82_FR_48216 82 FR 48018 - Prosthetic and Rehabilitative Items and Services

82 FR 48018 - Prosthetic and Rehabilitative Items and Services

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 82, Issue 198 (October 16, 2017)

Page Range48018-48030
FR Document2017-22358

The Department of Veterans Affairs (VA) proposes to revise its medical regulations related to providing prosthetic and rehabilitative items as medical services to veterans. These revisions would reorganize and update the current regulations related to prosthetic and rehabilitative items, primarily to clarify eligibility for prosthetic and other rehabilitative items and services, and to define the types of items and services available to eligible veterans.

Federal Register, Volume 82 Issue 198 (Monday, October 16, 2017)
[Federal Register Volume 82, Number 198 (Monday, October 16, 2017)]
[Proposed Rules]
[Pages 48018-48030]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22358]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AP46


Prosthetic and Rehabilitative Items and Services

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to revise its 
medical regulations related to providing prosthetic and rehabilitative 
items as medical services to veterans. These revisions would reorganize 
and update the current regulations related to prosthetic and 
rehabilitative items, primarily to clarify eligibility for prosthetic 
and other rehabilitative items and services, and to define the types of 
items and services available to eligible veterans.

DATES: Comments must be received by VA on or before December 15, 2017.

ADDRESSES: Written comments may be submitted by email through http://www.regulations.gov; by mail or hand delivery to Director, Regulations 
Management (00REG), Department of Veterans Affairs, 810 Vermont Avenue 
NW., Room 1063B, Washington, DC 20420; or by fax to (202) 273-9026. 
Comments should indicate that they are submitted in response to ``RIN 
2900-AP46, Prosthetic and rehabilitative items and services.'' Copies 
of comments received will be available for public inspection in the 
Office of Regulation Policy and Management, Room 1063B, between the 
hours of 8:00 a.m. and 4:30 p.m. Monday through Friday (except 
holidays). Please call (202) 461-4902 for an appointment. (This is not 
a toll-free number.) In addition, during the comment period, comments 
may be viewed online through the Federal Docket Management System 
(FDMS) at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Penny Nechanicky, National Program 
Director for Prosthetic and Sensory Aids Service (10P4RK), Department 
of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420; 
(202) 461-0337. (This is not a toll-free number.) 
[email protected].

SUPPLEMENTARY INFORMATION: Section 1710 of title 38, United States Code 
(U.S.C.), authorizes VA to provide veterans with, among other things, 
``medical services'' when VA determines that they are ``needed.'' 
``Medical services'' is further defined in 38 U.S.C. 1701(6)(F) to 
include the following items and services, for veterans who are 
otherwise receiving care or services under chapter 17 of title 38 
U.S.C.: Wheelchairs, artificial limbs, trusses, and similar appliances; 
special clothing made necessary by the wearing of prosthetic 
appliances; and such other supplies or services as the Secretary 
determines to be reasonable and necessary. 38 U.S.C. 1701(6)(F)(i)-
(iii). The language in clauses (i) through (iii) of section 1701(6)(F) 
is the source of

[[Page 48019]]

VA's authority to provide prosthetic and rehabilitative items and 
related services to veterans as necessary items and services (i.e., 
``medical services''). Historically, we have interpreted section 
1701(6)(F)(iii) to authorize VA to provide other supplies and services 
only to the extent that they are similar or related to the expressly 
listed items in sections 1701(6)(F)(i) and (ii), i.e., wheelchairs, 
artificial limbs, trusses or similar appliances, and special clothing 
made necessary by the wearing of prosthetic appliances. We base this 
interpretation on tenets of statutory construction and opinions of VA's 
Office of General Counsel. See 2A Norman J. Singer, Statutes and 
Statutory Construction Sec.  47.17 (6th ed. 2000) (explaining that as a 
matter of statutory interpretation, where general words follow specific 
words, ``the general words are construed to embrace only objects 
similar in nature to those objects enumerated by the preceding specific 
words''). See also VAOPGCADV 7-2009, VAOPGCADV 9-2005, VAOPGCCONCL-8-
98.
    VA has considered those items expressly listed in section 
1701(6)(F)(i) and (ii) as medically necessary because such items assist 
a veteran in compensating for the loss of mobility or loss of other 
functional abilities. Thus for a supply (i.e., hereafter referred to as 
an item) or service to be similar in nature to what is enumerated in 
section 1701(6)(F)(i) and (ii), it must assist a veteran to compensate 
for loss of mobility or loss of other functional abilities. For such 
items and services to be provided pursuant to section 1701(6)(F)(iii), 
the Secretary must first determine that the item or service could 
assist veterans to compensate for loss of mobility or loss of other 
functional abilities. Next, under that provision, the Secretary must 
determine that they are ``reasonable and necessary.'' Once the 
Secretary makes these two determinations regarding an item or service 
under 1701(6)(F)(iii), VA may include them in the medical benefits 
package and provide them to individual eligible veterans as medical 
services if they are determined to be ``needed'' as required by section 
1710(a) as implemented by 38 CFR 17.38(b).
    VA's authority as described above to provide medically needed 
prosthetic and similar items to all veterans who are otherwise 
receiving care or services under chapter 17 of title 38 U.S.C. was 
established by section 103(a) of Public Law 104-262, The Veterans' 
Health Care Eligibility Reform Act of 1996, which amended the 
definition of medical services in 38 U.S.C. 1701(6). Prior to the 
enactment of Public Law 104-262, VA was effectively prohibited from 
providing prosthetic and similar items to most nonservice-connected 
veterans except in preparation for a hospital admission or to obviate 
the need for hospital admission. Section 103(b) of Public Law 104-262 
further directed VA to prescribe guidelines for the expanded 
prosthetics eligibility in section 103(a). These guidelines were issued 
through national Veterans Health Administration (VHA) policies 
beginning with VHA Directive 96-069 (as published November 7, 1996), 
culminating in VHA Handbook 1173.1 (as last published November 2, 
2000). VA has further expressly listed ``durable medical equipment and 
prosthetic and orthotic devices'' as medical services available to 
eligible veterans as part of VA's medical benefits package in 38 CFR 
17.38(a)(1)(viii). Although VA administers its prosthetics program with 
the support of Sec.  17.38(a)(1)(viii) as well as multiple VHA 
policies, neither Sec.  17.38 (except for Sec.  17.38(c)) nor these 
policies are appropriately descriptive of VA's current practices in 
providing prosthetic and similar items. For instance, 17.38(a)(1)(viii) 
provides that eligible veterans may receive prosthetic and similar 
items as medical services, and Sec.  17.38(b) further provides that 
such items may be considered medically necessary if they are 
``determined by appropriate healthcare professionals that the care is 
needed to promote, preserve, or restore the health'' of eligible 
veterans; however, the ``promote, preserve, or restore'' criteria in 
Sec.  17.38(b) are not specific enough to properly articulate the 
concept of medical necessity in the context of prosthetic and similar 
items and services, versus for medical services more generally. VA 
finds it necessary now to clarify its current practices and to propose 
certain changes with regard to the provision of prosthetic and similar 
items and services, and such clarification and proposed changes are 
appropriate for a rulemaking because they would affect VA's provision 
of prosthetic and similar items and services. We would not seek to 
substantively revise Sec.  17.38 in this manner, however, as it would 
be cumbersome and potentially confusing to establish additional 
eligibility and other administrative criteria for prosthetic and 
similar items and services as a specific type of medical service. We 
would seek instead to establish new regulations in proposed Sec. Sec.  
17.3200-.3250, and would remove a current but defunct regulation 
specifically related to the provision of prosthetic and similar items, 
38 CFR 17.150. Section 17.150 was first promulgated in 1967 and was 
never substantively revised to reflect eligibility for prosthetic and 
similar items as provided in section 103(a) of Public Law 104-262 and 
Sec.  17.38(a)(1)(viii). Although Sec.  17.150 does establish that 
there must be a VA determination of ``feasibility and medical need'' 
prior to the provision of prosthetic and rehabilitative items and 
services to veterans, the phrase ``feasibility and medical need'' does 
not properly articulate the concept of medical necessity in a manner 
that is consistent with current VA practices. Further, Sec.  17.150 
only provides a limited list of examples of prosthetic items and 
services that are provided to eligible veterans, which could be 
misinterpreted to be an exhaustive list. Removing Sec.  17.150 and 
establishing proposed Sec. Sec.  17.3200-.3250 would, among other 
things as described throughout this rulemaking, articulate the concept 
of medical necessity for these items and services in a manner 
consistent with current VA authority and practice, would provide a 
broader and expressly non-exhaustive list as well as definitions for 
items and services that may be provided, and would update veteran 
eligibility for these items and services in a manner consistent with 
section 103(a) of Public Law 104-262 and with Sec.  17.38(a)(1)(viii).
    The changes proposed in this rulemaking would also clarify the 
provision of prosthetic and rehabilitative items and services that VA 
provides as ``medical services'' under sections 1701 and 1710, versus 
other similar items and services that VA provides under other 
authorities. Congress has enacted specific statutory provisions other 
than sections 1701 and 1710 to authorize VA to furnish veterans with 
particular items and services in connection with a disability or to 
assist veterans in overcoming a disability. For example, sections 
1714(b) and 1717(c) authorize VA to furnish devices to blind and deaf 
veterans, respectively, for the broad purpose of ``overcoming the 
disability'' of blindness or deafness, without the criterion that such 
devices be considered medically necessary. This is not to say that such 
items and services could not be interpreted as being medically 
necessary. Rather, the enactment of statutes other than sections 
1701(6)(F) and 1710(a) demonstrates Congressional intent that the items 
and services provided under these other statutes are to be provided in 
accordance with the criteria in those statutes and their implementing

[[Page 48020]]

regulations. VA has established different regulatory criteria 
implementing these other statutes to control the provision of these 
other items (see, for instance, 38 CFR 17.3100 et seq., which controls 
the provision of home improvements and structural alterations permitted 
by 38 U.S.C. 1717(a)(2)). We propose to establish this distinction 
between sections 1701(6)(F) and 1710(a), and other statutes that 
control the provision of certain items and services, more clearly in 
proposed section 17.3200; specifically, we would provide a table of the 
statutory and regulatory authorities for items and services provided 
outside of sections 1701(6)(F) and 1710(a). This table would include 
authorities for items and services provided to veterans, but would not 
include authorities for items and services provided to non-veteran 
beneficiaries (such as the authorities to provide items necessary for 
care of a newborn as permitted by 38 U.S.C. 1786, or items necessary 
for care of certain dependents as permitted by 38 U.S.C. 1781). We do 
not believe it is necessary to include authorities related to non-
veterans in the proposed table, as proposed sections 17.3200 through 
17.3250 only address the provision of these items and services to 
veterans.

17.3200. Purpose and Scope

    Proposed Sec.  17.3200 would establish a clearer purpose and scope 
for the provision of prosthetic and rehabilitative items and services 
as ``medical services'' than what is articulated in current Sec.  
17.150, to distinguish VA's provision of prosthetic and rehabilitative 
items and services as medical services under sections 1701(6)(F) and 
1710 from VA's provision of other items and services under other 
authorities. Proposed Sec.  17.3200(a) would state that the purpose of 
proposed Sec. Sec.  17.3200 through 17.3250 would be to establish 
eligibility and other criteria for the provision of prosthetic and 
rehabilitative items and services to veterans as medical services under 
sections 1701(6)(F) and 1710(a). These items and services would be 
listed in proposed Sec.  17.3230, and we would reference that section 
for ease of use.
    Proposed Sec.  17.3200(b) would establish that the scope of 
proposed Sec. Sec.  17.3200 through 17.3250 would be limited to those 
prosthetic or rehabilitative items and services provided by VA as 
medical services under sections 1701(6)(F) and 1710(a), and would 
identify in a table other items or services controlled by other 
statutes and regulations. We propose to include this table because 
these items and services have different criteria (related to 
eligibility, restrictions, etc.) in accordance with distinct legal 
authorities other than sections 1701(6)(F) and 1710(a). The proposed 
rule would help reduce confusion by telling users where to find the 
other statutes and regulations relevant to these other items and 
services.

17.3210. Definitions

    Proposed Sec.  17.3210 would establish definitions relevant to the 
prosthetic and rehabilitative items and services to be provided by VA 
as medical services under sections 1701(6)(F) and 1710(a). The items 
and services that would be defined in this section are either expressly 
listed as medical services under section 1701(6)(F)(i) and (ii), or are 
similar or related to such expressly listed items and services because 
they are similarly deemed ``needed'' (as required by section 1710(a)), 
because they may be medically necessary to assist a veteran to 
compensate for loss of mobility or loss of other functional abilities 
as explained previously in this rulemaking. We note that some of the 
definitions below would propose additional qualifying criteria related 
to the items or services themselves. These additional qualifying 
criteria would be related to accomplishing specific tasks associated 
with the veteran's rehabilitation plan in addition to the general 
requirement that the item be deemed medically necessary for the 
veteran.
    ``Activities of daily living (ADL)'' would be defined as specific 
personal care activities that are required for basic daily maintenance 
and sustenance, to include eating, toileting, bathing, grooming, 
dressing and undressing, and mobility. This definition of ADLs is 
consistent with other VA regulatory definitions or uses of the term. 
See Sec. Sec.  17.36, 51.120, 52.2, and 61.1.
    ``Adaptive household item'' would be defined as a durable household 
item that has been adapted to compensate for, or that by design 
compensates for, loss of physical, sensory, or cognitive function and 
is necessary to complete one or more ADLs in the home or other 
residential setting. We believe this definition captures the common 
meaning and understanding of the word ``adaptive'' as something that 
compensates for loss of function, and we believe the further 
restrictions in this definition as explained below better explain the 
scope of items that would be considered covered. For instance, we would 
require that the adaptive household item must be ``necessary'' to 
complete one or more ADLs, because we believe this is a reasonable 
restriction for equipment that would be used in an individual's home or 
other residential setting, and would ensure that common household items 
are not provided except in narrow circumstances when a veteran cannot 
complete an ADL without such an item due to the veteran's loss of 
function. The definition of ``adaptive household item'' would further 
provide examples of such items, to include adaptive eating utensils, 
shower stools or chairs, hooks to assist in buttoning clothing, or shoe 
horns. The definition of ``adaptive household item'' would exclude 
household furniture or furnishing (which, as discussed later in this 
proposed rule, we would define as an item commonly used to make a home 
habitable or otherwise used to ornament a home, including but not 
limited to tables, chairs, desks, lamps, cabinets, non-hospital beds, 
curtains, carpet(s), etc.) because we do not find that common household 
furniture or furnishings are generally necessary to complete an ADL. 
For instance, a dining table is associated with the ADL of eating, but 
is distinguishable from an adaptive utensil that may be required to 
complete the ADL of eating. We further clarify that certain specialized 
items that may be medically necessary and that could be interpreted as 
furniture (such as hospital beds) would be expressly included under the 
proposed definition of ``home medical equipment'' as explained later in 
this proposed rule. The definition of ``adaptive household item'' would 
also expressly exclude an ``improvement or structural alteration'' 
which we would define in this section the same as it is defined in 38 
CFR 17.3101 (i.e., a modification to a home or to an existing feature 
or fixture of a home, including repairs to or replacement of previously 
improved or altered features or fixtures) because such improvements or 
alterations are authorized by section 1717(a)(2) and 38 CFR 17.3100 et 
seq., and are not within the scope of these proposed regulations, as 
stated in the table in proposed Sec.  17.3200(b). The definition of 
``adaptive household item'' would further exclude household appliances 
(which, as discussed later in this proposed rule, we would define as 
equipment for use in the home for performance of domestic chores or 
other domestic tasks, including but not limited to a refrigerator, 
stove, washing machine, and vacuum cleaner), except as necessary to 
complete an ADL, because generally most household appliances cannot be 
adapted to compensate, or by design do not compensate for, functional 
loss in such a manner as to be considered necessary to complete

[[Page 48021]]

ADLs as defined above. An exception to this general exclusion would be 
permitted when the appliance would be necessary to complete an ADL, 
such as the provision of a blender or other food processing device to a 
veteran with a diagnosed swallowing disorder who must have all food 
pureed in order to complete the ADL of eating. In contrast, appliances 
that are commonly related to eating but not necessary to complete the 
ADL of eating, such as stoves or microwaves, would not be provided. We 
further would clarify that the definition of ``adaptive household 
item'' would exclude any requirement that VA furnish such items in such 
a manner as to relieve any other person or entity of a contractual 
obligation to furnish these items to the veteran. This is because such 
items would not be needed as they have otherwise been provided for. For 
example, a veteran may have contracted with a residence or residential 
setting to furnish adaptive household items to the veteran.
    ``Adaptive recreation equipment'' would be defined as an item that 
is designed to compensate for, or that by design compensates for, loss 
of physical, sensory, or cognitive function and is necessary for the 
veteran to actively and regularly participate in a sport, recreation, 
or leisure activity to achieve the veteran's rehabilitation goals. The 
additional requirement that these items be deemed necessary for active 
and regular participation in an activity to achieve the veteran's 
rehabilitation goals, which would be documented in the veteran's 
medical record, ensures that items are only provided when their regular 
use is specifically tied to a medical goal, and not provided merely to 
support a veteran's participation in an activity only for personal 
enjoyment. Examples of such equipment VA could provide to veterans 
include mono-skis and specially designed wheelchairs to play sports 
such as basketball.
    ``Cognitive device'' would be defined as an item that compensates 
for a cognitive impairment and that is used to maintain or improve a 
veteran's functional capabilities. Examples of such equipment VA could 
provide to veterans include tablets and smart phones, as well as 
associated technological equipment, applications, and/or software, that 
can assist a veteran in maintaining daily scheduling of important tasks 
or navigating their surroundings (e.g., global positioning system or 
GPS).
    ``Communication device'' would be defined as an item that 
compensates for a communication deficiency and allows participation in 
daily communication activities. Examples of such equipment VA could 
provide to veterans include augmentation and alternative communication 
devices such as picture or symbol communication boards, or an electro 
larynx.
    ``Durable'' would be defined to mean capable of, and intended for, 
repeat use. We believe this definition captures the common meaning and 
understanding of the term ``durable.''
    ``Home exercise equipment'' would be defined as an item used in a 
home or residential setting that compensates for a loss of physical, 
sensory, or cognitive function and is necessary for the veteran to 
actively and regularly participate in aerobic, fitness, strength, or 
flexibility activities to achieve the veteran's rehabilitation goals. 
As with the definition of ``adaptive recreation equipment,'' the 
additional criteria in the definition that items are necessary for 
active and regular participation in an activity to achieve the 
veteran's rehabilitation goals, which would be documented in the 
veteran's medical record, ensures that items are only provided when 
their regular use is specifically tied to a medical goal, and not 
provided merely to support a veteran's participation in an activity 
only for personal enjoyment. This criterion would also ensure that this 
equipment is only provided when there is no other means for the veteran 
to exercise to achieve the rehabilitation goal. Such ``home exercise 
equipment'' would only be provided for one location, the veteran's 
primary residence, which is defined in this rulemaking (as discussed 
below) under proposed Sec.  17.3210 as ``the personal domicile or 
residential setting in which the veteran resides the majority of the 
year,'' and this additional criterion would be stated in proposed Sec.  
17.3230 as discussed later in this rulemaking. In identifying the 
veteran's primary residence, we would typically rely upon the veteran's 
record with VA, as well as the veteran's declared residence. The 
additional criterion that such equipment would only be provided for one 
location, the primary residence, is current VA practice, and VA has 
authority to determine that it is reasonable pursuant to 38 U.S.C. 
1701(6)(F)(iii). In this case, VA has determined this criterion to be 
reasonable because it may not be cost effective to provide multiple 
sets of the same equipment for multiple locations. Because we will 
provide one set of equipment, we believe it is adequate to provide this 
equipment where it is used the most routinely and regularly, i.e., the 
veteran's primary residence. While we generally would provide home 
exercise equipment to the veteran's primary residence, there may be 
instances when it may be provided to a veteran's non-primary residence. 
For example, if a veteran's medical treatment or rehabilitation plan 
requires access to home exercise equipment and the veteran has access 
to a gym near his or her primary residence, but has another residence 
in a rural area in which the veteran does not have access to a gym, the 
equipment may be provided to the veteran at his or her non-primary 
residence based on a clinical determination that providing such 
equipment at the veteran's non-primary residence would be necessary as 
a direct and active component of the veteran's medical treatment and 
rehabilitation. We further would state that prior to any installation 
of ``home exercise equipment'', the owner of the residence would agree 
to the installation. We also note that to the extent the equipment is 
portable, an individual would be free to move it to another location 
where the veteran may temporarily reside, such as another residence 
during an extended seasonal stay. Examples of such equipment VA could 
provide to veterans include an upper body ergometer and a functional 
electrical stimulation cycle.
    ``Home medical equipment'' would be defined as movable and durable 
medical devices used in a home or residential setting to treat or 
support treatment of specific medical conditions and would include 
hospital beds, portable patient lifts (such as porch lifts or stair 
glides), portable ramps, ventilators, home dialysis equipment, and 
infusion, feeding, or wound therapy pumps. This definition is intended 
to encompass those medical devices typically found in a medical 
facility setting (e.g., hospital beds and infusion pumps), but that 
must be used in a home or residential setting for specific medical 
treatment (most typically, for continuation of treatment initially 
received in a medical facility setting). The definition of ``home 
medical equipment'' would specifically exclude household furniture or 
furnishings, improvements or structural alterations, or any household 
appliances for the same reasons as stated in the definition of 
``adaptive household item,'' because such items could not reasonably be 
considered to be medical devices. For instance, a hospital bed could be 
provided as ``home medical equipment,'' whereas a common bed frame and 
mattress could not. As proposed in Sec.  17.3230 (later in this 
rulemaking) ``home medical equipment'' would only be provided for one 
residential setting, the veteran's primary residence, for the same 
reasons as stated

