which the CHCBP enrollee                     program there is a:                                      (a) Establishment. The TRDP is a
                                                  last belonged, except that for separating                  (A) $20 cost-share per prescription for            premium based indemnity dental
                                                  active duty members, amounts                            up to a 90-day supply of a formulary                  insurance coverage program that will be
                                                  applicable to TRICARE Select Active                     pharmaceutical agent.                                 available to certain retirees and their
                                                  Duty Family Members shall apply. The                       (B) $0.00 cost-share for up to a 90-day            surviving spouses, their dependents,
                                                  premium under paragraph (q) of this                     supply of a generic pharmaceutical                    and certain other beneficiaries, as
                                                  section applies instead of any TRICARE                  agent.                                                specified in paragraph (d) of this
                                                  Select plan enrollment fee under                           (C) $49.00 cost-share for up to a 90-              section. The TRDP is authorized by 10
                                                  § 199.17.                                               day supply of a non-formulary                         U.S.C. 1076c.
                                                                                                          pharmaceutical agent.                                    (1) The Director will, except as
                                                  *      *     *     *    *                                  (D) $0.00 cost-share for smoking                   authorized in paragraph (a)(2) of this
                                                     (p) * * *                                            cessation pharmaceutical agents covered               section, make available a premium
                                                     (1) In general. Special programs                     under the smoking cessation program.                  based indemnity dental insurance plan
                                                  established under this part that are not
                                                                                                          *      *     *      *    *                            for eligible TRDP beneficiaries specified
                                                  part of the TRICARE Select program are                     (vi) For TRICARE Prime beneficiaries               in paragraph (d) of this section
                                                  not, unless specifically provided in this               there is no annual deductible applicable              consistent with the provisions of this
                                                  section, available to participants in the               for pharmaceutical agents obtained from               section.
                                                  CHCBP.                                                  retail network pharmacies or the                         (2) The TRDP premium based
                                                     (2) * * *                                            TRICARE mail-order program. However,                  indemnity dental insurance program
                                                     (iv) The TRICARE Prime Program                       for TRICARE Prime beneficiaries who                   under paragraph (a) of this section may
                                                  under § 199.17.                                         obtain formulary or generic                           be provided by allowing eligible
                                                  *      *     *     *    *                               pharmaceutical agents from retail non-                beneficiaries specified in paragraph (d)
                                                  ■ 12. Section 199.21 is amended by:                     network pharmacies, an enrollment year                of this section to enroll in an insurance
                                                  ■ a. Revising paragraphs (i)(2)                         deductible of $300 per person and $600                plan under chapter 89A of title 5,
                                                  introductory text and (i)(2)(i) through                 per family must be met after which                    United States Code that provides
                                                  (iv);                                                   there is a beneficiary cost-share of 50               benefits similar to those benefits
                                                  ■ b. Removing and reserving paragraph                   percent per prescription for up to a 30-              provided under paragraph (f) of this
                                                  (i)(2)(v); and                                          day supply of the pharmaceutical agent.               section. Such enrollment shall be
                                                  ■ c. Revising paragraphs (i)(2)(vi)                        (vii) For TRICARE Select beneficiaries             authorized pursuant to an agreement
                                                  through (viii) and (i)(2)(x)(A).                        the annual deductible which must be                   entered into between the Department of
                                                     The revisions read as follows:                       met before the cost-sharing amounts for               Defense and the Office of Personnel
                                                                                                          pharmaceutical agents in paragraph                    Management which agreement, in the
                                                  § 199.21 TRICARE Pharmacy Benefits                      (i)(2) of this section are applicable is as
                                                  Program.                                                                                                      event of any inconsistency, shall take
                                                                                                          provided for each category of TRICARE                 precedence over provisions in this
                                                  *       *     *   *     *                               Select enrollee in § 199.17(l)(2).                    section.