[[Page 48022]]

for ``home exercise equipment'' above. In the instance that at-home 
installation or delivery is required and the veteran has more than one 
residence, the Department will deliver the equipment to the veteran's 
primary residence. We note that to the extent the equipment is 
portable, an individual would be free to move it to another location 
where the veteran may temporarily reside, such as another residence 
during an extended seasonal stay. We will provide such equipment at the 
veteran's primary residence, as the veteran is usually also receiving 
professional care or assistance from a caregiver who must be at the 
residence at specific times, and which would involve use of the 
provided ``home medical equipment.'' While we generally would provide 
``home medical equipment'' to the veteran's primary residence, there 
may be instances when it may be provided to a veteran's non-primary 
residence, as is similar to the provision of ``home exercise 
equipment.'' For example, a veteran may be authorized for a stair 
glider; however, his or her primary residence may be a single floor 
residence. The veteran may have another residence that has more than 
one floor, and it may be clinically determined that the provision of 
the stair glider at the non-primary residence is necessary as an active 
and direct component of the veteran's medical treatment or 
rehabilitation. We also would clarify that prior to any installation of 
``home medical equipment'', the owner of the residence must agree to 
the installation of the equipment. We further would clarify that the 
definition of ``home medical equipment'' would exclude any requirement 
that VA will furnish such items in such a manner as to relieve any 
other person or entity of a contractual obligation to furnish these 
items or services to the veteran. This is because such items would not 
be needed as they have otherwise been provided for. For example, a 
veteran may have contracted with a residence or residential setting to 
furnish home medical equipment to the veteran.
    The definition of ``home medical equipment'' would also exclude 
``medical alert devices,'' which, as discussed later in this proposed 
rule, we would define as devices designed to summon general safety 
assistance for a veteran, e.g. a device worn by an individual to summon 
medical assistance in the event of a fall or other incident, or to 
provide a veteran's general medical information to others, e.g., 
medical identification bracelets. While we currently provide both 
medical alert devices and medical identification bracelets, those would 
not be provided under these proposed rules as these items would not be 
an active and direct component of a veteran's medical treatment or 
rehabilitation pursuant to proposed Sec.  17.3230, described later in 
this rulemaking. Medical alert devices are passive and purely 
communicative devices, similar to cell phones, which are not used for 
specific medical treatment or rehabilitation and do not contribute 
directly to a veteran's medical treatment or rehabilitation and would 
therefore not be provided under this authority. Their purpose is to 
communicate about an unforeseeable future event, and they do not 
actively communicate clinical or medical information about a veteran 
nor do they communicate information that contributes directly to a 
veteran's medical treatment or rehabilitation pursuant to proposed 
Sec.  17.3230, described later in this rulemaking. Although these may 
be used during an unforeseeable emergency to convey information about a 
veteran, they do not actively or directly medically treat or 
rehabilitate a veteran and any limitations the veteran may have, and 
thus are not ``necessary'' under this authority. Medical alert devices 
are also programmable to alert whomever the veteran chooses, and do not 
necessarily result in an alert or communication to a medical 
professional. These devices also do not necessarily result in an alert 
that the veteran is in need of medical assistance, as these devices can 
be used to alert an individual or entity of a general need for 
assistance. With the prevalence of, and access to, cell phones and 
other similar technologies that serve a similar function as medical 
alert devices in this context, we believe that most, if not all, 
veterans have access to the technology necessary to alert individuals 
and/or entities when medical assistance is needed. Thus, while these 
devices could be considered beneficial to a veteran's treatment in 
limited circumstances, we do not consider the provision of these under 
this authority as reasonable. The definition of ``medical alert 
devices'' would not apply to alarms or other safety indicators on home 
medical equipment, such as an alarm to alert an individual if a 
ventilator is unplugged. Such alarms and indicators, therefore, could 
be provided as part of home medical equipment. These alarms and 
indicators that are part of medical equipment (such as a ventilator) do 
contribute directly to a veteran's treatment as part of the total 
function of the piece of medical equipment, unlike devices that serve a 
purely communicative function.
    Similarly, medical identification bracelets would be excluded under 
this regulation as they are not a direct and active component of a 
veteran's medical treatment or rehabilitation, and therefore are not 
reasonable and necessary under this authority. Medical identification 
bracelets are entirely passive, do not actively communicate any 
information about a veteran, and merely provide information about the 
existence of a condition of a veteran. Although these may be used 
during an unforeseeable emergency to convey information about a 
veteran, they do not actively or directly medically treat or 
rehabilitate a veteran and any limitations the veteran may have, and 
thus are not ``necessary'' under this authority. While these devices 
could be considered beneficial to a veteran's treatment in limited 
circumstances, we do not consider the provision of these under this 
authority as reasonable for the same reasons stated above. We note that 
we currently provide these medical identification bracelets, however 
for the reasons discussed, they would be outside the scope of this 
authority and would not be authorized to be provided pursuant to these 
proposed regulations. We further note that after the publication of the 
final rulemaking, we would rescind VHA Directive 2009-007, Provision of 
Medical Identification (ID) Bracelets and Pendants, to ensure VA policy 
is consistent with the published final rules.
    Lastly, we clarify that although certain home medical equipment 
might need to be installed in a home to ensure its proper functioning, 
such as a portable ramp or a hospital bed, such equipment must not 
amount to an improvement or structural alteration to a veteran's 
residence. Such improvements or alterations to homes are authorized by 
section 1717(a)(2) and 38 CFR 17.3100 et seq., and are not within the 
scope of these proposed regulations, as stated in the table in proposed 
Sec.  17.3200(b). This clarification related to installation would be 
established in proposed Sec.  17.3230 as discussed later in this 
rulemaking.
    ``Home respiratory equipment'' would be defined as an item used to 
provide oxygen therapy or to support or enhance respiratory function. 
We note that home respiratory equipment would be distinguished from 
home medical equipment because we would permit the provision of 
additional pieces of respiratory equipment as medically necessary 
outside of a single home or residential setting, such as additional 
portable oxygen tanks when a veteran

[[Page 48023]]

might need to travel. Examples of such equipment VA would provide to 
veterans include compressed oxygen, oxygen concentrators, and 
continuous positive airway pressure machines.
    ``Household appliances'' would be defined as equipment for use in 
the home for performance of domestic chores or other domestic tasks, 
including but not limited to a refrigerator, stove, washing machine, 
and vacuum cleaner. We believe this definition captures the common 
meaning and understanding of this term.
    ``Household furniture or furnishing'' would be defined as an item 
commonly used to make a home habitable or otherwise used to ornament a 
home, including but not limited to tables, chairs, desks, lamps, 
cabinets, non-hospital beds, curtains, and carpet(s). We believe this 
definition captures the common meaning and understanding of this term.
    ``Implant'' would be defined as any biological or non-biological 
material that is manufactured or processed to be placed into a 
surgically or naturally formed cavity on the human body; is covered 
with tissue, has the potential to be covered with tissue, or is 
permanently embedded in tissue; does not dissolve or dissipate within 
the body; and is not a living organ, embryonic tissue, blood, or blood 
product. VA provides implants as part of the prosthetics program, and 
this definition characterizes such implants consistently with VA's 
current provision of implants, and to that extent would not reflect a 
change in the scope of benefits available to eligible veterans.
    ``Improvements or structural alterations'' means a modification to 
a home or to an existing feature or fixture of a home, including 
repairs to or replacement of previously improved or altered features or 
fixtures. This term would be defined the same as it is defined in 38 
CFR 17.3101 (i.e., a modification to a home or to an existing feature 
or fixture of a home, including repairs to or replacement of previously 
improved or altered features or fixtures). Such improvements or 
structural alterations are authorized by section 1717(a)(2) and 38 CFR 
17.3100 et seq., and are not within the scope of these proposed 
regulations, as stated in the table in proposed Sec.  17.3200(b).
    ``Medical alert device'' would mean an item designed to summon 
general safety assistance for a veteran, or that provides a veteran's 
general medical information to others. This definition would not 
include alarms or other safety indicators for home medical equipment. 
As previously discussed, this definition is necessary because ``medical 
alert device'' would be excluded from the term ``home medical 
equipment.''
    ``Mobility aid'' would be defined as an item that compensates for a 
mobility impairment and that is used to maintain or improve a veteran's 
functional capabilities to be mobile. Examples of such equipment VA 
would provide to veterans include manual and motorized wheelchairs, 
canes, walkers, and equipment to assist veterans with reaching for or 
grasping items. We would exclude a service or guide dog from this 
definition because the provision of certain benefits for service or 
guide dogs is not within the scope of these proposed regulations as 
stated in the table in proposed Sec.  17.3200(b). VA has published 
regulations concerning benefits for service and guide dogs at 38 CFR 
17.148.
    ``Orthotic device'' would be defined as an item fitted externally 
to the body that is used to support, align, prevent, or correct 
deformities or to improve the function of movable parts of the body. We 
believe this definition captures the common meaning and understanding 
of this term as well as its common meaning and use in the health care 
industry. Examples of such items VA would provide to veterans include 
leg braces, upper extremity splints and braces, and functional 
electrical stimulation devices such as Bioness[supreg] or 
WalkAide[supreg].
    ``Primary residence'' would be defined as the personal domicile or 
residential setting in which the veteran resides the majority of the 
year. We believe this definition captures the common meaning and 
understanding of this term. While a person may maintain more than one 
residence, they may only have one primary residence at a time. This 
would include any residential setting the veteran owns, rents, or in 
which the veteran otherwise resides.
    ``Prosthetic device'' would be defined as an item that replaces a 
missing or defective body part. We believe this definition captures the 
common meaning and understanding of this term as well as its common 
meaning and use in the health care industry. Examples of such items VA 
would provide to veterans include artificial limbs and artificial eyes. 
We note that certain prosthetic devices may not have mechanical or 
other functionality, but nonetheless could be considered medically 
necessary and not merely cosmetic in nature. For instance, certain 
artificial hands may not have mechanical functions to grasp objects, 
but the use of such devices equalizes weight distribution in the arm 
and across the body. As another example, artificial eyes would not 
function to restore or improve sight, but would provide necessary shape 
to an eye socket and prevent objects from entering the eye socket.
    ``Replacement item'' would be defined as an item that is similar or 
identical to an item provided under proposed Sec.  17.3230(a), and that 
takes the place of such an item. We believe this definition captures 
the common meaning and understanding of this term.
    ``VA-authorized vendor'' would be defined as a vendor that has been 
authorized by VA to provide items and services under Sec.  17.3230. We 
believe this definition is self-explanatory. This definition would be 
relevant to the discussion later in this proposed rule regarding the 
furnishing of items and services in proposed Sec.  17.3240.

17.38. Medical Benefits Package and 17.3220. Eligibility

    Proposed Sec.  17.3220 would clarify veteran eligibility for 
prosthetic and rehabilitative items and services provided under 
sections 1701(6)(F) and 1710(a). As explained previously in this 
rulemaking, VA is authorized under sections 1701(6)(F)(iii) and 1710(a) 
to provide those prosthetic and rehabilitative items and services that 
VA determines are medically necessary to assist a veteran to compensate 
for loss of mobility or loss of other functional abilities, where the 
veteran is otherwise receiving care or services under chapter 17 of 
title 38 U.S.C. Section 17.38(a)(1)(viii), in turn includes the 
provision of ``durable medical equipment and prosthetic and orthotic 
devices'' as part of VA's ``medical benefits package.'' We would first 
revise Sec.  17.38(a)(1)(viii) to use the term ``prosthetic and 
rehabilitative items and services'' as proposed in these regulations, 
and would cross reference this term with citations to the proposed 
regulations in this rulemaking so it is clear that such items and 
services under Sec.  17.38(a)(1)(viii) are provided in accordance with 
proposed Sec. Sec.  17.3200 through 17.3250.
    We would also revise Sec.  17.38(b) to reflect that prosthetic and 
rehabilitative items and services authorized in Sec.  17.38(a)(1)(viii) 
are excluded from the ``promote, preserve, or restore'' standard under 
Sec.  17.38(b). As previously discussed in this rulemaking, the 
standard of ``promote, preserve, or restore'' under Sec.  17.38(b) is 
not specific enough to distinguish when prosthetic and rehabilitative 
items should be provided because they are medically necessary, versus 
when an item or service would not be provided because

[[Page 48024]]

it is only desired. Using a standard other than that of ``promote, 
preserve, or restore'' would also be consistent with the authorizing 
statutes, sections 1701(6)(F) and 1710(a), requiring that VA provide 
those items and services that are necessary and reasonable. However, in 
a note to proposed Sec.  17.3230, we would state that the exclusions in 
Sec.  17.38(c) apply to the provision of items and services pursuant to 
Sec.  17.3230.
    Proposed Sec.  17.3220 would then establish eligibility for 
prosthetic and rehabilitative items and services by requiring that 
veterans be enrolled in VA's enrollment system under Sec.  17.36 or 
exempt from such enrollment under Sec.  17.37, and requiring that such 
veterans are otherwise receiving care under chapter 17 of title 38 
U.S.C. These two eligibility criteria would be in proposed Sec.  
17.3220(a)-(b), respectively. Proposed Sec.  17.3220(b) would further 
describe the concept of ``otherwise receiving care'' to include where a 
veteran is prescribed a prosthetic or rehabilitative item or service by 
a VA provider or an authorized non-Department provider. We believe that 
by receiving a prescription the veteran would be receiving care under 
chapter 17.

17.3230. Authorized Items and Services

    Proposed Sec.  17.3230(a) would state that VA would provide 
veterans who are eligible under Sec.  17.3220 with items and services 
that would be listed in proposed Sec.  17.3230(a)(1)-(15) as described 
below. Proposed Sec.  17.3230(a) would further state that VA will 
provide items and services listed in proposed Sec.  17.3230(a)(1)-(15), 
if VA determines that the items or services serve as a direct and 
active component of the veteran's medical treatment or rehabilitation, 
and do not merely support the comfort or convenience of the veteran. 
The statement in proposed Sec.  17.3230(a) that items and services need 
to be a direct and active component of the veteran's medical treatment 
or rehabilitation and not merely for the comfort or convenience of the 
veteran is consistent with VA practice. As stated previously in this 
rulemaking, the more specific criteria related to medical necessity in 
proposed Sec.  17.3230(a) are needed because the ``promote, preserve, 
or restore'' criteria in Sec.  17.38(b) may be appropriate in terms of 
medical services generally, but are not specific enough to distinguish 
when prosthetic and rehabilitative items and services should be 
provided because they are medically necessary, versus when an item or 
service would not be provided because it is only desired. The items and 
services provided are intended to be limited to those that accommodate 
a veteran's medical treatment or rehabilitation. This would also be 
consistent with the authorizing statutes, sections 1701(6)(F) and 
1710(a), requiring that VA provide those items and services that are 
necessary and reasonable. Proposed Sec.  17.3230(a)(1) through (a)(15) 
would list the categories of items and services that have been and 
would continue to be provided by VA as prosthetic or rehabilitative 
items or services. Definitions of the items and services to be provided 
in proposed Sec.  17.3230(a)(1) through (a)(15), as well as examples of 
such items, are provided in the discussion of proposed Sec.  17.3210, 
and we do not reiterate that information generally below. We propose, 
however, additional criteria that must be met in proposed Sec.  
17.3230(a)(5) and (a)(6) for ``home exercise equipment'' and ``home 
medical equipment,'' respectively. We reiterate from the discussion of 
the proposed definitions earlier in this rulemaking that proposed Sec.  
17.3230(a)(5) and (a)(6) would establish a restriction that both ``home 
exercise equipment'' and ``home medical equipment'' would only be 
provided for one location, generally the veteran's primary residence. 
This additional criterion that such equipment would only be provided 
for one location is current VA practice and is reasonable because we 
believe it is adequate in most cases to provide this equipment at the 
veteran's primary residence, a term which is previously defined and 
discussed in this rulemaking. Relatedly, it is current VA practice to 
provide one piece of equipment; therefore, we believe it is also 
reasonable to provide that equipment to the veteran's primary 
residence, as that is the personal domicile or residential setting in 
which the veteran resides the majority of the year, and is where we 
believe the equipment will likely be used most routinely and regularly. 
If the veteran has more than one residence, the Department will provide 
the equipment to the veteran's primary residence. We note that to the 
extent the equipment is portable, an individual would be free to move 
it to another location where the veteran may temporarily reside, such 
as another residence during an extended seasonal stay. As indicated 
previously, there may be limited instances when ``home exercise 
equipment'' or ``home medical equipment'' may be provided at a non-
primary residence based on a clinical determination. Prior to any 
installation of such equipment in the residence, the owner of the 
residence would have to agree to the installation of the equipment. 
Additionally, proposed Sec.  17.3230(a)(6) would establish that home 
medical equipment must not require installation that amounts to a home 
improvement or structural alteration to a veteran's primary residence. 
Such improvements and alterations to homes are authorized by 38 U.S.C. 
1717(a)(2) and controlled by other implementing regulations, as 
referenced in the table in proposed Sec.  17.3200(b). Lastly, we would 
require an additional restriction in proposed Sec.  17.3230(a)(2) and 
(a)(5) that ``adaptive recreation equipment'' and ``home exercise 
equipment'' be provided when such equipment would achieve the veteran's 
rehabilitation goals as documented in the veteran's medical record. 
This is because these types of equipment are generally provided to 
achieve specific rehabilitation goals, while the other items and 
services provided under this section are not.
    Proposed Sec.  17.3230(a)(12) would authorize the repair of any 
item provided under proposed Sec.  17.3230(a), unless cost or clinical 
reasons favor replacing the item. Even if not initially prescribed by 
VA, an item under proposed Sec.  17.3230(a) could be repaired if the VA 
provider or authorized non-Department provider determines that the item 
is still medically necessary and writes an authorized prescription for 
the veteran. This is consistent with current VA practice, and is 
reasonable to ensure that veterans have necessary and properly 
functioning items.
    Proposed Sec.  17.3230(a)(13) would authorize the replacement of 
items provided under proposed Sec.  17.3230 if the original items have 
been damaged, destroyed, lost, or stolen, or if replacement is 
clinically indicated. Proposed paragraph (a)(13) would establish that 
if items are serviceable and still meet the veteran's need, VA will not 
replace such items for the sole purpose of obtaining a newer model of 
the same or similar item. Proposed Sec.  17.3230(a)(13) sets forth a 
reasonable restriction that would allow VA to provide replacement items 
as clinically indicated, for the benefit of all veterans to whom VA 
must provide these items and services.
    We note that generally we would provide veterans with one item or 
service under this proposed rule. However, there may be instances when 
we would provide a veteran with a spare item. The provision of spare 
items would be authorized if it is clinically determined that a veteran 
would immediately require another identical or similar item. For 
example, the provision of a spare item may be clinically determined to 
be immediately required

[[Page 48025]]

if an item provided under the proposed regulations were to fail or 
require rotation (e.g., routine cleaning) as a component of proper use. 
VA may also provide an identical or similar item in the event of a 
failure of an item provided under these regulations if it is determined 
that it would otherwise be detrimental to the veteran's medical 
treatment or rehabilitation to not provide a spare item. This is 
current VA practice and is reasonable to ensure that veterans would 
have access to items that are necessary on a continuous basis if the 
veteran could not wait for repair or replacement, such as a spare 
wheelchair or spare prosthetic limb. VA's provision of items as 
explained above attempts to ensure that veterans have working, usable 
equipment when needed. We discuss the provision of spare items in a 
note at the end of proposed Sec.  17.3230.
    Additionally, VA's reimbursement of emergency care under 38 U.S.C. 
1725 and 1728 ensures that VA may reimburse some veterans for needed 
repairs to equipment if such repairs cannot wait for prior VA 
authorization. For these reasons, and to be consistent with section 
1728, we propose removing Sec.  17.122, which authorizes the repair of 
prosthetic and similar items without prior authorization from VA if the 
expenses were incurred in the care of an adjudicated service-connected 
disability. Section 17.122 is not needed, as sections 1725 and 1728 
would provide for VA payment of repairs without prior VA authorization 
as described above, and the other VA regulations that currently 
implement these sections (sections 17.120 et seq. and 17.1000 et seq.) 
are sufficient to authorize payment. Further, we find no basis for 
treating reimbursement of the expenses of prosthetic repairs 
differently from the expenses of other types of ``emergency care''. In 
addition to removing Sec.  17.122, we propose deleting from Sec.  
17.120 the following language, ``(except prosthetic appliances, similar 
devices, and repairs),'' because we do not see a need to treat the 
provision of these appliances, devices and repairs any differently from 
other emergency care provided under this section. Removing Sec.  17.122 
is needed as described above, and would clarify that the access to 
prosthetic repair services without prior authorization in medical 
emergencies for veterans would be authorized under sections 1725 and 
1728 and their implementing regulations.
    Proposed Sec.  17.3230(a)(14) would authorize the provision of 
specialized clothing made necessary by the wearing of a prosthetic 
device. The provision of specialized clothing made necessary by the 
wearing of a prosthetic device is specifically identified as a medical 
service under section 1701(6)(F)(ii), and we would therefore include it 
in this proposed rule. We contrast this with the clothing allowance 
provided under Sec.  3.810 and authorized by 38 U.S.C. 1162, which is 
intended to provide a clothing allowance only to veterans with certain 
service-connected disabilities, apart from the provision of medical 
services under section 1710. See 118 Cong. Rec. S. 20748, 20751 (1972) 
(legislative history related to the bill that would enact section 1162, 
explaining that a new clothing allowance would assist veterans to 
purchase non-specialized, regular clothing that may experience wear and 
tear due to use of a wheelchair or prosthetic device, separate from the 
benefit for specialized clothing due to the wearing of a prosthetic 
device that VA provided as a medical service).
    Proposed Sec.  17.3230(a)(15) would authorize training with and 
fitting of items as considered necessary. Training and fitting of 
prosthetic appliances is required by 38 U.S.C. 1714(a), is current VA 
practice, and is reasonable to ensure, to the extent practicable, that 
veterans safely operate items and that items are properly maintained to 
promote their longevity. We would additionally remove current Sec.  
17.153 related to training and fitting of prosthetic and similar items, 
as it would be duplicative of proposed Sec.  17.3230(a)(15).
    Proposed Sec.  17.3230(b) would establish that unless items 
provided under proposed Sec.  17.3230(a) are loaned to a veteran, based 
on a clinical determination, such items become the property of the 
veteran once the veteran takes possession of those items. This would 
ensure that veterans have full use of, and responsibility for, items 
provided by VA, and will use them in the manner in which they are 
prescribed. If items will be loaned, a written agreement (which would 
include roles and responsibilities for the duration of the loan) with 
the veteran would be entered into to ensure that it is clear the 
veteran does not own the item, and that the veteran fully understands 
and agrees to the terms of the loan.

17.3240. Furnishing Authorized Items and Services

    Proposed Sec.  17.3240(a) would establish that VA will determine 
whether VA or a VA-authorized vendor will furnish authorized items and 
services under Sec.  17.3230 to eligible veterans. When VA has the 
capacity or inventory, VA directly provides items and services to 
veterans. However, VA also may use, on a case-by case basis, VA-
authorized vendors to provide greater access, lower cost, and/or a 
wider range of items and services. We would clarify in regulation that 
this administrative business decision is made solely by VA to eliminate 
any possible confusion as to whether a veteran has a right to request 
items or services generally, or to request specific items or services 
from a provider other than VA, and to clarify for the benefit of VA-
authorized vendors that VA retains this discretion as part of our duty 
to administer this program in a legally sufficient, fiscally 
responsible manner.
    Proposed Sec.  17.3240(b) would establish that, except for 
emergency treatment reimbursable under 38 CFR 17.120 et. seq or 17.1000 
et seq., prior authorization is required from VA for VA-authorized 
vendors to obtain reimbursement for furnishing items or services under 
Sec.  17.3230 to veterans. Prior authorization may be obtained by 
contacting VA. Paragraph (b) will help ensure that the highest quality 
and most clinically appropriate device is provided, as prescribed by VA 
providers, and that items or services are not subject to potential 
alterations or substitutions by VA-authorized vendors without VA 
oversight.

17.3250. Veteran Responsibilities

    Proposed Sec.  17.3250 would establish responsibilities of veterans 
who are provided prosthetic and rehabilitative items and services. 
Proposed Sec.  17.3250(a) would establish that veterans must use items 
provided under proposed Sec.  17.3230(a) in the manner for which they 
are prescribed, and consistent with the manufacturer's instructions and 
any training provided. This would ensure, to the extent practicable, 
veteran safety in using the item as well as the longevity of the item.
    Proposed Sec.  17.3250(b) would establish that, except for 
emergency care under 38 CFR 17.120 et. seq. or 38 CFR 17.1000 et seq., 
veterans must obtain prior authorization from VA if they want VA to 
reimburse a VA-authorized vendor for such items and services provided 
under Sec.  17.3230. This would reinforce general VA oversight 
requirements already proposed in these regulations to ensure the 
highest quality and most appropriate item or service is provided, and 
would distinctly provide notice to veterans and vendors that VA will 
not be responsible for the cost of items and services provided to 
veterans who are not preauthorized by VA or otherwise covered as 
emergency care.

[[Page 48026]]

Rescission of Use of Prosthetic Service Card and Related VA Policy

    We note that after the publication of this rulemaking is final, we 
would rescind, in their entirety, VHA Handbooks 1173.06, 1173.1. 
1173.10, 1173.2, 1173.3, VA Forms 10-2501 and 10-2520, and VA Form 
Letter 10-55; and develop new VHA policy to ensure VA's provision of 
prosthetics is consistent with the published final rules. Any 
references to the prosthetic service card would be excluded from future 
VHA policies and forms implementing these rules as further explained 
below.
    As part of this plan, we specifically note that future VA policy 
would not include portions of existing VA policy that reference 
``prosthetic service cards'' and establish limits on reimbursement or 
payment amounts for emergency repairs of prosthetic items through the 
use of a ``prosthetic service card'' to obtain repairs from VA-
authorized vendors without prior authorization from VA. A ``prosthetic 
service card'' is a piece of paper (VA Form 10-2501) that VA has issued 
to veterans in the past for the purpose of providing a third party 
vendor with notice that VA would reimburse such vendor for the 
provision of certain repairs, up to certain amounts. VA Form 2520 in 
the past has been the invoice used by vendors to submit to VA requests 
for payment for repairs performed under the prosthetic service card. 
This prosthetic service card was intended to allow third party vendors 
to forego the normal process of contacting VA first for authorization, 
and instead submit an invoice to VA for the cost of repairs after they 
were completed. The card was intended to be used if it was not feasible 
for a VA-authorized vendor to contact VA for authorization and the 
repair was immediately necessary, such as when a repair was needed 
after VA office hours. However, these prosthetic service cards have not 
been widely or consistently used by veterans or vendors for the purpose 
of obtaining VA approval of emergency repairs. First, veterans in many 
instances have lost their prosthetic service cards or have not carried 
the card on their person to be able to present to third party vendors. 
Second, even when presented with the card, many third party vendors 
have nonetheless contacted VA for authorization prior to providing 
repairs. The card itself is merely a piece of paper that provides 
notice that VA will reimburse a vendor for certain repairs up to 
certain amounts--it is not a pre-paid credit card or other means of 
providing immediate payment to a VA-authorized vendor (despite the 
description of the card as a ``debit'' card in VHA Handbook 1173.1). 
Even when the card has been used, third party vendors have still had to 
submit an invoice and other documentation to VA to get reimbursed for 
the repair. Therefore, use of the prosthetic service card has not 
typically been any less burdensome for third party vendors to receive 
payment from VA than if such vendors had contacted VA for authorization 
prior to the repair. The intent of the card was to decrease the burden 
for both veterans and third party vendors, but it has not functioned 
consistently in this manner. Additionally, the card does not 
appropriately reference sections 1725 and 1728 as the authorities to 
provide repairs without prior authorization, which creates problems 
where the card either does not recognize the applicable criteria in 
sections 1725 and 1728 (for instance, related to eligibility under 
sections 1725 and 1728), or establishes criteria that may be 
inconsistent with 1725 and 1728 (for instance, the prosthetic service 
card contains a space for VA to set a limit on any repair costs).
    Currently, references to the prosthetic service card (PSC) are 
located in paragraphs 3.tt, 8.a, 9.i, 9.h, 9.m of VHA Handbook 1173.1; 
paragraphs 4.a.(2)-a.(7), 4.b., 4.c.(1)-c.(7), and 6.c.(4) of VHA 
Handbook 1173.2; paragraphs 10.a.(1) and 10.c of VHA Handbook 1173.3; 
paragraphs 7.a. and 7.e. of VHA Handbook 1173.06; and paragraphs 
3.i.(9) and 4.c. in VHA Handbook 1173.10. Paragraphs 3.tt and 9.h in 
VHA Handbook 1173.1 both define ``VA Form 10-2501, Prosthetic Service 
Card (PSC).'' Paragraph 8.a. in VHA Handbook 1173.1 references requests 
for payment of PSC (i.e. prosthetic service card) repairs. Paragraph 
9.i in VHA Handbook 1173.1 defines ``VA Form 10-2520, Prosthetic 
Service Card Invoice'', and paragraph 9.m. defines ``VA Form Letter 10-
55, Authority to Exceed Repair Costs of Prosthetic Appliances'' as a 
letter of authorization forwarded to a provider of PSC (i.e. prosthetic 
service card) repairs when the cost of that repair exceeds the limit 
authorized by the PSC (i.e. prosthetic service card). In VHA Handbook 
1173.2, paragraph 4.a.(2) requires that repairs be obtained by use of 
the prosthetic service card; paragraphs 4.a.(3)-a.(7) detail 
requirements that PSCs be provided by all prosthetic programs at field 
facilities, authority for equipment repairs and services using 
prosthetic service cards, monetary limits for prosthetic service cards, 
responsibility for payment of prosthetic service card invoices, and 
payment for repairs made without prior approval; paragraph 4.b. sets 
forth VA, vendor, and veteran responsibilities related to the 
administration of prosthetic service cards; paragraphs 4.c.(1)-c.(7) 
include prosthetic service card benefits limits, and the processes for 
prosthetic service card preparation and issuance, prosthetic service 
card invoice preparation and issues, repairs authorization, and 
prosthetic service card revocation or cancellation; and paragraph 
6.c.(4) requires repairs of artificial limbs, braces, wheelchairs, and 
other appliances on presentation by the veteran of a valid prosthetic 
service card.
    Paragraph 10.a.(1) of VHA Handbook 1173.3 states that repairs may 
be obtained through commercial sources using VA Form 10-2501, and 
paragraph 10.c. of VHA Handbook 1173.3 encourages the use of prosthetic 
service cards for those veterans eligible for a prosthetic service 
card.
    Paragraphs 7.a. and 7.e. of VHA Handbook 1173.06 authorize the use 
of prosthetic service cards for repairs to wheelchairs. Paragraphs 
3.i.(9) and 4.c. in VHA Handbook 1173.10 authorize the use of 
prosthetic service cards for repairs to orthotic devices.
    Lastly, VA Form 10-2501, VA Form 10-2520, and VA Form Letter 10-55 
also reference prosthetic service cards. Currently, VA Form 10-2520 is 
an approved information collection under OMB Control Number 2900-0188, 
which is set to expire on October 31, 2017. On August 22, 2017, we 
issued a Federal Register (FR) Notice informing the public of the 
opportunity to comment on the proposed renewal of that information 
collection. 82 FR 39951. While we are requesting renewal of that 
collection, we now propose to eliminate VA Form 10-2520 under that 
existing collection for the reasons explained above as part of this 
proposed rule. Public comments on the discontinuance of VA Form 10-2520 
should be submitted as part of this rulemaking for consideration by VA. 
While related, VA Form 10-2015 and VA Form Letter 10-55 are not 
information collections, did not require OMB approval prior to 
issuance, and thus are not part of that Federal Register Notice.
    As previously stated, to ensure consistency with the published 
final regulations, we would rescind all relevant and applicable 
handbooks, and develop a new VHA policy document or documents. Any 
references to prosthetic service cards in existing policies would be 
excluded from that future policy document or documents for the reasons 
mentioned above. We would also discontinue the use of the related forms

[[Page 48027]]

and letters previously identified in this section. As part of this 
rulemaking, we welcome any public comments on these efforts as they 
relate to this rulemaking.
    Although we would rescind the prosthetic service card and the 
policies and forms governing its use, there would remain, as explained 
previously, statutory and regulatory authority (38 U.S.C. 1725 and 
1728, 38 CFR 17.120 et seq. and 17.1000 et seq.) to reimburse some 
vendors or veterans for the cost of some emergency, unauthorized 
repairs. VA could also obviate the need for veterans to obtain 
emergency repairs from vendors by providing spares for prosthetic and 
rehabilitative items under Sec.  17.3230, as clinically appropriate.

Effect of Rulemaking

    The Code of Federal Regulations, as proposed to be revised by this 
proposed rulemaking, would represent the exclusive legal authority on 
this subject. No contrary guidance or procedures would be authorized. 
All VA guidance would be read to conform with this proposed rulemaking 
if possible or, if not possible, such guidance would be superseded by 
this rulemaking.

Paperwork Reduction Act

    This proposed rule contains no provisions constituting a collection 
of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3521).

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. Therefore, pursuant to 5 U.S.C. 605(b), these 
amendments would be exempt from the initial and final regulatory 
flexibility analysis requirements of 5 U.S.C. 603 and 604.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by the Office of 
Management and Budget (OMB) as ``any regulatory action that is likely 
to result in a rule that may: (1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's Web 
site at http://www1.va.gov/orpm/, by following the link for ``VA 
Regulations Published.''

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This proposed rule would have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are 64.009, Veterans Medical 
Care Benefits; 64.013, Veterans Prosthetic Appliances.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, approved this document on October 11, 
2017, for publication.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Government contracts, Health 
care, Health facilities, Health professions, Medical devices, Veterans.

    Dated: October 11, 2017.
Janet Coleman,
Chief, Office of Regulation Policy & Management, Office of the 
Secretary, Department of Veterans Affairs.

    For the reasons set forth in the preamble, we propose to amend 38 
CFR part 17 as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 continues to read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific sections.

0
2. Amend Sec.  17.38 by revising paragraph (a)(1)(viii) and revising 
paragraph (b). The revisions read as follows:


Sec.  17.38.   Medical Benefits Package.

    (a) * * *
    (1) * * *
    (viii) Prosthetic and rehabilitative items and services as 
authorized under Sec. Sec.  17.3200-.3250, and eyeglasses and hearing 
aids as authorized under Sec.  17.149.
* * * * *
    (b) Provision of the ``medical benefits package''. Care referred to 
in the ``medical benefits package'' (except for prosthetics and 
rehabilitative items and services authorized in paragraph (a)(1)(viii) 
of this section) will be provided to individuals only if it is 
determined by appropriate healthcare professionals that the care is 
needed to promote, preserve, or restore the health of the individual 
and is in accord with generally accepted standards of medical practice.
* * * * *


Sec.  17.120   [Amended].

0
3. Amend the introductory text of Sec.  17.120 by removing ``(except 
prosthetic appliances, similar devices, and repairs)''.


Sec.  17.122   [Removed].

0
4. Remove Sec.  17.122.
0
5. Revise the undesignated center heading that precedes Sec.  17.148 to 
read as follows:

[[Page 48028]]

Sensory and Other Rehabilitative Aids


Sec. Sec.  17.150   [Removed and reserved]


Sec. Sec.  17.153   [Removed and reserved]

0
6. Remove and reserve Sec. Sec.  17.150 and 17.153.
0
7. Add an undesignated center heading and Sec. Sec.  17.3200 through 
17.3250, to read as follows:

Prosthetic and Rehabilitative Items And Services


Sec.  17.3200   Purpose and scope.

    (a) Purpose. The purpose of Sec. Sec.  17.3200 through 17.3250 is 
to establish eligibility and other criteria for the provision to 
veterans of the prosthetic and rehabilitative items and services, 
listed in Sec.  17.3230, authorized as medical services under 38 U.S.C. 
1701(6)(F) and 38 U.S.C. 1710(a).
    (b) Scope. Sections 17.3200 through 17.3250 apply only to items and 
services listed in Sec.  17.3230(a) and authorized as medical services 
under 38 U.S.C. 1701(6)(F) and 38 U.S.C. 1710(a). The provision of the 
items or services and payments in the table below are authorized in 
whole or in part by separate statutes and controlled by other 
implementing regulations:

------------------------------------------------------------------------
        Item or service                 Statute           Regulation(s)
------------------------------------------------------------------------
Clothing allowance............  38 U.S.C. 1162........  38 CFR 3.810.
Service and guide dog benefits  38 U.S.C. 1714(b) &     38 CFR 17.148.
                                 (c).
Sensori-neural aids...........  38 U.S.C. 1707(b).....  38 CFR 17.149.
Patient lifts and other         38 U.S.C. 1717(b).....  38 CFR 17.151.
 rehabilitative devices.
Devices for deaf veterans.....  38 U.S.C. 1717(c).....  38 CFR 17.152.
Equipment for blind veterans..  38 U.S.C. 1714(b).....  38 CFR 17.154.
Automobile adaptive equipment.  38 U.S.C. 3901 et seq.  38 CFR 17.155 et
                                                         seq.
Home improvements and           38 U.S.C. 1717(a)(2)..  38 CFR 17.3100
 structural alterations.                                 et seq.
------------------------------------------------------------------------


(Authority: 38 U.S.C. 501, 1162, 1701, 1707, 1710, 1714, 1717, 3901)

Sec.  17.3210   Definitions.