                                                     (i) * * *                                               (viii) For TRICARE beneficiaries not
                                                     (2) Cost-sharing amounts. Active duty                otherwise qualified to enroll in                      *      *     *      *    *
                                                  members of the uniformed services do                    TRICARE Prime or Select, the annual                   ■ 14. Section 199.24 is amended by
                                                  not pay cost-shares or annual                           deductible which must be met before                   revising paragraphs (a) introductory
                                                  deductibles. For other categories of                    the cost-sharing amounts for                          text, (a)(4)(i) heading, (a)(4)(i)(A),
                                                  beneficiaries, after applicable annual                  pharmaceutical agents in paragraph                    (a)(4)(iv), (c) introductory text, (d)
                                                  deductibles are met, cost-sharing                       (i)(2) of this section are applicable is as           introductory text, (d)(1)(ii) and (iii),
                                                  amounts prior to October 1, 2016, are set               provided in § 199.4(f).                               (d)(2) and (3), (f), and (g)(1) to read as
                                                  forth in this paragraph (i)(2).                         *      *     *      *    *                            follows:
                                                     (i) For pharmaceutical agents obtained                  (x) * * *                                          § 199.24   TRICARE Reserve Select.
                                                  from a military treatment facility, there                  (A) Beginning October 1, 2016, the
                                                  is no cost-sharing or annual deductible.                amounts specified in this paragraph                     (a) Establishment. TRICARE Reserve
                                                     (ii) For pharmaceutical agents                       (i)(2) shall be increased annually by the             Select offers the TRICARE Select self-
                                                  obtained from a retail network                          percentage increase in the cost-of-living             managed, preferred-provider network
                                                  pharmacy there is a:                                    adjustment by which retired pay is                    option under § 199.17 to qualified
                                                     (A) $24.00 cost-share per prescription               increased under 10 U.S.C. 1401a for the               members of the Selected Reserve, their
                                                  required for up to a 30-day supply of a                 year. If the amount of the increase is                immediate family members, and
                                                  formulary pharmaceutical agent.                         equal to or greater than 50 cents, the                qualified survivors under this section.
                                                     (B) $10.00 cost-share per prescription               amount of the increase shall be rounded               *     *     *     *   *
                                                  for up to a 30-day supply of a generic                  to the nearest multiple of $1. If the                   (4) * * *
                                                  pharmaceutical agent.                                   amount of the increase is less than 50                  (i) TRICARE Select rules applicable.
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                                                     (C) $0.00 cost-share for vaccines/                   cents, the increase shall not be made for             (A) Unless specified in this section or
                                                  immunizations authorized as preventive                  that year, but shall be carried over to,              otherwise prescribed by the Director,
                                                  care for eligible beneficiaries.                        and accumulated with, the amount of                   provisions of TRICARE Select under
                                                     (iii) For formulary and generic                      the increase for the subsequent year or               § 199.17 apply to TRICARE Reserve
                                                  pharmaceutical agents obtained from a                   years and made when the aggregate                     Select.
                                                  retail non-network pharmacy, except as                  amount of increases for a year is equal               *     *     *     *   *
                                                  provided in paragraph (i)(2)(vi) of this                to or greater than 50 cents.                            (iv) Benefits. When their coverage
                                                  section, there is a 20 percent or $20.00                *      *     *      *    *                            becomes effective, TRICARE Reserve


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                       45459

                                                  Select beneficiaries receive the                        the member’s/survivor’s family                        managed, preferred-provider network
                                                  TRICARE Select benefit including                        members in TRICARE Reserve Select.                    option under § 199.17 to qualified
                                                  access to military treatment facility                   Procedures may be established for                     members of the Retired Reserve, their
                                                  services and pharmacies, as described in                coverage to be terminated as follows.                 immediate family members, and
                                                  §§ 199.17 and 199.21. TRICARE Reserve                      (i) Coverage shall terminate when                  qualified survivors under this section.
                                                  Select coverage features the deductible,                members or survivors no longer qualify                *       *    *     *    *
                                                  catastrophic cap and cost share                         for TRICARE Reserve Select as specified                  (4) * * *
                                                  provisions of the TRICARE Select plan                   in paragraph (b) of this section, with one               (i) TRICARE Select rules applicable.
                                                  applicable to Group B active duty family                exception. If a member is involuntarily               (A) Unless specified in this section or
                                                  members under § 199.17(l)(2)(ii) for both               separated from the Selected Reserve                   otherwise prescribed by the ASD (HA),
                                                  the member and the member’s covered                     under other than adverse conditions, as               provisions of TRICARE Select under
                                                  family members; however, the TRICARE                    characterized by the Secretary                        § 199.17 apply to TRICARE Retired
                                                  Reserve Select premium under                            concerned, and is covered by TRICARE                  Reserve.