    For the purposes of Sec. Sec.  17.3200 through 17.3250:
    Activities of daily living (ADLs) means specific personal care 
activities that are required for basic daily maintenance and 
sustenance, to include eating, toileting, bathing, grooming, dressing 
and undressing, and mobility.
    Adaptive household item means a durable household item that has 
been adapted to compensate for, or that by design compensates for, loss 
of physical, sensory, or cognitive function and is necessary to 
complete one or more ADLs in the home or other residential setting. 
Adaptive household items include but are not limited to adaptive eating 
utensils, shower stools or chairs, hooks to assist in buttoning 
clothing, or shoe horns. This definition does not include household 
furniture or furnishings, improvements or structural alterations, or 
household appliances, unless a household appliance is necessary to 
complete an ADL in the home or other residential setting. VA will not 
furnish such items or services in such a manner as to relieve any other 
person or entity of a contractual obligation to furnish these items or 
services to the veteran.
    Adaptive recreation equipment means an item that is designed to 
compensate for, or that by design compensates for, loss of physical, 
sensory, or cognitive function and is necessary for the veteran to 
actively and regularly participate in a sport, recreation, or leisure 
activity to achieve the veteran's rehabilitation goals as documented in 
the veteran's medical record.
    Cognitive device means an item that compensates for a cognitive 
impairment and that is used to maintain or improve a veteran's 
functional capabilities, including but not limited to technological 
equipment such as tablets and smart phones, and associated 
technological equipment, applications or software that can assist a 
veteran in maintaining daily scheduling of important tasks or 
navigating their surroundings (e.g., global positioning system, or GPS) 
.
    Communication device means an item that compensates for a 
communication deficiency and allows participation in daily 
communication activities, including but not limited to picture or 
symbol communication boards and an electro larynx.
    Durable means capable of, and intended for, repeat use.
    Home exercise equipment means an item used in a home or residential 
setting that compensates for a loss of physical, sensory, or cognitive 
function and that is necessary for the veteran to actively and 
regularly participate in aerobic, fitness, strength, or flexibility 
activities to achieve the veteran's rehabilitation goals as documented 
in the veteran's medical record, when there is no other means for the 
veteran to exercise to achieve the veteran's rehabilitation goals. Such 
equipment includes but is not limited to an upper body ergometer and a 
functional electrical stimulation cycle.
    Home medical equipment means an item that is a movable and durable 
medical device that is used in a home or residential setting to treat 
or support treatment of specific medical conditions. Such equipment 
includes but is not limited to hospital beds, portable patient lifts, 
portable ramps, ventilators, home dialysis equipment, and infusion, 
feeding, or wound therapy pumps. This definition does not include 
household furniture or furnishings, improvements or structural 
alterations, household appliances, or medical alert devices. VA will 
not furnish home medical equipment in such a manner as to relieve any 
other person or entity of a contractual obligation to furnish these 
items or services to the veteran.
    Home respiratory equipment means an item used to provide oxygen 
therapy or to support or enhance respiratory function, including but 
not limited to compressed oxygen, oxygen concentrators, and continuous 
positive airway pressure machines.
    Household appliance means an item used in the home for performance 
of domestic chores or other domestic tasks, including but not limited 
to a refrigerator, stove, washing machine, and vacuum cleaner.
    Household furniture or furnishing means an item commonly used to 
make a home habitable or otherwise used to ornament a home, including 
but not limited to tables, chairs, desks, lamps, cabinets, non-hospital 
beds, curtains, and carpet(s).
    Implant means any biological or non-biological material that:
    (1) Is manufactured or processed to be placed into a surgically or 
naturally formed cavity on the human body;
    (2) Is covered with tissue, has the potential to be covered with 
tissue, or is permanently embedded in tissue;
    (3) Does not dissolve or dissipate within the body; and
    (4) Is not a living organ, embryonic tissue, blood, or blood 
product.

[[Page 48029]]

    Improvements or structural alterations means a modification to a 
home or to an existing feature or fixture of a home, including repairs 
to or replacement of previously improved or altered features or 
fixtures.
    Medical alert device means an item designed to summon general 
safety assistance for a veteran, or provides a veteran's general 
medical information to others. This definition does not include alarms 
or other safety indicators for home medical equipment.
    Mobility aid means an item that compensates for a mobility 
impairment and that is used to maintain or improve a veteran's 
functional capabilities to be mobile. Mobility aids include but are not 
limited to manual and motorized wheelchairs, canes, walkers, and 
equipment to assist a veteran to reach for or grasp items This 
definition does not include a service or guide dog.
    Orthotic device means an item fitted externally to the body that is 
used to support, align, prevent, or correct deformities or to improve 
the function of movable parts of the body. Orthotic devices include but 
are not limited to leg braces, upper extremity splints and braces, and 
functional stimulation devices.
    Primary residence means the personal domicile or residential 
setting in which the veteran resides the majority of the year.
    Prosthetic device means an item that replaces a missing or 
defective body part. Prosthetic devices include but are not limited to 
artificial limbs and artificial eyes.
    Replacement item means an item that is similar or identical to an 
item provided under Sec.  17.3230(a), and that takes the place of such 
an item.
    VA-authorized vendor means a vendor that has been authorized by VA 
to provide items and services under Sec.  17.3230.

(Authority: 38 U.S.C. 501, 1701, 1710)

Sec.  17.3220   Eligibility.

    A veteran is eligible to receive items and services described in 
Sec.  17.3230 if:
    (a) The veteran is enrolled under Sec.  17.36 or exempt from 
enrollment under Sec.  17.37; and
    (b) The veteran is otherwise receiving care or services under 
chapter 17 of title 38 U.S.C. If a VA provider or an authorized non-
Department provider prescribes an item or service for the veteran, the 
veteran is considered to otherwise be receiving care or services under 
chapter 17 of title 38 U.S.C.

(Authority: 38 U.S.C. 501, 1701(6)(F), 1710)

Sec.  17.3230   Authorized items and services.

    (a) VA will provide veterans eligible under Sec.  17.3220 with the 
following items and services, if VA determines that such items and 
services serve as a direct and active component of the veteran's 
medical treatment and rehabilitation and do not merely support the 
comfort or convenience of the veteran:
    (1) Adaptive household items.
    (2) Adaptive recreation equipment, when such equipment would 
achieve the veteran's rehabilitation goals as documented in the 
veteran's medical record.
    (3) Cognitive devices.
    (4) Communication devices.
    (5) Home exercise equipment, where such equipment will only be 
provided for one location, the veteran's primary residence, unless it 
is clinically determined that the equipment should be provided at the 
veteran's non-primary residence instead of the veteran's primary 
residence. Prior to any installation of home exercise equipment, the 
owner of the residence must agree to the installation. Such equipment 
will only be provided to achieve the veteran's rehabilitation goals as 
documented in the veteran's medical record.
    (6) Home medical equipment, and if required, installation that does 
not amount to an improvement or structural alteration to a veteran's 
residence. Such equipment will only be provided for one location, the 
veteran's primary residence, unless it is clinically determined that 
the equipment should be provided at the veteran's non-primary residence 
instead of the veteran's primary residence. Prior to any installation 
of home medical equipment, the owner of the residence must agree to the 
installation.
    (7) Home respiratory equipment.
    (8) Implants.
    (9) Mobility aids.
    (10) Orthotic devices.
    (11) Prosthetic devices.
    (12) Repairs to items provided under paragraph (a) of this section, 
even if the item was not initially prescribed by VA, but VA determines 
the repair to be necessary, unless VA determines to replace the item 
for cost or clinical reasons.
    (13) Replacement items, if items provided under this section have 
been damaged, destroyed, lost, or stolen, or if replacement is 
clinically indicated, subject to the following: Items that are 
serviceable, and that still meet the veteran's need, will not be 
replaced for the sole purpose of obtaining a newer model of the same or 
similar item.
    (14) Specialized clothing made necessary by the wearing of a 
prosthetic device; and
    (15) Training with and fitting of prescribed items as considered 
necessary.
    (b) Unless an item provided under Sec.  17.3230(a) is loaned to the 
veteran based on a clinical determination that a loan is more 
beneficial for the veteran, such items become the property of the 
veteran once the veteran takes possession of those items. If the 
determination is that the item will be loaned to a veteran, the veteran 
must agree to the terms of the loan in order to receive the item.
    Note to Section Sec.  17.3230: Even though the items and services 
listed in this provision are included in the medical benefits package, 
this section governs determinations of need for them and not 38 CFR 
17.38(b). The exclusions under 38 CFR 17.38(c) will apply to the items 
and services provided under this section. While VA will generally 
provide only one item under this section, the provision of spare items 
may be authorized based on a clinical determination of need using the 
criteria set forth in this section.

(Authority: 38 U.S.C. 501, 1701(6)(F), 1710, 1714(a))

Sec.  17.3240   Furnishing authorized items and services.

    (a) VA will determine whether VA or a VA-authorized vendor will 
furnish authorized items and services under Sec.  17.3230 to veterans 
eligible for such items and services under Sec.  17.3210.
    (b) Except for emergency care reimbursable under 38 CFR 17.120 et 
seq. or 38 CFR 17.1000 et seq., prior authorization is required for VA 
to reimburse VA-authorized vendors for furnishing items or services 
under Sec.  17.3230 to veterans. Prior authorization must be obtained 
from VA by contacting any VA medical facility.


Sec.  17.3250.   Veteran responsibilities.

    (a) Veterans must use items provided under Sec.  17.3230 in the 
manner for which they are prescribed, and consistent with the 
manufacturer's instructions and any training provided. Failure to do so 
may result in the item not being replaced under Sec.  17.3230(a)(13).
    (b) Except for emergency care under 38 CFR 17.120 et seq. or 
17.1000 et seq., veterans obtaining items and services provided under 
Sec.  17.3230 must obtain prior authorization from VA in order to 
obtain VA reimbursement for such items and services obtained from a VA-
authorized vendor. VA will not be responsible for the cost of items and

[[Page 48030]]

services provided that are not preauthorized by VA or that otherwise 
are not covered as emergency care under 38 CFR 17.120 et. seq. or 
17.1000 et seq.

(Authority: 38 U.S.C. 501, 1701, 1710, 1725, 1728)

[FR Doc. 2017-22358 Filed 10-13-17; 8:45 am]
 BILLING CODE 8320-01-P



                                                 48018                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 other technical changes to narrow                       987 gain or loss that are consistent with             SUMMARY:   The Department of Veterans
                                                 further the application of the rules are                amounts of translation gain or loss that              Affairs (VA) proposes to revise its
                                                 currently being considered. With these                  would be determined under applicable                  medical regulations related to providing
                                                 contemplated changes incorporated,                      financial accounting rules, as well as                prosthetic and rehabilitative items as
                                                 Treasury and the IRS believe the revised                under the 1991 proposed Section 987                   medical services to veterans. These
                                                 regulations would more closely track                    regulations.                                          revisions would reorganize and update
                                                 the intent of Congress.                                    In this connection, the IRS and the                the current regulations related to
                                                                                                         Office of Tax Policy are considering                  prosthetic and rehabilitative items,
                                                 8. Final Regulations Under Section 987
                                                                                                         alternative loss recognition timing                   primarily to clarify eligibility for
                                                 on Income and Currency Gain or Loss
                                                                                                         limitations that would apply to electing              prosthetic and other rehabilitative items
                                                 With Respect to a Section 987 Qualified
                                                                                                         taxpayers. Under the base limitation                  and services, and to define the types of
                                                 Business Unit (T.D. 9794; 81 FR 88806)
                                                                                                         under consideration, the electing                     items and services available to eligible
                                                    These final regulations provide rules                taxpayer would be permitted to                        veterans.
                                                 for: (i) Translating income from branch                 recognize net Section 987 losses only to              DATES: Comments must be received by
                                                 operations conducted in a currency                      the extent of net Section 987 gains                   VA on or before December 15, 2017.
                                                 different from the branch owner’s                       recognized in prior or subsequent years.              ADDRESSES: Written comments may be
                                                 functional currency into the owner’s                    As a possible additional approach to                  submitted by email through http://
                                                 functional currency; (ii) calculating                   limiting losses, the IRS and the Office of            www.regulations.gov; by mail or hand
                                                 foreign currency gain or loss with                      Tax Policy are also considering the                   delivery to Director, Regulations
                                                 respect to the branch’s financial assets                administrability of a limitation under                Management (00REG), Department of
                                                 and liabilities; and (iii) recognizing such             which the electing taxpayer would defer               Veterans Affairs, 810 Vermont Avenue
                                                 foreign currency gain or loss when the                  recognition of all Section 987 losses and             NW., Room 1063B, Washington, DC
                                                 branch makes certain transfers of any                   gains until the earlier of (i) the year that          20420; or by fax to (202) 273–9026.
                                                 property to its owner. Commenters                       the trade or business conducted by the                Comments should indicate that they are
                                                 argued that the transition rule in the                  Section 987 QBU ceases to be performed                submitted in response to ‘‘RIN 2900–
                                                 final regulations imposes an undue                      by any member of its controlled group                 AP46, Prosthetic and rehabilitative
                                                 financial burden because it disregards                  or (ii) the year substantially all of the             items and services.’’ Copies of
                                                 losses calculated for years prior to the                assets and activities of the QBU are                  comments received will be available for
                                                 transition but not previously                           transferred outside of the controlled                 public inspection in the Office of
                                                 recognized. Many taxpayers have also                                                                          Regulation Policy and Management,
                                                                                                         group.
                                                 commented that the method prescribed                                                                          Room 1063B, between the hours of 8:00
                                                                                                            Finally, the IRS and the Office of Tax
                                                 by the final regulations for calculating                                                                      a.m. and 4:30 p.m. Monday through
                                                                                                         Policy are considering alternatives to
                                                 foreign currency gain or loss is unduly                                                                       Friday (except holidays). Please call
                                                                                                         the transition rules in the final
                                                 complex and financially burdensome to                                                                         (202) 461–4902 for an appointment.
                                                                                                         regulations. One alternative would be to
                                                 apply, particularly where the final                                                                           (This is not a toll-free number.) In
                                                                                                         allow taxpayers that elect to apply the
                                                 regulations differ from financial                                                                             addition, during the comment period,
                                                                                                         loss limitations applicable to the
                                                 accounting rules.                                                                                             comments may be viewed online
                                                    After reviewing these comments and                   simplified methodology discussed
                                                                                                         above to carry forward unrealized                     through the Federal Docket Management
                                                 meeting with a significant number of
                                                                                                         Section 987 gains and losses, measured                System (FDMS) at http://
                                                 affected taxpayers in different
                                                                                                         as of the transition date with                        www.regulations.gov.
                                                 industries, Treasury and the IRS believe
                                                 that the regulations have proved                        appropriate adjustments, and subject to               FOR FURTHER INFORMATION CONTACT:
                                                 difficult to apply for many taxpayers. To               such loss limitations. A second                       Penny Nechanicky, National Program
                                                 address these difficulties, Treasury and                alternative under consideration would                 Director for Prosthetic and Sensory Aids
                                                 the IRS currently expect to issue                       be to allow taxpayers adopting the final              Service (10P4RK), Department of
                                                 guidance that would permit taxpayers to                 regulations to elect to translate all items           Veterans Affairs, 810 Vermont Avenue
                                                 elect to defer the application of                       on the QBU’s opening balance sheet on                 NW., Washington, DC 20420; (202) 461–
                                                 Regulation Sections 1.987–1 through                     the transition date at the spot exchange              0337. (This is not a toll-free number.)
                                                 1.981–10 until at least 2019, depending                 rate, but not carry forward any                       Penny.Nechanicky@va.gov.
                                                 on the beginning date of the taxpayer’s                 unrealized Section 987 gains or losses.               SUPPLEMENTARY INFORMATION: Section
                                                 taxable year.                                           David J. Kautter,                                     1710 of title 38, United States Code
                                                    In addition, Treasury and the IRS also               Assistant Secretary of the Treasury for Tax           (U.S.C.), authorizes VA to provide
                                                 intend to propose modifications to the                  Policy.                                               veterans with, among other things,
                                                 final regulations to permit taxpayers to                [FR Doc. 2017–22205 Filed 10–13–17; 8:45 am]
                                                                                                                                                               ‘‘medical services’’ when VA
                                                 elect to adopt a simplified method of                                                                         determines that they are ‘‘needed.’’
                                                                                                         BILLING CODE 4810–25–P
                                                 calculating Section 987 gain and loss                                                                         ‘‘Medical services’’ is further defined in
                                                 and translating Section 987 income and                                                                        38 U.S.C. 1701(6)(F) to include the
                                                 loss, subject to certain limitations on the                                                                   following items and services, for
                                                 timing of recognition of Section 987                    DEPARTMENT OF VETERANS                                veterans who are otherwise receiving
                                                 loss. Under one variation of a simplified               AFFAIRS                                               care or services under chapter 17 of title
                                                 methodology currently being                             38 CFR Part 17                                        38 U.S.C.: Wheelchairs, artificial limbs,
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 considered, taxpayers would treat all                                                                         trusses, and similar appliances; special
                                                 assets and liabilities of a Section 987                 RIN 2900–AP46                                         clothing made necessary by the wearing
                                                 qualified business unit (QBU) as marked                                                                       of prosthetic appliances; and such other
                                                 items and translate all items of income                 Prosthetic and Rehabilitative Items and               supplies or services as the Secretary
                                                 and expense at the average exchange                     Services                                              determines to be reasonable and
                                                 rate for the year. This methodology                     AGENCY:    Department of Veterans Affairs.            necessary. 38 U.S.C. 1701(6)(F)(i)–(iii).
                                                 generally would result in                                                                                     The language in clauses (i) through (iii)
                                                                                                         ACTION:   Proposed rule.
                                                 determinations of amounts of Section                                                                          of section 1701(6)(F) is the source of


                                            VerDate Sep<11>2014   16:01 Oct 13, 2017   Jkt 244001   PO 00000   Frm 00009   Fmt 4702   Sfmt 4702   E:\FR\FM\16OCP1.SGM   16OCP1


                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                         48019

                                                 VA’s authority to provide prosthetic and                VA was effectively prohibited from                    17.150. Section 17.150 was first
                                                 rehabilitative items and related services               providing prosthetic and similar items                promulgated in 1967 and was never
                                                 to veterans as necessary items and                      to most nonservice-connected veterans                 substantively revised to reflect
                                                 services (i.e., ‘‘medical services’’).                  except in preparation for a hospital                  eligibility for prosthetic and similar
                                                 Historically, we have interpreted section               admission or to obviate the need for                  items as provided in section 103(a) of
                                                 1701(6)(F)(iii) to authorize VA to                      hospital admission. Section 103(b) of                 Public Law 104–262 and
                                                 provide other supplies and services only                Public Law 104–262 further directed VA                § 17.38(a)(1)(viii). Although § 17.150
                                                 to the extent that they are similar or                  to prescribe guidelines for the expanded              does establish that there must be a VA
                                                 related to the expressly listed items in                prosthetics eligibility in section 103(a).            determination of ‘‘feasibility and
                                                 sections 1701(6)(F)(i) and (ii), i.e.,                  These guidelines were issued through                  medical need’’ prior to the provision of
                                                 wheelchairs, artificial limbs, trusses or               national Veterans Health                              prosthetic and rehabilitative items and
                                                 similar appliances, and special clothing                Administration (VHA) policies                         services to veterans, the phrase
                                                 made necessary by the wearing of                        beginning with VHA Directive 96–069                   ‘‘feasibility and medical need’’ does not
                                                 prosthetic appliances. We base this                     (as published November 7, 1996),                      properly articulate the concept of
                                                 interpretation on tenets of statutory                   culminating in VHA Handbook 1173.1                    medical necessity in a manner that is
                                                 construction and opinions of VA’s                       (as last published November 2, 2000).                 consistent with current VA practices.
                                                 Office of General Counsel. See 2A                       VA has further expressly listed ‘‘durable             Further, § 17.150 only provides a
                                                 Norman J. Singer, Statutes and Statutory                medical equipment and prosthetic and                  limited list of examples of prosthetic
                                                 Construction § 47.17 (6th ed. 2000)                     orthotic devices’’ as medical services                items and services that are provided to
                                                 (explaining that as a matter of statutory               available to eligible veterans as part of             eligible veterans, which could be
                                                 interpretation, where general words                     VA’s medical benefits package in 38                   misinterpreted to be an exhaustive list.
                                                 follow specific words, ‘‘the general                    CFR 17.38(a)(1)(viii). Although VA                    Removing § 17.150 and establishing
                                                 words are construed to embrace only                     administers its prosthetics program with              proposed §§ 17.3200–.3250 would,
                                                 objects similar in nature to those objects              the support of § 17.38(a)(1)(viii) as well            among other things as described
                                                 enumerated by the preceding specific                    as multiple VHA policies, neither                     throughout this rulemaking, articulate
                                                 words’’). See also VAOPGCADV 7–2009,                    § 17.38 (except for § 17.38(c)) nor these             the concept of medical necessity for
                                                 VAOPGCADV 9–2005,                                                                                             these items and services in a manner
                                                                                                         policies are appropriately descriptive of
                                                 VAOPGCCONCL–8–98.                                                                                             consistent with current VA authority
                                                                                                         VA’s current practices in providing
                                                    VA has considered those items                                                                              and practice, would provide a broader
                                                 expressly listed in section 1701(6)(F)(i)               prosthetic and similar items. For
                                                                                                         instance, 17.38(a)(1)(viii) provides that             and expressly non-exhaustive list as
                                                 and (ii) as medically necessary because                                                                       well as definitions for items and
                                                 such items assist a veteran in                          eligible veterans may receive prosthetic
                                                                                                         and similar items as medical services,                services that may be provided, and
                                                 compensating for the loss of mobility or                                                                      would update veteran eligibility for
                                                 loss of other functional abilities. Thus                and § 17.38(b) further provides that such
                                                                                                         items may be considered medically                     these items and services in a manner
                                                 for a supply (i.e., hereafter referred to as                                                                  consistent with section 103(a) of Public
                                                 an item) or service to be similar in                    necessary if they are ‘‘determined by
                                                                                                         appropriate healthcare professionals                  Law 104–262 and with
                                                 nature to what is enumerated in section                                                                       § 17.38(a)(1)(viii).
                                                 1701(6)(F)(i) and (ii), it must assist a                that the care is needed to promote,
                                                 veteran to compensate for loss of                       preserve, or restore the health’’ of                     The changes proposed in this
                                                 mobility or loss of other functional                    eligible veterans; however, the                       rulemaking would also clarify the
                                                 abilities. For such items and services to               ‘‘promote, preserve, or restore’’ criteria            provision of prosthetic and
                                                 be provided pursuant to section                         in § 17.38(b) are not specific enough to              rehabilitative items and services that VA
                                                 1701(6)(F)(iii), the Secretary must first               properly articulate the concept of                    provides as ‘‘medical services’’ under
                                                 determine that the item or service could                medical necessity in the context of                   sections 1701 and 1710, versus other
                                                 assist veterans to compensate for loss of               prosthetic and similar items and                      similar items and services that VA
                                                 mobility or loss of other functional                    services, versus for medical services                 provides under other authorities.
                                                 abilities. Next, under that provision, the              more generally. VA finds it necessary                 Congress has enacted specific statutory
                                                 Secretary must determine that they are                  now to clarify its current practices and              provisions other than sections 1701 and
                                                 ‘‘reasonable and necessary.’’ Once the                  to propose certain changes with regard                1710 to authorize VA to furnish veterans
                                                 Secretary makes these two                               to the provision of prosthetic and                    with particular items and services in
                                                 determinations regarding an item or                     similar items and services, and such                  connection with a disability or to assist
                                                 service under 1701(6)(F)(iii), VA may                   clarification and proposed changes are                veterans in overcoming a disability. For
                                                 include them in the medical benefits                    appropriate for a rulemaking because                  example, sections 1714(b) and 1717(c)
                                                 package and provide them to individual                  they would affect VA’s provision of                   authorize VA to furnish devices to blind
                                                 eligible veterans as medical services if                prosthetic and similar items and                      and deaf veterans, respectively, for the
                                                 they are determined to be ‘‘needed’’ as                 services. We would not seek to                        broad purpose of ‘‘overcoming the
                                                 required by section 1710(a) as                          substantively revise § 17.38 in this                  disability’’ of blindness or deafness,
                                                 implemented by 38 CFR 17.38(b).                         manner, however, as it would be                       without the criterion that such devices
                                                    VA’s authority as described above to                 cumbersome and potentially confusing                  be considered medically necessary. This
                                                 provide medically needed prosthetic                     to establish additional eligibility and               is not to say that such items and
                                                 and similar items to all veterans who are               other administrative criteria for                     services could not be interpreted as
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                                                 otherwise receiving care or services                    prosthetic and similar items and                      being medically necessary. Rather, the
                                                 under chapter 17 of title 38 U.S.C. was                 services as a specific type of medical                enactment of statutes other than
                                                 established by section 103(a) of Public                 service. We would seek instead to                     sections 1701(6)(F) and 1710(a)
                                                 Law 104–262, The Veterans’ Health Care                  establish new regulations in proposed                 demonstrates Congressional intent that
                                                 Eligibility Reform Act of 1996, which                   §§ 17.3200–.3250, and would remove a                  the items and services provided under
                                                 amended the definition of medical                       current but defunct regulation                        these other statutes are to be provided
                                                 services in 38 U.S.C. 1701(6). Prior to                 specifically related to the provision of              in accordance with the criteria in those
                                                 the enactment of Public Law 104–262,                    prosthetic and similar items, 38 CFR                  statutes and their implementing


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                                                 48020                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 regulations. VA has established different               restrictions, etc.) in accordance with                individual’s home or other residential
                                                 regulatory criteria implementing these                  distinct legal authorities other than                 setting, and would ensure that common
                                                 other statutes to control the provision of              sections 1701(6)(F) and 1710(a). The                  household items are not provided
                                                 these other items (see, for instance, 38                proposed rule would help reduce                       except in narrow circumstances when a
                                                 CFR 17.3100 et seq., which controls the                 confusion by telling users where to find              veteran cannot complete an ADL
                                                 provision of home improvements and                      the other statutes and regulations                    without such an item due to the
                                                 structural alterations permitted by 38                  relevant to these other items and                     veteran’s loss of function. The definition
                                                 U.S.C. 1717(a)(2)). We propose to                       services.                                             of ‘‘adaptive household item’’ would
                                                 establish this distinction between                                                                            further provide examples of such items,
                                                                                                         17.3210. Definitions
                                                 sections 1701(6)(F) and 1710(a), and                                                                          to include adaptive eating utensils,
                                                 other statutes that control the provision                  Proposed § 17.3210 would establish                 shower stools or chairs, hooks to assist
                                                 of certain items and services, more                     definitions relevant to the prosthetic                in buttoning clothing, or shoe horns.
                                                 clearly in proposed section 17.3200;                    and rehabilitative items and services to              The definition of ‘‘adaptive household
                                                 specifically, we would provide a table of               be provided by VA as medical services                 item’’ would exclude household
                                                 the statutory and regulatory authorities                under sections 1701(6)(F) and 1710(a).                furniture or furnishing (which, as
                                                 for items and services provided outside                 The items and services that would be
                                                                                                                                                               discussed later in this proposed rule, we
                                                 of sections 1701(6)(F) and 1710(a). This                defined in this section are either
                                                                                                                                                               would define as an item commonly used
                                                 table would include authorities for                     expressly listed as medical services
                                                                                                                                                               to make a home habitable or otherwise
                                                 items and services provided to veterans,                under section 1701(6)(F)(i) and (ii), or
                                                                                                                                                               used to ornament a home, including but
                                                 but would not include authorities for                   are similar or related to such expressly
                                                                                                         listed items and services because they                not limited to tables, chairs, desks,
                                                 items and services provided to non-                                                                           lamps, cabinets, non-hospital beds,
                                                 veteran beneficiaries (such as the                      are similarly deemed ‘‘needed’’ (as
                                                                                                         required by section 1710(a)), because                 curtains, carpet(s), etc.) because we do
                                                 authorities to provide items necessary                                                                        not find that common household
                                                 for care of a newborn as permitted by 38                they may be medically necessary to
                                                                                                         assist a veteran to compensate for loss               furniture or furnishings are generally
                                                 U.S.C. 1786, or items necessary for care                                                                      necessary to complete an ADL. For
                                                 of certain dependents as permitted by                   of mobility or loss of other functional
                                                                                                         abilities as explained previously in this             instance, a dining table is associated
                                                 38 U.S.C. 1781). We do not believe it is
                                                                                                         rulemaking. We note that some of the                  with the ADL of eating, but is
                                                 necessary to include authorities related
                                                                                                         definitions below would propose                       distinguishable from an adaptive utensil
                                                 to non-veterans in the proposed table, as
                                                                                                         additional qualifying criteria related to             that may be required to complete the
                                                 proposed sections 17.3200 through
                                                                                                         the items or services themselves. These               ADL of eating. We further clarify that
                                                 17.3250 only address the provision of
                                                                                                         additional qualifying criteria would be               certain specialized items that may be
                                                 these items and services to veterans.
                                                                                                         related to accomplishing specific tasks               medically necessary and that could be
                                                 17.3200. Purpose and Scope                              associated with the veteran’s                         interpreted as furniture (such as
                                                    Proposed § 17.3200 would establish a                 rehabilitation plan in addition to the                hospital beds) would be expressly
                                                 clearer purpose and scope for the                       general requirement that the item be                  included under the proposed definition
                                                 provision of prosthetic and                             deemed medically necessary for the                    of ‘‘home medical equipment’’ as
                                                 rehabilitative items and services as                    veteran.                                              explained later in this proposed rule.
                                                 ‘‘medical services’’ than what is                          ‘‘Activities of daily living (ADL)’’               The definition of ‘‘adaptive household
                                                 articulated in current § 17.150, to                     would be defined as specific personal                 item’’ would also expressly exclude an
                                                 distinguish VA’s provision of prosthetic                care activities that are required for basic           ‘‘improvement or structural alteration’’
                                                 and rehabilitative items and services as                daily maintenance and sustenance, to                  which we would define in this section
                                                 medical services under sections                         include eating, toileting, bathing,                   the same as it is defined in 38 CFR
                                                 1701(6)(F) and 1710 from VA’s                           grooming, dressing and undressing, and                17.3101 (i.e., a modification to a home
                                                 provision of other items and services                   mobility. This definition of ADLs is                  or to an existing feature or fixture of a
                                                 under other authorities. Proposed                       consistent with other VA regulatory                   home, including repairs to or
                                                 § 17.3200(a) would state that the                       definitions or uses of the term. See                  replacement of previously improved or
                                                 purpose of proposed §§ 17.3200 through                  §§ 17.36, 51.120, 52.2, and 61.1.                     altered features or fixtures) because
                                                 17.3250 would be to establish eligibility                  ‘‘Adaptive household item’’ would be               such improvements or alterations are
                                                 and other criteria for the provision of                 defined as a durable household item                   authorized by section 1717(a)(2) and 38
                                                 prosthetic and rehabilitative items and                 that has been adapted to compensate                   CFR 17.3100 et seq., and are not within
                                                 services to veterans as medical services                for, or that by design compensates for,               the scope of these proposed regulations,
                                                 under sections 1701(6)(F) and 1710(a).                  loss of physical, sensory, or cognitive               as stated in the table in proposed
                                                 These items and services would be                       function and is necessary to complete                 § 17.3200(b). The definition of ‘‘adaptive
                                                 listed in proposed § 17.3230, and we                    one or more ADLs in the home or other                 household item’’ would further exclude
                                                 would reference that section for ease of                residential setting. We believe this                  household appliances (which, as
                                                 use.                                                    definition captures the common                        discussed later in this proposed rule, we
                                                    Proposed § 17.3200(b) would establish                meaning and understanding of the word                 would define as equipment for use in
                                                 that the scope of proposed §§ 17.3200                   ‘‘adaptive’’ as something that                        the home for performance of domestic
                                                 through 17.3250 would be limited to                     compensates for loss of function, and                 chores or other domestic tasks,
                                                 those prosthetic or rehabilitative items                we believe the further restrictions in                including but not limited to a
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                                                 and services provided by VA as medical                  this definition as explained below better             refrigerator, stove, washing machine,
                                                 services under sections 1701(6)(F) and                  explain the scope of items that would be              and vacuum cleaner), except as
                                                 1710(a), and would identify in a table                  considered covered. For instance, we                  necessary to complete an ADL, because
                                                 other items or services controlled by                   would require that the adaptive                       generally most household appliances
                                                 other statutes and regulations. We                      household item must be ‘‘necessary’’ to               cannot be adapted to compensate, or by
                                                 propose to include this table because                   complete one or more ADLs, because we                 design do not compensate for,
                                                 these items and services have different                 believe this is a reasonable restriction              functional loss in such a manner as to
                                                 criteria (related to eligibility,                       for equipment that would be used in an                be considered necessary to complete


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                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                            48021

                                                 ADLs as defined above. An exception to                  VA could provide to veterans include                  primary residence, there may be
                                                 this general exclusion would be                         augmentation and alternative                          instances when it may be provided to a
                                                 permitted when the appliance would be                   communication devices such as picture                 veteran’s non-primary residence. For
                                                 necessary to complete an ADL, such as                   or symbol communication boards, or an                 example, if a veteran’s medical
                                                 the provision of a blender or other food                electro larynx.                                       treatment or rehabilitation plan requires
                                                 processing device to a veteran with a                      ‘‘Durable’’ would be defined to mean               access to home exercise equipment and
                                                 diagnosed swallowing disorder who                       capable of, and intended for, repeat use.             the veteran has access to a gym near his
                                                 must have all food pureed in order to                   We believe this definition captures the               or her primary residence, but has
                                                 complete the ADL of eating. In contrast,                common meaning and understanding of                   another residence in a rural area in
                                                 appliances that are commonly related to                 the term ‘‘durable.’’                                 which the veteran does not have access
                                                 eating but not necessary to complete the                   ‘‘Home exercise equipment’’ would be               to a gym, the equipment may be
                                                 ADL of eating, such as stoves or                        defined as an item used in a home or                  provided to the veteran at his or her
                                                 microwaves, would not be provided. We                   residential setting that compensates for              non-primary residence based on a
                                                 further would clarify that the definition               a loss of physical, sensory, or cognitive             clinical determination that providing
                                                 of ‘‘adaptive household item’’ would                    function and is necessary for the veteran             such equipment at the veteran’s non-
                                                 exclude any requirement that VA                         to actively and regularly participate in              primary residence would be necessary
                                                 furnish such items in such a manner as                  aerobic, fitness, strength, or flexibility            as a direct and active component of the
                                                 to relieve any other person or entity of                activities to achieve the veteran’s                   veteran’s medical treatment and
                                                 a contractual obligation to furnish these               rehabilitation goals. As with the                     rehabilitation. We further would state
                                                 items to the veteran. This is because                   definition of ‘‘adaptive recreation                   that prior to any installation of ‘‘home
                                                 such items would not be needed as they                  equipment,’’ the additional criteria in               exercise equipment’’, the owner of the
                                                 have otherwise been provided for. For                   the definition that items are necessary               residence would agree to the
                                                 example, a veteran may have contracted                  for active and regular participation in an            installation. We also note that to the
                                                 with a residence or residential setting to              activity to achieve the veteran’s                     extent the equipment is portable, an
                                                 furnish adaptive household items to the                 rehabilitation goals, which would be                  individual would be free to move it to
                                                 veteran.                                                documented in the veteran’s medical                   another location where the veteran may
                                                    ‘‘Adaptive recreation equipment’’                    record, ensures that items are only                   temporarily reside, such as another
                                                 would be defined as an item that is                     provided when their regular use is                    residence during an extended seasonal
                                                 designed to compensate for, or that by                  specifically tied to a medical goal, and              stay. Examples of such equipment VA
                                                 design compensates for, loss of physical,               not provided merely to support a                      could provide to veterans include an
                                                 sensory, or cognitive function and is                   veteran’s participation in an activity                upper body ergometer and a functional
                                                 necessary for the veteran to actively and               only for personal enjoyment. This                     electrical stimulation cycle.
                                                 regularly participate in a sport,                       criterion would also ensure that this
                                                 recreation, or leisure activity to achieve              equipment is only provided when there                    ‘‘Home medical equipment’’ would be
                                                 the veteran’s rehabilitation goals. The                 is no other means for the veteran to                  defined as movable and durable medical
                                                 additional requirement that these items                 exercise to achieve the rehabilitation                devices used in a home or residential
                                                 be deemed necessary for active and                      goal. Such ‘‘home exercise equipment’’                setting to treat or support treatment of
                                                 regular participation in an activity to                 would only be provided for one                        specific medical conditions and would
                                                 achieve the veteran’s rehabilitation                    location, the veteran’s primary                       include hospital beds, portable patient
                                                 goals, which would be documented in                     residence, which is defined in this                   lifts (such as porch lifts or stair glides),
                                                 the veteran’s medical record, ensures                   rulemaking (as discussed below) under                 portable ramps, ventilators, home
                                                 that items are only provided when their                 proposed § 17.3210 as ‘‘the personal                  dialysis equipment, and infusion,
                                                 regular use is specifically tied to a                   domicile or residential setting in which              feeding, or wound therapy pumps. This
                                                 medical goal, and not provided merely                   the veteran resides the majority of the               definition is intended to encompass
                                                 to support a veteran’s participation in                 year,’’ and this additional criterion                 those medical devices typically found in
                                                 an activity only for personal enjoyment.                would be stated in proposed § 17.3230                 a medical facility setting (e.g., hospital
                                                 Examples of such equipment VA could                     as discussed later in this rulemaking. In             beds and infusion pumps), but that must
                                                 provide to veterans include mono-skis                   identifying the veteran’s primary                     be used in a home or residential setting
                                                 and specially designed wheelchairs to                   residence, we would typically rely upon               for specific medical treatment (most
                                                 play sports such as basketball.                         the veteran’s record with VA, as well as              typically, for continuation of treatment
                                                    ‘‘Cognitive device’’ would be defined                the veteran’s declared residence. The                 initially received in a medical facility
                                                 as an item that compensates for a                       additional criterion that such equipment              setting). The definition of ‘‘home
                                                 cognitive impairment and that is used to                would only be provided for one                        medical equipment’’ would specifically
                                                 maintain or improve a veteran’s                         location, the primary residence, is                   exclude household furniture or
                                                 functional capabilities. Examples of                    current VA practice, and VA has                       furnishings, improvements or structural
                                                 such equipment VA could provide to                      authority to determine that it is                     alterations, or any household appliances
                                                 veterans include tablets and smart                      reasonable pursuant to 38 U.S.C.                      for the same reasons as stated in the
                                                 phones, as well as associated                           1701(6)(F)(iii). In this case, VA has                 definition of ‘‘adaptive household
                                                 technological equipment, applications,                  determined this criterion to be                       item,’’ because such items could not
                                                 and/or software, that can assist a veteran              reasonable because it may not be cost                 reasonably be considered to be medical
                                                 in maintaining daily scheduling of                      effective to provide multiple sets of the             devices. For instance, a hospital bed
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                                                 important tasks or navigating their                     same equipment for multiple locations.                could be provided as ‘‘home medical
                                                 surroundings (e.g., global positioning                  Because we will provide one set of                    equipment,’’ whereas a common bed
                                                 system or GPS).                                         equipment, we believe it is adequate to               frame and mattress could not. As
                                                    ‘‘Communication device’’ would be                    provide this equipment where it is used               proposed in § 17.3230 (later in this
                                                 defined as an item that compensates for                 the most routinely and regularly, i.e.,               rulemaking) ‘‘home medical equipment’’
                                                 a communication deficiency and allows                   the veteran’s primary residence. While                would only be provided for one
                                                 participation in daily communication                    we generally would provide home                       residential setting, the veteran’s primary
                                                 activities. Examples of such equipment                  exercise equipment to the veteran’s                   residence, for the same reasons as stated