                                                  paragraph (c) of this section applies                   Reserve Select on the last day of his or              *       *    *     *    *
                                                  instead of any TRICARE Select plan                      her membership in the Selected                           (iv) Benefits. When their coverage
                                                  enrollment fee under § 199.17. Both the                 Reserve, then TRICARE Reserve Select                  becomes effective, TRICARE Retired
                                                  member and the member’s covered                         coverage may terminate up to 180 days                 Reserve beneficiaries receive the
                                                  family members are provided access                      after the date on which the member was                TRICARE Select benefit including
                                                  priority for care in military treatment                 separated from the Selected Reserve.                  access to military treatment facilities on
                                                  facilities on the same basis as active                  This applies regardless of type of                    a space available basis and pharmacies,
                                                  duty service members’ dependents who                    coverage. This exception expires                      as described in § 199.17. TRICARE
                                                  are not enrolled in TRICARE Prime as                    December 31, 2018.                                    Retired Reserve coverage features the
                                                  described in § 199.17(d)(1)(i)(D).                         (ii) Coverage may terminate for
                                                                                                                                                                deductible, cost sharing, and
                                                                                                          members, former members, and
                                                  *      *     *     *    *                                                                                     catastrophic cap provisions of the
                                                                                                          survivors who gain coverage under
                                                    (c) TRICARE Reserve Select                                                                                  TRICARE Select plan applicable to
                                                                                                          another TRICARE program.
                                                  premiums. Members are charge                               (iii) In accordance with the provisions            Group B retired members and
                                                  premiums for coverage under TRICARE                     of § 199.17(o)(2) coverage terminates for             dependents of retired members under
                                                  Reserve Select that represent 28 percent                members/survivors who fail to make                    § 199.17(l)(2)(ii); however, the TRICARE
                                                  of the total annual premium amount                      premium payments in accordance with                   Reserve Select premium under
                                                  that the Director determines on an                      established procedures.                               paragraph (c) of this section applies
                                                  appropriate actuarial basis as being                       (iv) Coverage may be terminated for                instead of any TRICARE Select plan
                                                  appropriate for coverage under the                      members/survivors upon request at any                 enrollment fee under § 199.17. Both the
                                                  TRICARE Select benefit for the                          time by submitting a completed request                member and the member’s covered
                                                  TRICARE Reserve Select eligible                         in the appropriate format in accordance               family members are provided access
                                                  population. Premiums are to be paid                     with established procedures.                          priority for care in military treatment
                                                  monthly, except as otherwise provided                      (3) Re-enrollment following                        facilities on the same basis as retired
                                                  through administrative implementation,                  termination. Absent a new qualifying                  members and their dependents who are
                                                  pursuant to procedures established by                   event, members/survivors (subject to                  not enrolled in TRICARE Prime as
                                                  the Director. The monthly rate for each                 paragraph (d)(1)(iv) of this section) are             described in § 199.17(d)(1)(i)(E).
                                                  month of a calendar year is one-twelfth                 not eligible to re-enroll in TRICARE                  *       *    *     *    *
                                                  of the annual rate for that calendar year.              Reserve Select until the next annual                     (c) TRICARE Retired Reserve
                                                  *      *     *     *    *                               open season.                                          premiums. Members are charged for
                                                    (d) Procedures. The Director may                      *       *     *     *    *                            coverage under TRICARE Retired
                                                  establish procedures for the following.                    (f) Administration. The Director may               Reserve that represent the full cost of
                                                    (1) * * *                                             establish other rules and procedures for              the program as determined by the
                                                    (ii) Qualifying event. Procedures for                 the effective administration of TRICARE               Director utilizing an appropriate
                                                  qualifying events in TRICARE Select                     Reserve Select, and may authorize                     actuarial basis for the provision of the
                                                  plans under § 199.17(o) shall apply to                  exceptions to requirements of this                    benefits provided under the TRICARE
                                                  TRICARE Reserve Select coverage.                        section, if permitted by law.                         Select program for the TRICARE Retired
                                                  Additionally, the Director may identify                    (g) * * *                                          Reserve eligible beneficiary population.
                                                  other events unique to needs of the                        (1) Coverage. This term means the                  Premiums are to be paid monthly,
                                                  Reserve Components as qualifying                        medical benefits covered under the                    except as otherwise provided through
                                                  events.                                                 TRICARE Select program as further                     administrative implementation,
                                                    (iii) Enrollment. Procedures for                      outlined in § 199.17 whether delivered                pursuant to procedures established by
                                                  enrollment in TRICARE Select plans                      in military treatment facilities or                   the Director. The monthly rate for each
                                                  under § 199.17(o) shall apply to                        purchased from civilian sources.                      month of a calendar year is one-twelfth
                                                  TRICARE Reserve Select enrollment.                      *       *     *     *    *                            of the annual rate for that calendar year.
                                                  Generally, the effective date of coverage               ■ 15. Section 199.25 is amended by                    *       *    *     *    *
                                                  will coincide with the first day of a                   revising paragraphs (a) introductory                     (d) Procedures. The Director may
                                                  month unless enrollment is due to a                     text, (a)(4)(i) heading, (a)(4)(i)(A),                establish procedures for the following.
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                                                  qualifying event and a different date on                (a)(4)(iv), (c) introductory text, (d)                   (1) * * *
                                                  or after the qualifying event is required               introductory text, (d)(1)(ii) and (iii),                 (ii) Qualifying event. Procedures for
                                                  to prevent a lapse in health care                       (d)(2) and (3), (f), and (g)(1) to read as            qualifying events in TRICARE Select
                                                  coverage.                                               follows:                                              plans under § 199.17(o) shall apply to
                                                  *      *     *     *    *                                                                                     TRICARE Retired Reserve coverage.
                                                    (2) Termination. Termination of                       § 199.25    TRICARE Retired Reserve.                     (iii) Enrollment. Procedures for
                                                  coverage for the TRS member/survivor                      (a) Establishment. TRICARE Retired                  enrollment in TRICARE Select plans
                                                  will result in termination of coverage for              Reserve offers the TRICARE Select self-               under § 199.17(o) shall apply to


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                                                  45460            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  TRICARE Retired Reserve enrollment.                     ■ a. Revising paragraphs (a)                          beneficiaries receive the benefit of the
                                                  Generally, the effective date of coverage               introductory text, (a)(4)(i)(C), (a)(4)(i)(D)         TRICARE option that they selected,
                                                  will coincide with the first day of a                   introductory text, and (a)(4)(ii) and (iv);           including, if applicable, access to
                                                  month unless enrollment is due to a                     ■ b. Removing paragraph (a)(4)(v);                    military treatment facilities and
                                                  qualifying event and a different date on                ■ c. Revising paragraphs (c)                          pharmacies. TYA coverage features the
                                                  or after the qualifying event is required               introductory text, (d) introductory text,             cost share, deductible and catastrophic
                                                  to prevent a lapse in health care                       and (d)(1)(ii);                                       cap provisions applicable to Group B
                                                  coverage.                                               ■ d. Removing paragraph (d)(1)(iii);                  beneficiaries based on the program
                                                  *       *     *    *     *                              ■ e. Revising paragraphs (d)(2)                       selected, i.e., the TRICARE Select
                                                    (2) Termination. Termination of                       introductory text, (d)(2)(v), (vi), and               program under § 199.17(l)(2)(ii) or the
                                                  coverage for the TRR member/survivor                    (vii), and (f); and                                   TRICARE Prime program under
                                                  will result in termination of coverage for              ■ f. Removing paragraph (g).                          § 199.17(l)(ii), as well as the status of
                                                  the member’s/survivor’s family                            The revisions read as follows:                      their military sponsor. Access to
                                                  members in TRICARE Retired Reserve.                                                                           military treatment facilities under the
                                                                                                          § 199.26    TRICARE Young Adult.
                                                  Procedures may be established for                                                                             system of access priorities in
                                                                                                             (a) Establishment. The TRICARE                     § 199.17(d)(1) is also based on the
                                                  coverage to be terminated as follows.
                                                     (i) Coverage shall terminate when                    Young Adult (TYA) program offers                      program selected as well as the status of
                                                  members or survivors no longer qualify                  options of medical benefits provided                  the military sponsor. Premiums are not
                                                  for TRICARE Retired Reserve as                          under the TRICARE program to                          credited to deductibles or catastrophic
                                                  specified in paragraph (c) of this                      qualified unmarried adult children of                 caps; however, TYA premiums shall
                                                  section. For purposes of this section, the              TRICARE-eligible uniformed service                    apply instead of any applicable
                                                  member or their survivor no longer                      sponsors who do not otherwise have                    TRICARE Prime or Select enrollment
                                                  qualifies for TRICARE Retired Reserve                   eligibility for medical coverage under a              fee.