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                                                 48022                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 for ‘‘home exercise equipment’’ above.                  identification bracelets, those would not             devices that serve a purely
                                                 In the instance that at-home installation               be provided under these proposed rules                communicative function.
                                                 or delivery is required and the veteran                 as these items would not be an active                    Similarly, medical identification
                                                 has more than one residence, the                        and direct component of a veteran’s                   bracelets would be excluded under this
                                                 Department will deliver the equipment                   medical treatment or rehabilitation                   regulation as they are not a direct and
                                                 to the veteran’s primary residence. We                  pursuant to proposed § 17.3230,                       active component of a veteran’s medical
                                                 note that to the extent the equipment is                described later in this rulemaking.                   treatment or rehabilitation, and
                                                 portable, an individual would be free to                Medical alert devices are passive and                 therefore are not reasonable and
                                                 move it to another location where the                   purely communicative devices, similar                 necessary under this authority. Medical
                                                 veteran may temporarily reside, such as                 to cell phones, which are not used for                identification bracelets are entirely
                                                 another residence during an extended                    specific medical treatment or                         passive, do not actively communicate
                                                 seasonal stay. We will provide such                     rehabilitation and do not contribute                  any information about a veteran, and
                                                 equipment at the veteran’s primary                      directly to a veteran’s medical treatment             merely provide information about the
                                                 residence, as the veteran is usually also                                                                     existence of a condition of a veteran.
                                                                                                         or rehabilitation and would therefore
                                                 receiving professional care or assistance                                                                     Although these may be used during an
                                                                                                         not be provided under this authority.
                                                 from a caregiver who must be at the                                                                           unforeseeable emergency to convey
                                                                                                         Their purpose is to communicate about
                                                 residence at specific times, and which                                                                        information about a veteran, they do not
                                                                                                         an unforeseeable future event, and they               actively or directly medically treat or
                                                 would involve use of the provided                       do not actively communicate clinical or
                                                 ‘‘home medical equipment.’’ While we                                                                          rehabilitate a veteran and any
                                                                                                         medical information about a veteran nor               limitations the veteran may have, and
                                                 generally would provide ‘‘home medical                  do they communicate information that
                                                 equipment’’ to the veteran’s primary                                                                          thus are not ‘‘necessary’’ under this
                                                                                                         contributes directly to a veteran’s                   authority. While these devices could be
                                                 residence, there may be instances when                  medical treatment or rehabilitation
                                                 it may be provided to a veteran’s non-                                                                        considered beneficial to a veteran’s
                                                                                                         pursuant to proposed § 17.3230,                       treatment in limited circumstances, we
                                                 primary residence, as is similar to the                 described later in this rulemaking.
                                                 provision of ‘‘home exercise                                                                                  do not consider the provision of these
                                                                                                         Although these may be used during an                  under this authority as reasonable for
                                                 equipment.’’ For example, a veteran
                                                                                                         unforeseeable emergency to convey                     the same reasons stated above. We note
                                                 may be authorized for a stair glider;
                                                                                                         information about a veteran, they do not              that we currently provide these medical
                                                 however, his or her primary residence
                                                                                                         actively or directly medically treat or               identification bracelets, however for the
                                                 may be a single floor residence. The
                                                                                                         rehabilitate a veteran and any                        reasons discussed, they would be
                                                 veteran may have another residence that
                                                 has more than one floor, and it may be                  limitations the veteran may have, and                 outside the scope of this authority and
                                                 clinically determined that the provision                thus are not ‘‘necessary’’ under this                 would not be authorized to be provided
                                                 of the stair glider at the non-primary                  authority. Medical alert devices are also             pursuant to these proposed regulations.
                                                 residence is necessary as an active and                 programmable to alert whomever the                    We further note that after the
                                                 direct component of the veteran’s                       veteran chooses, and do not necessarily               publication of the final rulemaking, we
                                                 medical treatment or rehabilitation. We                 result in an alert or communication to                would rescind VHA Directive 2009–007,
                                                                                                         a medical professional. These devices                 Provision of Medical Identification (ID)
                                                 also would clarify that prior to any
                                                                                                         also do not necessarily result in an alert            Bracelets and Pendants, to ensure VA
                                                 installation of ‘‘home medical
                                                                                                         that the veteran is in need of medical                policy is consistent with the published
                                                 equipment’’, the owner of the residence
                                                                                                         assistance, as these devices can be used              final rules.
                                                 must agree to the installation of the                                                                            Lastly, we clarify that although
                                                 equipment. We further would clarify                     to alert an individual or entity of a
                                                                                                         general need for assistance. With the                 certain home medical equipment might
                                                 that the definition of ‘‘home medical                                                                         need to be installed in a home to ensure
                                                 equipment’’ would exclude any                           prevalence of, and access to, cell phones
                                                                                                         and other similar technologies that serve             its proper functioning, such as a
                                                 requirement that VA will furnish such                                                                         portable ramp or a hospital bed, such
                                                 items in such a manner as to relieve any                a similar function as medical alert
                                                                                                                                                               equipment must not amount to an
                                                 other person or entity of a contractual                 devices in this context, we believe that
                                                                                                                                                               improvement or structural alteration to
                                                 obligation to furnish these items or                    most, if not all, veterans have access to
                                                                                                                                                               a veteran’s residence. Such
                                                 services to the veteran. This is because                the technology necessary to alert
                                                                                                                                                               improvements or alterations to homes
                                                 such items would not be needed as they                  individuals and/or entities when                      are authorized by section 1717(a)(2) and
                                                 have otherwise been provided for. For                   medical assistance is needed. Thus,                   38 CFR 17.3100 et seq., and are not
                                                 example, a veteran may have contracted                  while these devices could be considered               within the scope of these proposed
                                                 with a residence or residential setting to              beneficial to a veteran’s treatment in                regulations, as stated in the table in
                                                 furnish home medical equipment to the                   limited circumstances, we do not                      proposed § 17.3200(b). This clarification
                                                 veteran.                                                consider the provision of these under                 related to installation would be
                                                    The definition of ‘‘home medical                     this authority as reasonable. The                     established in proposed § 17.3230 as
                                                 equipment’’ would also exclude                          definition of ‘‘medical alert devices’’               discussed later in this rulemaking.
                                                 ‘‘medical alert devices,’’ which, as                    would not apply to alarms or other                       ‘‘Home respiratory equipment’’ would
                                                 discussed later in this proposed rule, we               safety indicators on home medical                     be defined as an item used to provide
                                                 would define as devices designed to                     equipment, such as an alarm to alert an               oxygen therapy or to support or enhance
                                                 summon general safety assistance for a                  individual if a ventilator is unplugged.              respiratory function. We note that home
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                                                 veteran, e.g. a device worn by an                       Such alarms and indicators, therefore,                respiratory equipment would be
                                                 individual to summon medical                            could be provided as part of home                     distinguished from home medical
                                                 assistance in the event of a fall or other              medical equipment. These alarms and                   equipment because we would permit
                                                 incident, or to provide a veteran’s                     indicators that are part of medical                   the provision of additional pieces of
                                                 general medical information to others,                  equipment (such as a ventilator) do                   respiratory equipment as medically
                                                 e.g., medical identification bracelets.                 contribute directly to a veteran’s                    necessary outside of a single home or
                                                 While we currently provide both                         treatment as part of the total function of            residential setting, such as additional
                                                 medical alert devices and medical                       the piece of medical equipment, unlike                portable oxygen tanks when a veteran


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                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                          48023

                                                 might need to travel. Examples of such                  is necessary because ‘‘medical alert                  artificial eyes would not function to
                                                 equipment VA would provide to                           device’’ would be excluded from the                   restore or improve sight, but would
                                                 veterans include compressed oxygen,                     term ‘‘home medical equipment.’’                      provide necessary shape to an eye
                                                 oxygen concentrators, and continuous                       ‘‘Mobility aid’’ would be defined as               socket and prevent objects from entering
                                                 positive airway pressure machines.                      an item that compensates for a mobility               the eye socket.
                                                    ‘‘Household appliances’’ would be                    impairment and that is used to maintain                 ‘‘Replacement item’’ would be
                                                 defined as equipment for use in the                     or improve a veteran’s functional                     defined as an item that is similar or
                                                 home for performance of domestic                        capabilities to be mobile. Examples of                identical to an item provided under
                                                 chores or other domestic tasks,                         such equipment VA would provide to                    proposed § 17.3230(a), and that takes
                                                 including but not limited to a                          veterans include manual and motorized                 the place of such an item. We believe
                                                 refrigerator, stove, washing machine,                   wheelchairs, canes, walkers, and                      this definition captures the common
                                                 and vacuum cleaner. We believe this                     equipment to assist veterans with                     meaning and understanding of this
                                                 definition captures the common                          reaching for or grasping items. We                    term.
                                                 meaning and understanding of this                       would exclude a service or guide dog                    ‘‘VA-authorized vendor’’ would be
                                                 term.                                                   from this definition because the                      defined as a vendor that has been
                                                    ‘‘Household furniture or furnishing’’                provision of certain benefits for service             authorized by VA to provide items and
                                                 would be defined as an item commonly                    or guide dogs is not within the scope of              services under § 17.3230. We believe
                                                 used to make a home habitable or                        these proposed regulations as stated in               this definition is self-explanatory. This
                                                 otherwise used to ornament a home,                      the table in proposed § 17.3200(b). VA                definition would be relevant to the
                                                 including but not limited to tables,                    has published regulations concerning                  discussion later in this proposed rule
                                                 chairs, desks, lamps, cabinets, non-                    benefits for service and guide dogs at 38             regarding the furnishing of items and
                                                 hospital beds, curtains, and carpet(s).                 CFR 17.148.                                           services in proposed § 17.3240.
                                                 We believe this definition captures the                    ‘‘Orthotic device’’ would be defined
                                                                                                                                                               17.38. Medical Benefits Package and
                                                 common meaning and understanding of                     as an item fitted externally to the body
                                                                                                                                                               17.3220. Eligibility
                                                 this term.                                              that is used to support, align, prevent,
                                                    ‘‘Implant’’ would be defined as any                  or correct deformities or to improve the                 Proposed § 17.3220 would clarify
                                                 biological or non-biological material                   function of movable parts of the body.                veteran eligibility for prosthetic and
                                                 that is manufactured or processed to be                 We believe this definition captures the               rehabilitative items and services
                                                 placed into a surgically or naturally                   common meaning and understanding of                   provided under sections 1701(6)(F) and
                                                 formed cavity on the human body; is                     this term as well as its common                       1710(a). As explained previously in this
                                                 covered with tissue, has the potential to               meaning and use in the health care                    rulemaking, VA is authorized under
                                                 be covered with tissue, or is                           industry. Examples of such items VA                   sections 1701(6)(F)(iii) and 1710(a) to
                                                 permanently embedded in tissue; does                    would provide to veterans include leg                 provide those prosthetic and
                                                 not dissolve or dissipate within the                    braces, upper extremity splints and                   rehabilitative items and services that VA
                                                 body; and is not a living organ,                        braces, and functional electrical                     determines are medically necessary to
                                                 embryonic tissue, blood, or blood                       stimulation devices such as Bioness® or               assist a veteran to compensate for loss
                                                 product. VA provides implants as part                   WalkAide®.                                            of mobility or loss of other functional
                                                 of the prosthetics program, and this                       ‘‘Primary residence’’ would be                     abilities, where the veteran is otherwise
                                                 definition characterizes such implants                  defined as the personal domicile or                   receiving care or services under chapter
                                                 consistently with VA’s current                          residential setting in which the veteran              17 of title 38 U.S.C. Section
                                                 provision of implants, and to that extent               resides the majority of the year. We                  17.38(a)(1)(viii), in turn includes the
                                                 would not reflect a change in the scope                 believe this definition captures the                  provision of ‘‘durable medical
                                                 of benefits available to eligible veterans.             common meaning and understanding of                   equipment and prosthetic and orthotic
                                                    ‘‘Improvements or structural                         this term. While a person may maintain                devices’’ as part of VA’s ‘‘medical
                                                 alterations’’ means a modification to a                 more than one residence, they may only                benefits package.’’ We would first revise
                                                 home or to an existing feature or fixture               have one primary residence at a time.                 § 17.38(a)(1)(viii) to use the term
                                                 of a home, including repairs to or                      This would include any residential                    ‘‘prosthetic and rehabilitative items and
                                                 replacement of previously improved or                   setting the veteran owns, rents, or in                services’’ as proposed in these
                                                 altered features or fixtures. This term                 which the veteran otherwise resides.                  regulations, and would cross reference
                                                 would be defined the same as it is                         ‘‘Prosthetic device’’ would be defined             this term with citations to the proposed
                                                 defined in 38 CFR 17.3101 (i.e., a                      as an item that replaces a missing or                 regulations in this rulemaking so it is
                                                 modification to a home or to an existing                defective body part. We believe this                  clear that such items and services under
                                                 feature or fixture of a home, including                 definition captures the common                        § 17.38(a)(1)(viii) are provided in
                                                 repairs to or replacement of previously                 meaning and understanding of this term                accordance with proposed §§ 17.3200
                                                 improved or altered features or fixtures).              as well as its common meaning and use                 through 17.3250.
                                                 Such improvements or structural                         in the health care industry. Examples of                 We would also revise § 17.38(b) to
                                                 alterations are authorized by section                   such items VA would provide to                        reflect that prosthetic and rehabilitative
                                                 1717(a)(2) and 38 CFR 17.3100 et seq.,                  veterans include artificial limbs and                 items and services authorized in
                                                 and are not within the scope of these                   artificial eyes. We note that certain                 § 17.38(a)(1)(viii) are excluded from the
                                                 proposed regulations, as stated in the                  prosthetic devices may not have                       ‘‘promote, preserve, or restore’’ standard
                                                 table in proposed § 17.3200(b).                         mechanical or other functionality, but                under § 17.38(b). As previously
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                                                    ‘‘Medical alert device’’ would mean                  nonetheless could be considered                       discussed in this rulemaking, the
                                                 an item designed to summon general                      medically necessary and not merely                    standard of ‘‘promote, preserve, or
                                                 safety assistance for a veteran, or that                cosmetic in nature. For instance, certain             restore’’ under § 17.38(b) is not specific
                                                 provides a veteran’s general medical                    artificial hands may not have                         enough to distinguish when prosthetic
                                                 information to others. This definition                  mechanical functions to grasp objects,                and rehabilitative items should be
                                                 would not include alarms or other safety                but the use of such devices equalizes                 provided because they are medically
                                                 indicators for home medical equipment.                  weight distribution in the arm and                    necessary, versus when an item or
                                                 As previously discussed, this definition                across the body. As another example,                  service would not be provided because