                                                  when the member has been eligible for                   TRICARE program at age 21 (23 if
                                                                                                                                                                *       *    *     *     *
                                                  coverage in a health benefits plan under                enrolled in a full-time course of study
                                                                                                          at an approved institution of higher                    (c) TRICARE Young Adult premiums.
                                                  Chapter 89 of Title 5, U.S.C. for more                                                                        Qualified young adult dependents are
                                                  than 60 days. Further, coverage shall                   learning, and the sponsor provides over
                                                                                                          50 percent of the student’s financial                 charged premiums for coverage under
                                                  terminate when the Retired Reserve                                                                            TYA that represent the full cost of the
                                                  member attains the age of 60 or, if                     support), and are under age 26.
                                                                                                                                                                program, including reasonable
                                                  survivor coverage is in effect, when the                *       *    *     *    *                             administrative costs, as determined by
                                                  deceased Retired Reserve member                            (4) * * *                                          the Director utilizing an appropriate
                                                  would have attained the age of 60.                         (i) * * *
                                                                                                                                                                actuarial basis for the provision of
                                                     (ii) Coverage may terminate for                         (C) TRICARE Select is available to all
                                                                                                                                                                TRICARE benefits for the TYA-eligible
                                                  members, former members, and                            TYA-eligible young adult dependents.
                                                                                                                                                                beneficiary population. Separate
                                                  survivors who gain coverage under                          (D) TRICARE Prime is available to
                                                                                                                                                                premiums shall be established for
                                                  another TRICARE program.                                TYA-eligible young adult dependents,
                                                                                                                                                                TRICARE Select and Prime plans. There
                                                     (iii) In accordance with the provisions              provided that TRICARE Prime
                                                                                                                                                                may also be separate premiums based
                                                  of § 199.17(o)(2) coverage terminates for               (including the Uniformed Services
                                                                                                                                                                on the uniformed services sponsor’s
                                                  members/survivors who fail to make                      Family Health Plan) is available in the
                                                                                                                                                                status. Premiums are to be paid
                                                  premium payments in accordance with                     geographic location where the TYA
                                                                                                                                                                monthly, except as otherwise provided
                                                  established procedures.                                 enrollee resides. TYA-eligible young
                                                                                                                                                                through administrative implementation,
                                                     (iv) Coverage may be terminated for                  adults are:
                                                                                                                                                                pursuant to procedures established by
                                                  members/survivors upon request at any                   *       *    *     *    *                             the Director. The monthly rate for each
                                                  time by submitting a completed request                     (ii) Premiums. TYA coverage is a                   month of a calendar year is one-twelfth
                                                  in the appropriate format in accordance                 premium based program that an eligible                of the annual rate for that calendar year.
                                                  with established procedures.                            young adult dependent may purchase.
                                                     (3) Re-enrollment following                                                                                *       *    *     *     *
                                                                                                          There is only individual coverage, and
                                                  termination. Absent a new qualifying                    a premium shall be charged for each                     (d) Procedures. The Director may
                                                  event, members/survivors are not                        dependent even if there is more than                  establish procedures for the following.
                                                  eligible to re-enroll in TRICARE Retired                one qualified dependent in the                           (1) * * *
                                                  Reserve until the next annual open                      uniformed service sponsor’s family that                  (ii) Enrollment. Procedures for
                                                  season.                                                 qualifies for TYA coverage. Dependents                enrollment in TRICARE plans under
                                                  *       *     *    *     *                              qualifying for TYA status can purchase                § 199.17(o) shall apply to a qualified
                                                     (f) Administration. The Director may                 individual TRICARE Select or TRICARE                  dependent purchasing TYA coverage.
                                                  establish other rules and procedures for                Prime coverage (as applicable)                        Generally, the effective date of coverage
                                                  the effective administration of TRICARE                 according to the rules governing the                  will coincide with the first day of a
                                                  Retired Reserve, and may authorize                      TRICARE option for which they are                     month unless enrollment is due to a
                                                  exceptions to requirements of this                      qualified on the basis of their uniformed             qualifying event and a different date on
                                                  section, if permitted by law.                           service sponsor’s TRICARE-eligible                    or after the qualifying event is required
                                                     (g) * * *                                            status (active duty, retired, Selected                to prevent a lapse in health care
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                                                     (1) Coverage. This term means the                    Reserve, or Retired Reserve) and the                  coverage.
                                                  medical benefits covered under the                      availability of a desired option in their                (2) Termination. Procedures may be
                                                  TRICARE Select program as further                       geographic location. Premiums shall be                established for TYA coverage to be
                                                  outlined in § 199.17 whether delivered                  determined in accordance with                         terminated as follows.
                                                  in military treatment facilities or                     paragraph (c) of this section.                        *       *    *     *     *
                                                  purchased from civilian sources.                        *       *    *     *    *                                (v) Coverage may be terminated for
                                                  *       *     *    *     *                                 (iv) Benefits. When their TYA                      young adult dependents upon request at
                                                  ■ 16. Section 199.26 is amended by:                     coverage becomes effective, qualified                 any time by submitting a completed


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                      45461

                                                  request in the appropriate format in                    email Lieutenant Commander John                       this collapse, portions of the adjacent
                                                  accordance with established procedures.                 Bannon, Waterways Management                          sea cliff fell into the ocean, producing
                                                    (vi) In accordance with the provisions                Division, Coast Guard; telephone: 808–                localized waves, and showers of debris.
                                                  of § 199.17(o)(2), coverage terminates for              541–4359, email: John.E.Bannon@                       As of March 2017, a new delta has
                                                  young adult dependents who fail to                      uscg.mil.                                             begun to form at the Kamokuna ocean
                                                  make premium payments in accordance                     SUPPLEMENTARY INFORMATION:                            entry point. This lava delta continues to
                                                  with established procedures.                                                                                  grow and collapse, and cracks parallel
                                                    (vii) Absent a new qualifying event,                  I. Table of Abbreviations                             to the sea cliff surrounding it persist,
                                                  young adults are not eligible to re-enroll              BLS Bureau of Labor Statistics                        indicating further collapses may occur
                                                  in TYA until the next annual open                       COTP Captain of the Port                              with little or no warning.
                                                  season.                                                 DHS Department of Homeland Security                      On March 28, 2017, the Coast Guard
                                                  *     *     *     *    *                                FR Federal Register                                   established a temporary final rule (TFR)
                                                    (f) Administration. The Director may                  NPRM Notice of proposed rulemaking
                                                                                                                                                                and put into place a safety zone for
                                                  establish other processes, policies and                 § Section symbol
                                                                                                          OMB Office of Management and Budget                   mariners near lava entry points to
                                                  procedures for the effective                                                                                  address the hazards of the lava entering
                                                                                                          RFA Regulatory Flexibility Act
                                                  administration of the TYA Program and                   SNPRM Supplemental notice of proposed                 the ocean. The TFR discussed Sector
                                                  may authorize exceptions to                               rulemaking                                          Honolulu’s review of nearly 30 years of
                                                  requirements of this section, if                        TFR Temporary final rule                              delta collapse and ejecta distance
                                                  permitted.                                              U.S.C. United States Code                             observations from the Hawaii Volcano
                                                    Dated: September 20, 2017.                            II. Background Information and                        Observatory records. The TFR was
                                                  Aaron Siegel,                                           Regulatory History                                    published in the April 3, 2017 Federal
                                                  Alternate OSD Federal Register Liaison                                                                        Register (82 FR 16109).
                                                                                                             The Coast Guard is extending, for an
                                                  Officer, Department of Defense.                                                                                  On April 3, 2017, the Coast Guard
                                                                                                          additional six months, an existing
                                                  [FR Doc. 2017–20392 Filed 9–28–17; 8:45 am]                                                                   also published a notice of proposed
                                                                                                          temporary safety zone for the navigable
                                                  BILLING CODE 5001–06–P                                  waters surrounding the entry of lava                  rulemaking (NPRM) to establish a
                                                                                                          from the Kilauea Volcano into the                     permanent safety zone that would
                                                                                                          Pacific Ocean on the southeast side of                encompass all waters extending 300
                                                  DEPARTMENT OF HOMELAND                                  the Island of Hawaii, HI. Extending this              meters (984 feet) in every direction
                                                  SECURITY                                                safety zone ensures mariners remain                   around all entry points of lava flow into
                                                                                                          safe from the potential hazards                       the navigable waters surrounding the
                                                  Coast Guard                                             associated with molten lava entering the              entry of lava from the Kilauea Volcano
                                                                                                          ocean while the proposed rule is being                into the Pacific Ocean on the southeast