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                                                 48024                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 it is only desired. Using a standard other              provided are intended to be limited to                of the equipment. Additionally,
                                                 than that of ‘‘promote, preserve, or                    those that accommodate a veteran’s                    proposed § 17.3230(a)(6) would
                                                 restore’’ would also be consistent with                 medical treatment or rehabilitation. This             establish that home medical equipment
                                                 the authorizing statutes, sections                      would also be consistent with the                     must not require installation that
                                                 1701(6)(F) and 1710(a), requiring that                  authorizing statutes, sections 1701(6)(F)             amounts to a home improvement or
                                                 VA provide those items and services                     and 1710(a), requiring that VA provide                structural alteration to a veteran’s
                                                 that are necessary and reasonable.                      those items and services that are                     primary residence. Such improvements
                                                 However, in a note to proposed                          necessary and reasonable. Proposed                    and alterations to homes are authorized
                                                 § 17.3230, we would state that the                      § 17.3230(a)(1) through (a)(15) would                 by 38 U.S.C. 1717(a)(2) and controlled
                                                 exclusions in § 17.38(c) apply to the                   list the categories of items and services             by other implementing regulations, as
                                                 provision of items and services pursuant                that have been and would continue to                  referenced in the table in proposed
                                                 to § 17.3230.                                           be provided by VA as prosthetic or                    § 17.3200(b). Lastly, we would require
                                                    Proposed § 17.3220 would then                        rehabilitative items or services.                     an additional restriction in proposed
                                                 establish eligibility for prosthetic and                Definitions of the items and services to              § 17.3230(a)(2) and (a)(5) that ‘‘adaptive
                                                 rehabilitative items and services by                    be provided in proposed § 17.3230(a)(1)               recreation equipment’’ and ‘‘home
                                                 requiring that veterans be enrolled in                  through (a)(15), as well as examples of               exercise equipment’’ be provided when
                                                 VA’s enrollment system under § 17.36                    such items, are provided in the                       such equipment would achieve the
                                                 or exempt from such enrollment under                    discussion of proposed § 17.3210, and                 veteran’s rehabilitation goals as
                                                 § 17.37, and requiring that such veterans               we do not reiterate that information                  documented in the veteran’s medical
                                                 are otherwise receiving care under                      generally below. We propose, however,                 record. This is because these types of
                                                 chapter 17 of title 38 U.S.C. These two                                                                       equipment are generally provided to
                                                                                                         additional criteria that must be met in
                                                 eligibility criteria would be in proposed                                                                     achieve specific rehabilitation goals,
                                                                                                         proposed § 17.3230(a)(5) and (a)(6) for
                                                 § 17.3220(a)–(b), respectively. Proposed                                                                      while the other items and services
                                                                                                         ‘‘home exercise equipment’’ and ‘‘home
                                                 § 17.3220(b) would further describe the                                                                       provided under this section are not.
                                                                                                         medical equipment,’’ respectively. We
                                                 concept of ‘‘otherwise receiving care’’ to                                                                       Proposed § 17.3230(a)(12) would
                                                                                                         reiterate from the discussion of the
                                                 include where a veteran is prescribed a                                                                       authorize the repair of any item
                                                                                                         proposed definitions earlier in this
                                                 prosthetic or rehabilitative item or                                                                          provided under proposed § 17.3230(a),
                                                                                                         rulemaking that proposed
                                                 service by a VA provider or an                                                                                unless cost or clinical reasons favor
                                                                                                         § 17.3230(a)(5) and (a)(6) would                      replacing the item. Even if not initially
                                                 authorized non-Department provider.
                                                 We believe that by receiving a                          establish a restriction that both ‘‘home              prescribed by VA, an item under
                                                 prescription the veteran would be                       exercise equipment’’ and ‘‘home                       proposed § 17.3230(a) could be repaired
                                                 receiving care under chapter 17.                        medical equipment’’ would only be                     if the VA provider or authorized non-
                                                                                                         provided for one location, generally the              Department provider determines that
                                                 17.3230. Authorized Items and Services                  veteran’s primary residence. This                     the item is still medically necessary and
                                                    Proposed § 17.3230(a) would state                    additional criterion that such equipment              writes an authorized prescription for the
                                                 that VA would provide veterans who are                  would only be provided for one location               veteran. This is consistent with current
                                                 eligible under § 17.3220 with items and                 is current VA practice and is reasonable              VA practice, and is reasonable to ensure
                                                 services that would be listed in                        because we believe it is adequate in                  that veterans have necessary and
                                                 proposed § 17.3230(a)(1)–(15) as                        most cases to provide this equipment at               properly functioning items.
                                                 described below. Proposed § 17.3230(a)                  the veteran’s primary residence, a term                  Proposed § 17.3230(a)(13) would
                                                 would further state that VA will provide                which is previously defined and                       authorize the replacement of items
                                                 items and services listed in proposed                   discussed in this rulemaking. Relatedly,              provided under proposed § 17.3230 if
                                                 § 17.3230(a)(1)–(15), if VA determines                  it is current VA practice to provide one              the original items have been damaged,
                                                 that the items or services serve as a                   piece of equipment; therefore, we                     destroyed, lost, or stolen, or if
                                                 direct and active component of the                      believe it is also reasonable to provide              replacement is clinically indicated.
                                                 veteran’s medical treatment or                          that equipment to the veteran’s primary               Proposed paragraph (a)(13) would
                                                 rehabilitation, and do not merely                       residence, as that is the personal                    establish that if items are serviceable
                                                 support the comfort or convenience of                   domicile or residential setting in which              and still meet the veteran’s need, VA
                                                 the veteran. The statement in proposed                  the veteran resides the majority of the               will not replace such items for the sole
                                                 § 17.3230(a) that items and services                    year, and is where we believe the                     purpose of obtaining a newer model of
                                                 need to be a direct and active                          equipment will likely be used most                    the same or similar item. Proposed
                                                 component of the veteran’s medical                      routinely and regularly. If the veteran               § 17.3230(a)(13) sets forth a reasonable
                                                 treatment or rehabilitation and not                     has more than one residence, the                      restriction that would allow VA to
                                                 merely for the comfort or convenience                   Department will provide the equipment                 provide replacement items as clinically
                                                 of the veteran is consistent with VA                    to the veteran’s primary residence. We                indicated, for the benefit of all veterans
                                                 practice. As stated previously in this                  note that to the extent the equipment is              to whom VA must provide these items
                                                 rulemaking, the more specific criteria                  portable, an individual would be free to              and services.
                                                 related to medical necessity in proposed                move it to another location where the                    We note that generally we would
                                                 § 17.3230(a) are needed because the                     veteran may temporarily reside, such as               provide veterans with one item or
                                                 ‘‘promote, preserve, or restore’’ criteria              another residence during an extended                  service under this proposed rule.
                                                 in § 17.38(b) may be appropriate in                     seasonal stay. As indicated previously,               However, there may be instances when
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                                                 terms of medical services generally, but                there may be limited instances when                   we would provide a veteran with a
                                                 are not specific enough to distinguish                  ‘‘home exercise equipment’’ or ‘‘home                 spare item. The provision of spare items
                                                 when prosthetic and rehabilitative items                medical equipment’’ may be provided at                would be authorized if it is clinically
                                                 and services should be provided                         a non-primary residence based on a                    determined that a veteran would
                                                 because they are medically necessary,                   clinical determination. Prior to any                  immediately require another identical or
                                                 versus when an item or service would                    installation of such equipment in the                 similar item. For example, the provision
                                                 not be provided because it is only                      residence, the owner of the residence                 of a spare item may be clinically
                                                 desired. The items and services                         would have to agree to the installation               determined to be immediately required


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                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                          48025

                                                 if an item provided under the proposed                  the wearing of a prosthetic device is                 veterans. However, VA also may use, on
                                                 regulations were to fail or require                     specifically identified as a medical                  a case-by case basis, VA-authorized
                                                 rotation (e.g., routine cleaning) as a                  service under section 1701(6)(F)(ii), and             vendors to provide greater access, lower
                                                 component of proper use. VA may also                    we would therefore include it in this                 cost, and/or a wider range of items and
                                                 provide an identical or similar item in                 proposed rule. We contrast this with the              services. We would clarify in regulation
                                                 the event of a failure of an item                       clothing allowance provided under                     that this administrative business
                                                 provided under these regulations if it is               § 3.810 and authorized by 38 U.S.C.                   decision is made solely by VA to
                                                 determined that it would otherwise be                   1162, which is intended to provide a                  eliminate any possible confusion as to
                                                 detrimental to the veteran’s medical                    clothing allowance only to veterans                   whether a veteran has a right to request
                                                 treatment or rehabilitation to not                      with certain service-connected                        items or services generally, or to request
                                                 provide a spare item. This is current VA                disabilities, apart from the provision of             specific items or services from a
                                                 practice and is reasonable to ensure that               medical services under section 1710.                  provider other than VA, and to clarify
                                                 veterans would have access to items that                See 118 Cong. Rec. S. 20748, 20751                    for the benefit of VA-authorized vendors
                                                 are necessary on a continuous basis if                  (1972) (legislative history related to the            that VA retains this discretion as part of
                                                 the veteran could not wait for repair or                bill that would enact section 1162,                   our duty to administer this program in
                                                 replacement, such as a spare wheelchair                 explaining that a new clothing                        a legally sufficient, fiscally responsible
                                                 or spare prosthetic limb. VA’s provision                allowance would assist veterans to                    manner.
                                                 of items as explained above attempts to                 purchase non-specialized, regular
                                                 ensure that veterans have working,                      clothing that may experience wear and                    Proposed § 17.3240(b) would establish
                                                 usable equipment when needed. We                        tear due to use of a wheelchair or                    that, except for emergency treatment
                                                 discuss the provision of spare items in                 prosthetic device, separate from the                  reimbursable under 38 CFR 17.120 et.
                                                 a note at the end of proposed § 17.3230.                benefit for specialized clothing due to               seq or 17.1000 et seq., prior
                                                    Additionally, VA’s reimbursement of                  the wearing of a prosthetic device that               authorization is required from VA for
                                                 emergency care under 38 U.S.C. 1725                     VA provided as a medical service).                    VA-authorized vendors to obtain
                                                 and 1728 ensures that VA may                               Proposed § 17.3230(a)(15) would                    reimbursement for furnishing items or
                                                 reimburse some veterans for needed                      authorize training with and fitting of                services under § 17.3230 to veterans.
                                                 repairs to equipment if such repairs                    items as considered necessary. Training               Prior authorization may be obtained by
                                                 cannot wait for prior VA authorization.                 and fitting of prosthetic appliances is               contacting VA. Paragraph (b) will help
                                                 For these reasons, and to be consistent                 required by 38 U.S.C. 1714(a), is current             ensure that the highest quality and most
                                                 with section 1728, we propose removing                  VA practice, and is reasonable to                     clinically appropriate device is
                                                 § 17.122, which authorizes the repair of                ensure, to the extent practicable, that               provided, as prescribed by VA
                                                 prosthetic and similar items without                    veterans safely operate items and that                providers, and that items or services are
                                                 prior authorization from VA if the                      items are properly maintained to                      not subject to potential alterations or
                                                 expenses were incurred in the care of an                promote their longevity. We would                     substitutions by VA-authorized vendors
                                                 adjudicated service-connected                           additionally remove current § 17.153                  without VA oversight.
                                                 disability. Section 17.122 is not needed,               related to training and fitting of
                                                 as sections 1725 and 1728 would                         prosthetic and similar items, as it would             17.3250. Veteran Responsibilities
                                                 provide for VA payment of repairs                       be duplicative of proposed                               Proposed § 17.3250 would establish
                                                 without prior VA authorization as                       § 17.3230(a)(15).                                     responsibilities of veterans who are
                                                 described above, and the other VA                          Proposed § 17.3230(b) would establish              provided prosthetic and rehabilitative
                                                 regulations that currently implement                    that unless items provided under                      items and services. Proposed
                                                 these sections (sections 17.120 et seq.                 proposed § 17.3230(a) are loaned to a                 § 17.3250(a) would establish that
                                                 and 17.1000 et seq.) are sufficient to                  veteran, based on a clinical                          veterans must use items provided under
                                                 authorize payment. Further, we find no                  determination, such items become the                  proposed § 17.3230(a) in the manner for
                                                 basis for treating reimbursement of the                 property of the veteran once the veteran
                                                                                                                                                               which they are prescribed, and
                                                 expenses of prosthetic repairs                          takes possession of those items. This
                                                                                                                                                               consistent with the manufacturer’s
                                                 differently from the expenses of other                  would ensure that veterans have full use
                                                                                                                                                               instructions and any training provided.
                                                 types of ‘‘emergency care’’. In addition                of, and responsibility for, items
                                                                                                                                                               This would ensure, to the extent
                                                 to removing § 17.122, we propose                        provided by VA, and will use them in
                                                                                                                                                               practicable, veteran safety in using the
                                                 deleting from § 17.120 the following                    the manner in which they are
                                                                                                                                                               item as well as the longevity of the item.
                                                 language, ‘‘(except prosthetic                          prescribed. If items will be loaned, a
                                                 appliances, similar devices, and                        written agreement (which would                           Proposed § 17.3250(b) would establish
                                                 repairs),’’ because we do not see a need                include roles and responsibilities for the            that, except for emergency care under 38
                                                 to treat the provision of these                         duration of the loan) with the veteran                CFR 17.120 et. seq. or 38 CFR 17.1000
                                                 appliances, devices and repairs any                     would be entered into to ensure that it               et seq., veterans must obtain prior
                                                 differently from other emergency care                   is clear the veteran does not own the                 authorization from VA if they want VA
                                                 provided under this section. Removing                   item, and that the veteran fully                      to reimburse a VA-authorized vendor for
                                                 § 17.122 is needed as described above,                  understands and agrees to the terms of                such items and services provided under
                                                 and would clarify that the access to                    the loan.                                             § 17.3230. This would reinforce general
                                                 prosthetic repair services without prior                                                                      VA oversight requirements already
                                                                                                         17.3240. Furnishing Authorized Items                  proposed in these regulations to ensure
                                                 authorization in medical emergencies
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                                                 for veterans would be authorized under                  and Services                                          the highest quality and most appropriate
                                                 sections 1725 and 1728 and their                          Proposed § 17.3240(a) would establish               item or service is provided, and would
                                                 implementing regulations.                               that VA will determine whether VA or                  distinctly provide notice to veterans and
                                                    Proposed § 17.3230(a)(14) would                      a VA-authorized vendor will furnish                   vendors that VA will not be responsible
                                                 authorize the provision of specialized                  authorized items and services under                   for the cost of items and services
                                                 clothing made necessary by the wearing                  § 17.3230 to eligible veterans. When VA               provided to veterans who are not
                                                 of a prosthetic device. The provision of                has the capacity or inventory, VA                     preauthorized by VA or otherwise
                                                 specialized clothing made necessary by                  directly provides items and services to               covered as emergency care.


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                                                 48026                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 Rescission of Use of Prosthetic Service                 description of the card as a ‘‘debit’’ card           approval; paragraph 4.b. sets forth VA,
                                                 Card and Related VA Policy                              in VHA Handbook 1173.1). Even when                    vendor, and veteran responsibilities
                                                    We note that after the publication of                the card has been used, third party                   related to the administration of
                                                 this rulemaking is final, we would                      vendors have still had to submit an                   prosthetic service cards; paragraphs
                                                 rescind, in their entirety, VHA                         invoice and other documentation to VA                 4.c.(1)–c.(7) include prosthetic service
                                                 Handbooks 1173.06, 1173.1. 1173.10,                     to get reimbursed for the repair.                     card benefits limits, and the processes
                                                 1173.2, 1173.3, VA Forms 10–2501 and                    Therefore, use of the prosthetic service              for prosthetic service card preparation
                                                 10–2520, and VA Form Letter 10–55;                      card has not typically been any less                  and issuance, prosthetic service card
                                                 and develop new VHA policy to ensure                    burdensome for third party vendors to                 invoice preparation and issues, repairs
                                                 VA’s provision of prosthetics is                        receive payment from VA than if such                  authorization, and prosthetic service
                                                 consistent with the published final                     vendors had contacted VA for                          card revocation or cancellation; and
                                                 rules. Any references to the prosthetic                 authorization prior to the repair. The                paragraph 6.c.(4) requires repairs of
                                                 service card would be excluded from                     intent of the card was to decrease the                artificial limbs, braces, wheelchairs, and
                                                 future VHA policies and forms                           burden for both veterans and third party              other appliances on presentation by the
                                                 implementing these rules as further                     vendors, but it has not functioned                    veteran of a valid prosthetic service
                                                 explained below.                                        consistently in this manner.                          card.
                                                    As part of this plan, we specifically                Additionally, the card does not                          Paragraph 10.a.(1) of VHA Handbook
                                                                                                         appropriately reference sections 1725                 1173.3 states that repairs may be
                                                 note that future VA policy would not
                                                                                                         and 1728 as the authorities to provide                obtained through commercial sources
                                                 include portions of existing VA policy
                                                                                                         repairs without prior authorization,                  using VA Form 10–2501, and paragraph
                                                 that reference ‘‘prosthetic service cards’’
                                                                                                         which creates problems where the card                 10.c. of VHA Handbook 1173.3
                                                 and establish limits on reimbursement
                                                                                                         either does not recognize the applicable              encourages the use of prosthetic service
                                                 or payment amounts for emergency
                                                                                                         criteria in sections 1725 and 1728 (for               cards for those veterans eligible for a
                                                 repairs of prosthetic items through the
                                                                                                         instance, related to eligibility under                prosthetic service card.
                                                 use of a ‘‘prosthetic service card’’ to                                                                          Paragraphs 7.a. and 7.e. of VHA
                                                 obtain repairs from VA-authorized                       sections 1725 and 1728), or establishes
                                                                                                         criteria that may be inconsistent with                Handbook 1173.06 authorize the use of
                                                 vendors without prior authorization                                                                           prosthetic service cards for repairs to
                                                 from VA. A ‘‘prosthetic service card’’ is               1725 and 1728 (for instance, the
                                                                                                         prosthetic service card contains a space              wheelchairs. Paragraphs 3.i.(9) and 4.c.
                                                 a piece of paper (VA Form 10–2501) that                                                                       in VHA Handbook 1173.10 authorize
                                                 VA has issued to veterans in the past for               for VA to set a limit on any repair costs).
                                                                                                                                                               the use of prosthetic service cards for
                                                 the purpose of providing a third party                     Currently, references to the prosthetic            repairs to orthotic devices.
                                                 vendor with notice that VA would                        service card (PSC) are located in                        Lastly, VA Form 10–2501, VA Form
                                                 reimburse such vendor for the provision                 paragraphs 3.tt, 8.a, 9.i, 9.h, 9.m of VHA            10–2520, and VA Form Letter 10–55
                                                 of certain repairs, up to certain amounts.              Handbook 1173.1; paragraphs 4.a.(2)–                  also reference prosthetic service cards.
                                                 VA Form 2520 in the past has been the                   a.(7), 4.b., 4.c.(1)–c.(7), and 6.c.(4) of            Currently, VA Form 10–2520 is an
                                                 invoice used by vendors to submit to                    VHA Handbook 1173.2; paragraphs                       approved information collection under
                                                 VA requests for payment for repairs                     10.a.(1) and 10.c of VHA Handbook                     OMB Control Number 2900–0188,
                                                 performed under the prosthetic service                  1173.3; paragraphs 7.a. and 7.e. of VHA               which is set to expire on October 31,
                                                 card. This prosthetic service card was                  Handbook 1173.06; and paragraphs                      2017. On August 22, 2017, we issued a
                                                 intended to allow third party vendors to                3.i.(9) and 4.c. in VHA Handbook                      Federal Register (FR) Notice informing
                                                 forego the normal process of contacting                 1173.10. Paragraphs 3.tt and 9.h in VHA               the public of the opportunity to
                                                 VA first for authorization, and instead                 Handbook 1173.1 both define ‘‘VA Form                 comment on the proposed renewal of
                                                 submit an invoice to VA for the cost of                 10–2501, Prosthetic Service Card                      that information collection. 82 FR
                                                 repairs after they were completed. The                  (PSC).’’ Paragraph 8.a. in VHA                        39951. While we are requesting renewal
                                                 card was intended to be used if it was                  Handbook 1173.1 references requests for               of that collection, we now propose to
                                                 not feasible for a VA-authorized vendor                 payment of PSC (i.e. prosthetic service               eliminate VA Form 10–2520 under that
                                                 to contact VA for authorization and the                 card) repairs. Paragraph 9.i in VHA                   existing collection for the reasons
                                                 repair was immediately necessary, such                  Handbook 1173.1 defines ‘‘VA Form 10–                 explained above as part of this proposed
                                                 as when a repair was needed after VA                    2520, Prosthetic Service Card Invoice’’,              rule. Public comments on the
                                                 office hours. However, these prosthetic                 and paragraph 9.m. defines ‘‘VA Form                  discontinuance of VA Form 10–2520
                                                 service cards have not been widely or                   Letter 10–55, Authority to Exceed                     should be submitted as part of this
                                                 consistently used by veterans or vendors                Repair Costs of Prosthetic Appliances’’               rulemaking for consideration by VA.
                                                 for the purpose of obtaining VA                         as a letter of authorization forwarded to             While related, VA Form 10–2015 and
                                                 approval of emergency repairs. First,                   a provider of PSC (i.e. prosthetic service            VA Form Letter 10–55 are not
                                                 veterans in many instances have lost                    card) repairs when the cost of that repair            information collections, did not require
                                                 their prosthetic service cards or have                  exceeds the limit authorized by the PSC               OMB approval prior to issuance, and
                                                 not carried the card on their person to                 (i.e. prosthetic service card). In VHA                thus are not part of that Federal Register
                                                 be able to present to third party vendors.              Handbook 1173.2, paragraph 4.a.(2)                    Notice.
                                                 Second, even when presented with the                    requires that repairs be obtained by use                 As previously stated, to ensure
                                                 card, many third party vendors have                     of the prosthetic service card;                       consistency with the published final
                                                 nonetheless contacted VA for                            paragraphs 4.a.(3)–a.(7) detail                       regulations, we would rescind all
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                                                 authorization prior to providing repairs.               requirements that PSCs be provided by                 relevant and applicable handbooks, and
                                                 The card itself is merely a piece of paper              all prosthetic programs at field facilities,          develop a new VHA policy document or
                                                 that provides notice that VA will                       authority for equipment repairs and                   documents. Any references to prosthetic
                                                 reimburse a vendor for certain repairs                  services using prosthetic service cards,              service cards in existing policies would
                                                 up to certain amounts—it is not a pre-                  monetary limits for prosthetic service                be excluded from that future policy
                                                 paid credit card or other means of                      cards, responsibility for payment of                  document or documents for the reasons
                                                 providing immediate payment to a VA-                    prosthetic service card invoices, and                 mentioned above. We would also
                                                 authorized vendor (despite the                          payment for repairs made without prior                discontinue the use of the related forms


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                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                               48027