                                                  33 CFR Part 165                                         reviewed. This safety zone will continue              side of the Island of Hawaii, HI (82 FR
                                                  [Docket Number USCG–2017–0172]                          to encompass all waters within 300                    16142). We determined that a radius of
                                                                                                          meters (984 feet) of all entry points of              300 meters was a reasonable, minimum
                                                  RIN 1625–AA00                                                                                                 high-hazard zone around a point of
                                                                                                          lava flow into the ocean. Because the
                                                                                                          entry points of the lava vary, the safety             active lava flow entering the ocean. The
                                                  Safety Zone; Pacific Ocean, Kilauea                                                                           safety zone allows the Coast Guard to
                                                  Lava Flow Ocean Entry on Southeast                      zone location will also vary. Entry of
                                                                                                          persons or vessels into this safety zone              impose and enforce restrictions on
                                                  Side of Island of Hawaii, HI                                                                                  vessels operating closely to the lava
                                                                                                          remains prohibited, unless specifically
                                                  AGENCY:    Coast Guard, DHS.                            authorized by the Captain of the Port                 entry area, which protects persons and
                                                  ACTION:   Temporary final rule.                         (COTP) Honolulu, or his designated                    vessels from the potential hazards
                                                                                                          representative.                                       associated with molten lava entering the
                                                  SUMMARY:   The Coast Guard is extending,                   Lava flow that enters the ocean can be             ocean. The NPRM addressed this
                                                  for an additional six months, the                       potentially hazardous to anyone near it,              concern and invited the public to
                                                  existing temporary safety zone                          particularly when lava deltas collapse.               comment on the safety zone. The
                                                  surrounding the entry of lava from the                  A lava delta is new land that forms                   comment period, which ended on June
                                                  Kilauea volcano into the navigable                      when lava accumulates above sea level,                2, 2017, received 67 comments. On May
                                                  waters of the Pacific Ocean on the                      and extends from the existing base of a               8, 2017, at a public meeting held in
                                                  southeast side of the Island of Hawaii,                 sea cliff. Persons near active lava flow              Hilo, HI, meeting participants discussed
                                                  HI. The extension of this safety zone is                entry sites incur potential hazards,                  the proposed rule and NPRM’s public
                                                  necessary to protect persons and vessels                particularly when lava deltas collapse.               comments.
                                                  from hazards associated with molten                     These hazards include, but are not                       During the period of the TFR, four
                                                  lava entering the ocean while the                       limited to, plumes of hot, corrosive                  tour operators and one photographer
                                                  proposed rule is reviewed.                              seawater laden with hydrochloric acid,                with economic ties to lava tourism
                                                  DATES: This rule is effective from                      and fine volcanic particles that can                  petitioned the COTP Honolulu for entry
                                                  September 28, 2017 through March 28,                    irritate the skin, eyes, and lungs;                   within 300 meters of the high-hazard
                                                  2018.                                                   explosions of debris and eruptions of                 zone. They also requested and
                                                  ADDRESSES: To view documents                            scalding water from hot rock entering                 petitioned for various levels of entry
                                                  mentioned in this preamble as being                     the ocean; sudden lava delta collapses;               distances—ranging from a close, safe
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                                                  available in the docket, go to https://                 and waves associated with these                       distance to 50 meters—based on sea
                                                  www.regulations.gov, type USCG–2017–                    explosions and collapses.                             conditions resulting from the lava entry.
                                                  0172 in the ‘‘SEARCH’’ box and click                       Lava has been entering the ocean at                The COTP Honolulu granted express
                                                  ‘‘SEARCH.’’ Click on Open Docket                        the Kamokuna lava delta on Kilauea                    authorization for entry within 300
                                                  Folder on the line associated with this                 Volcano’s south coast since July 2016.                meters to the five operators. The
                                                  rule.                                                   On December 31, 2016, a large portion                 authorization included operational
                                                  FOR FURTHER INFORMATION CONTACT: If                     of lava delta collapsed into the ocean at             restrictions and other vessel safety
                                                  you have questions on this rule, call or                the Kamokuna entry point. Following                   criteria requirements considered by the


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Document Created: 2017-09-29 03:26:57
Document Modified: 2017-09-29 03:26:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThis interim final rule is effective October 1, 2017. Comments will be received by November 28, 2017.
ContactMr. Mark Ellis, Defense Health Agency, TRICARE Health Plan, (703) 681-0063.
FR Citation82 FR 45438 
RIN Number0720-AB70
CFR AssociatedClaims; Dental Health; Health Care; Health Insurance; Individuals with Disabilities; Mental Health; Mental Health Parity and Military Personnel

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