                                                 and letters previously identified in this               12866 (Regulatory Planning and                        electronically as an official document of
                                                 section. As part of this rulemaking, we                 Review) defines a ‘‘significant                       the Department of Veterans Affairs. Gina
                                                 welcome any public comments on these                    regulatory action,’’ requiring review by              S. Farrisee, Deputy Chief of Staff,
                                                 efforts as they relate to this rulemaking.              the Office of Management and Budget                   approved this document on October 11,
                                                    Although we would rescind the                        (OMB) as ‘‘any regulatory action that is              2017, for publication.
                                                 prosthetic service card and the policies                likely to result in a rule that may: (1)
                                                 and forms governing its use, there                      Have an annual effect on the economy                  List of Subjects in 38 CFR Part 17
                                                 would remain, as explained previously,                  of $100 million or more or adversely                    Administrative practice and
                                                 statutory and regulatory authority (38                  affect in a material way the economy, a               procedure, Government contracts,
                                                 U.S.C. 1725 and 1728, 38 CFR 17.120 et                  sector of the economy, productivity,                  Health care, Health facilities, Health
                                                 seq. and 17.1000 et seq.) to reimburse                  competition, jobs, the environment,                   professions, Medical devices, Veterans.
                                                 some vendors or veterans for the cost of                public health or safety, or State, local,
                                                                                                                                                                 Dated: October 11, 2017.
                                                 some emergency, unauthorized repairs.                   or tribal governments or communities;
                                                                                                                                                               Janet Coleman,
                                                 VA could also obviate the need for                      (2) Create a serious inconsistency or
                                                 veterans to obtain emergency repairs                    otherwise interfere with an action taken              Chief, Office of Regulation Policy &
                                                                                                                                                               Management, Office of the Secretary,
                                                 from vendors by providing spares for                    or planned by another agency; (3)
                                                                                                                                                               Department of Veterans Affairs.
                                                 prosthetic and rehabilitative items                     Materially alter the budgetary impact of
                                                 under § 17.3230, as clinically                          entitlements, grants, user fees, or loan                For the reasons set forth in the
                                                 appropriate.                                            programs or the rights and obligations of             preamble, we propose to amend 38 CFR
                                                                                                         recipients thereof; or (4) Raise novel                part 17 as follows:
                                                 Effect of Rulemaking
                                                                                                         legal or policy issues arising out of legal
                                                   The Code of Federal Regulations, as                   mandates, the President’s priorities, or              PART 17—MEDICAL
                                                 proposed to be revised by this proposed                 the principles set forth in this Executive
                                                 rulemaking, would represent the                         Order.’’                                              ■ 1. The authority citation for part 17
                                                 exclusive legal authority on this subject.                 The economic, interagency,                         continues to read as follows:
                                                 No contrary guidance or procedures                      budgetary, legal, and policy                            Authority: 38 U.S.C. 501, and as noted in
                                                 would be authorized. All VA guidance                    implications of this regulatory action                specific sections.
                                                 would be read to conform with this                      have been examined, and it has been
                                                 proposed rulemaking if possible or, if                  determined not to be a significant                    ■ 2. Amend § 17.38 by revising
                                                 not possible, such guidance would be                    regulatory action under Executive Order               paragraph (a)(1)(viii) and revising
                                                 superseded by this rulemaking.                          12866. VA’s impact analysis can be                    paragraph (b). The revisions read as
                                                                                                         found as a supporting document at                     follows:
                                                 Paperwork Reduction Act
                                                                                                         http://www.regulations.gov, usually                   § 17.38.   Medical Benefits Package.
                                                   This proposed rule contains no                        within 48 hours after the rulemaking
                                                 provisions constituting a collection of                 document is published. Additionally, a                   (a) * * *
                                                 information under the Paperwork                         copy of the rulemaking and its impact                    (1) * * *
                                                 Reduction Act of 1995 (44 U.S.C. 3501–                  analysis are available on VA’s Web site                  (viii) Prosthetic and rehabilitative
                                                 3521).                                                  at http://www1.va.gov/orpm/, by                       items and services as authorized under
                                                 Regulatory Flexibility Act                              following the link for ‘‘VA Regulations               §§ 17.3200–.3250, and eyeglasses and
                                                                                                         Published.’’                                          hearing aids as authorized under
                                                    The Secretary hereby certifies that                                                                        § 17.149.
                                                 this proposed rule would not have a                     Unfunded Mandates
                                                                                                                                                               *      *     *      *     *
                                                 significant economic impact on a                           The Unfunded Mandates Reform Act
                                                 substantial number of small entities as                                                                          (b) Provision of the ‘‘medical benefits
                                                                                                         of 1995 requires, at 2 U.S.C. 1532, that              package’’. Care referred to in the
                                                 they are defined in the Regulatory                      agencies prepare an assessment of
                                                 Flexibility Act, 5 U.S.C. 601–612.                                                                            ‘‘medical benefits package’’ (except for
                                                                                                         anticipated costs and benefits before                 prosthetics and rehabilitative items and
                                                 Therefore, pursuant to 5 U.S.C. 605(b),                 issuing any rule that may result in the
                                                 these amendments would be exempt                                                                              services authorized in paragraph
                                                                                                         expenditure by State, local, and tribal               (a)(1)(viii) of this section) will be
                                                 from the initial and final regulatory                   governments, in the aggregate, or by the
                                                 flexibility analysis requirements of 5                                                                        provided to individuals only if it is
                                                                                                         private sector, of $100 million or more               determined by appropriate healthcare
                                                 U.S.C. 603 and 604.                                     (adjusted annually for inflation) in any              professionals that the care is needed to
                                                 Executive Orders 12866 and 13563                        one year. This proposed rule would                    promote, preserve, or restore the health
                                                                                                         have no such effect on State, local, and              of the individual and is in accord with
                                                    Executive Orders 12866 and 13563                     tribal governments, or on the private
                                                 direct agencies to assess the costs and                                                                       generally accepted standards of medical
                                                                                                         sector.                                               practice.
                                                 benefits of available regulatory
                                                 alternatives and, when regulation is                    Catalog of Federal Domestic Assistance                *      *     *      *     *
                                                 necessary, to select regulatory                           The Catalog of Federal Domestic                     § 17.120   [Amended].
                                                 approaches that maximize net benefits                   Assistance numbers and titles for the
                                                 (including potential economic,                          programs affected by this document are                ■ 3. Amend the introductory text of
                                                 environmental, public health and safety                 64.009, Veterans Medical Care Benefits;               § 17.120 by removing ‘‘(except
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                                                 effects, and other advantages;                          64.013, Veterans Prosthetic Appliances.               prosthetic appliances, similar devices,
                                                 distributive impacts; and equity).                                                                            and repairs)’’.
                                                 Executive Order 13563 (Improving                        Signing Authority
                                                                                                                                                               § 17.122   [Removed].
                                                 Regulation and Regulatory Review)                         The Secretary of Veterans Affairs, or
                                                 emphasizes the importance of                            designee, approved this document and                  ■ 4. Remove § 17.122.
                                                 quantifying both costs and benefits,                    authorized the undersigned to sign and                ■ 5. Revise the undesignated center
                                                 reducing costs, harmonizing rules, and                  submit the document to the Office of the              heading that precedes § 17.148 to read
                                                 promoting flexibility. Executive Order                  Federal Register for publication                      as follows:


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                                                 48028                       Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 Sensory and Other Rehabilitative Aids                               Prosthetic and Rehabilitative Items And                                  (b) Scope. Sections 17.3200 through
                                                                                                                     Services                                                               17.3250 apply only to items and
                                                 §§ 17.150       [Removed and reserved]
                                                                                                                                                                                            services listed in § 17.3230(a) and
                                                                                                                     § 17.3200      Purpose and scope.
                                                 §§ 17.153       [Removed and reserved]                                                                                                     authorized as medical services under 38
                                                                                                                       (a) Purpose. The purpose of
                                                                                                                                                                                            U.S.C. 1701(6)(F) and 38 U.S.C. 1710(a).
                                                 ■ 6. Remove and reserve §§ 17.150 and                               §§ 17.3200 through 17.3250 is to
                                                                                                                                                                                            The provision of the items or services
                                                 17.153.                                                             establish eligibility and other criteria for
                                                                                                                     the provision to veterans of the                                       and payments in the table below are
                                                 ■ 7. Add an undesignated center                                                                                                            authorized in whole or in part by
                                                                                                                     prosthetic and rehabilitative items and
                                                 heading and §§ 17.3200 through                                      services, listed in § 17.3230, authorized                              separate statutes and controlled by other
                                                 17.3250, to read as follows:                                        as medical services under 38 U.S.C.                                    implementing regulations:
                                                                                                                     1701(6)(F) and 38 U.S.C. 1710(a).

                                                                              Item or service                                                                        Statute                                                   Regulation(s)

                                                 Clothing allowance ............................................................   38   U.S.C.   1162 ...............................................................   38   CFR   3.810.
                                                 Service and guide dog benefits ........................................           38   U.S.C.   1714(b) & (c) ..................................................       38   CFR   17.148.
                                                 Sensori-neural aids ...........................................................   38   U.S.C.   1707(b) ...........................................................    38   CFR   17.149.
                                                 Patient lifts and other rehabilitative devices .....................              38   U.S.C.   1717(b) ...........................................................    38   CFR   17.151.
                                                 Devices for deaf veterans .................................................       38   U.S.C.   1717(c) ...........................................................    38   CFR   17.152.
                                                 Equipment for blind veterans ............................................         38   U.S.C.   1714(b) ...........................................................    38   CFR   17.154.
                                                 Automobile adaptive equipment .......................................             38   U.S.C.   3901 et seq. ...................................................       38   CFR   17.155 et seq.
                                                 Home improvements and structural alterations ................                     38   U.S.C.   1717(a)(2) .......................................................     38   CFR   17.3100 et seq.



                                                 (Authority: 38 U.S.C. 501, 1162, 1701, 1707,                           Cognitive device means an item that                                 portable patient lifts, portable ramps,
                                                 1710, 1714, 1717, 3901)                                             compensates for a cognitive impairment                                 ventilators, home dialysis equipment,
                                                 § 17.3210       Definitions.
                                                                                                                     and that is used to maintain or improve                                and infusion, feeding, or wound therapy
                                                                                                                     a veteran’s functional capabilities,                                   pumps. This definition does not include
                                                    For the purposes of §§ 17.3200                                   including but not limited to                                           household furniture or furnishings,
                                                 through 17.3250:                                                    technological equipment such as tablets                                improvements or structural alterations,
                                                    Activities of daily living (ADLs) means
                                                                                                                     and smart phones, and associated                                       household appliances, or medical alert
                                                 specific personal care activities that are
                                                                                                                     technological equipment, applications                                  devices. VA will not furnish home
                                                 required for basic daily maintenance                                or software that can assist a veteran in                               medical equipment in such a manner as
                                                 and sustenance, to include eating,                                  maintaining daily scheduling of                                        to relieve any other person or entity of
                                                 toileting, bathing, grooming, dressing                              important tasks or navigating their                                    a contractual obligation to furnish these
                                                 and undressing, and mobility.                                       surroundings (e.g., global positioning
                                                    Adaptive household item means a                                                                                                         items or services to the veteran.
                                                                                                                     system, or GPS) .                                                         Home respiratory equipment means
                                                 durable household item that has been                                   Communication device means an item
                                                 adapted to compensate for, or that by                                                                                                      an item used to provide oxygen therapy
                                                                                                                     that compensates for a communication                                   or to support or enhance respiratory
                                                 design compensates for, loss of physical,                           deficiency and allows participation in
                                                 sensory, or cognitive function and is                                                                                                      function, including but not limited to
                                                                                                                     daily communication activities,                                        compressed oxygen, oxygen
                                                 necessary to complete one or more                                   including but not limited to picture or
                                                 ADLs in the home or other residential                                                                                                      concentrators, and continuous positive
                                                                                                                     symbol communication boards and an                                     airway pressure machines.
                                                 setting. Adaptive household items                                   electro larynx.
                                                 include but are not limited to adaptive                                                                                                       Household appliance means an item
                                                                                                                        Durable means capable of, and                                       used in the home for performance of
                                                 eating utensils, shower stools or chairs,                           intended for, repeat use.
                                                 hooks to assist in buttoning clothing, or                                                                                                  domestic chores or other domestic tasks,
                                                                                                                        Home exercise equipment means an
                                                 shoe horns. This definition does not                                                                                                       including but not limited to a
                                                                                                                     item used in a home or residential
                                                 include household furniture or                                                                                                             refrigerator, stove, washing machine,
                                                                                                                     setting that compensates for a loss of
                                                 furnishings, improvements or structural                             physical, sensory, or cognitive function                               and vacuum cleaner.
                                                 alterations, or household appliances,                               and that is necessary for the veteran to                                  Household furniture or furnishing
                                                 unless a household appliance is                                     actively and regularly participate in                                  means an item commonly used to make
                                                 necessary to complete an ADL in the                                 aerobic, fitness, strength, or flexibility                             a home habitable or otherwise used to
                                                 home or other residential setting. VA                               activities to achieve the veteran’s                                    ornament a home, including but not
                                                 will not furnish such items or services                             rehabilitation goals as documented in                                  limited to tables, chairs, desks, lamps,
                                                 in such a manner as to relieve any other                            the veteran’s medical record, when                                     cabinets, non-hospital beds, curtains,
                                                 person or entity of a contractual                                   there is no other means for the veteran                                and carpet(s).
                                                 obligation to furnish these items or                                to exercise to achieve the veteran’s                                      Implant means any biological or non-
                                                 services to the veteran.                                            rehabilitation goals. Such equipment                                   biological material that:
                                                    Adaptive recreation equipment means                              includes but is not limited to an upper                                   (1) Is manufactured or processed to be
                                                 an item that is designed to compensate                              body ergometer and a functional                                        placed into a surgically or naturally
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                                                 for, or that by design compensates for,                             electrical stimulation cycle.                                          formed cavity on the human body;
                                                 loss of physical, sensory, or cognitive                                Home medical equipment means an                                        (2) Is covered with tissue, has the
                                                 function and is necessary for the veteran                           item that is a movable and durable                                     potential to be covered with tissue, or is
                                                 to actively and regularly participate in                            medical device that is used in a home                                  permanently embedded in tissue;
                                                 a sport, recreation, or leisure activity to                         or residential setting to treat or support                                (3) Does not dissolve or dissipate
                                                 achieve the veteran’s rehabilitation                                treatment of specific medical                                          within the body; and
                                                 goals as documented in the veteran’s                                conditions. Such equipment includes                                       (4) Is not a living organ, embryonic
                                                 medical record.                                                     but is not limited to hospital beds,                                   tissue, blood, or blood product.


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                                                                        Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules                                                 48029

                                                    Improvements or structural                           § 17.3230    Authorized items and services.              (14) Specialized clothing made
                                                 alterations means a modification to a                      (a) VA will provide veterans eligible              necessary by the wearing of a prosthetic
                                                 home or to an existing feature or fixture               under § 17.3220 with the following                    device; and
                                                 of a home, including repairs to or                      items and services, if VA determines                     (15) Training with and fitting of
                                                 replacement of previously improved or                   that such items and services serve as a               prescribed items as considered
                                                 altered features or fixtures.                           direct and active component of the                    necessary.
                                                    Medical alert device means an item                   veteran’s medical treatment and                          (b) Unless an item provided under
                                                 designed to summon general safety                       rehabilitation and do not merely                      § 17.3230(a) is loaned to the veteran
                                                 assistance for a veteran, or provides a                 support the comfort or convenience of                 based on a clinical determination that a
                                                 veteran’s general medical information to                the veteran:                                          loan is more beneficial for the veteran,
                                                 others. This definition does not include                   (1) Adaptive household items.                      such items become the property of the
                                                 alarms or other safety indicators for                      (2) Adaptive recreation equipment,                 veteran once the veteran takes
                                                 home medical equipment.                                 when such equipment would achieve                     possession of those items. If the
                                                                                                         the veteran’s rehabilitation goals as                 determination is that the item will be
                                                    Mobility aid means an item that
                                                                                                         documented in the veteran’s medical                   loaned to a veteran, the veteran must
                                                 compensates for a mobility impairment
                                                                                                         record.                                               agree to the terms of the loan in order
                                                 and that is used to maintain or improve
                                                                                                            (3) Cognitive devices.                             to receive the item.
                                                 a veteran’s functional capabilities to be                                                                        Note to Section § 17.3230: Even
                                                 mobile. Mobility aids include but are                      (4) Communication devices.
                                                                                                            (5) Home exercise equipment, where                 though the items and services listed in
                                                 not limited to manual and motorized                                                                           this provision are included in the
                                                 wheelchairs, canes, walkers, and                        such equipment will only be provided
                                                                                                         for one location, the veteran’s primary               medical benefits package, this section
                                                 equipment to assist a veteran to reach                                                                        governs determinations of need for them
                                                 for or grasp items This definition does                 residence, unless it is clinically
                                                                                                         determined that the equipment should                  and not 38 CFR 17.38(b). The exclusions
                                                 not include a service or guide dog.                                                                           under 38 CFR 17.38(c) will apply to the
                                                    Orthotic device means an item fitted                 be provided at the veteran’s non-
                                                                                                         primary residence instead of the                      items and services provided under this
                                                 externally to the body that is used to                                                                        section. While VA will generally
                                                 support, align, prevent, or correct                     veteran’s primary residence. Prior to any
                                                                                                         installation of home exercise                         provide only one item under this
                                                 deformities or to improve the function                                                                        section, the provision of spare items
                                                 of movable parts of the body. Orthotic                  equipment, the owner of the residence
                                                                                                         must agree to the installation. Such                  may be authorized based on a clinical
                                                 devices include but are not limited to                                                                        determination of need using the criteria
                                                 leg braces, upper extremity splints and                 equipment will only be provided to
                                                                                                         achieve the veteran’s rehabilitation                  set forth in this section.
                                                 braces, and functional stimulation
                                                                                                         goals as documented in the veteran’s                  (Authority: 38 U.S.C. 501, 1701(6)(F), 1710,
                                                 devices.                                                                                                      1714(a))
                                                                                                         medical record.
                                                    Primary residence means the personal                    (6) Home medical equipment, and if
                                                 domicile or residential setting in which                                                                      § 17.3240    Furnishing authorized items and
                                                                                                         required, installation that does not                  services.
                                                 the veteran resides the majority of the                 amount to an improvement or structural
                                                 year.                                                                                                            (a) VA will determine whether VA or
                                                                                                         alteration to a veteran’s residence. Such             a VA-authorized vendor will furnish
                                                    Prosthetic device means an item that                 equipment will only be provided for one
                                                 replaces a missing or defective body                                                                          authorized items and services under
                                                                                                         location, the veteran’s primary                       § 17.3230 to veterans eligible for such
                                                 part. Prosthetic devices include but are                residence, unless it is clinically
                                                 not limited to artificial limbs and                                                                           items and services under § 17.3210.
                                                                                                         determined that the equipment should                     (b) Except for emergency care
                                                 artificial eyes.                                        be provided at the veteran’s non-                     reimbursable under 38 CFR 17.120 et
                                                    Replacement item means an item that                  primary residence instead of the                      seq. or 38 CFR 17.1000 et seq., prior
                                                 is similar or identical to an item                      veteran’s primary residence. Prior to any             authorization is required for VA to
                                                 provided under § 17.3230(a), and that                   installation of home medical equipment,               reimburse VA-authorized vendors for
                                                 takes the place of such an item.                        the owner of the residence must agree                 furnishing items or services under
                                                    VA-authorized vendor means a                         to the installation.                                  § 17.3230 to veterans. Prior
                                                 vendor that has been authorized by VA                      (7) Home respiratory equipment.                    authorization must be obtained from VA
                                                 to provide items and services under                        (8) Implants.                                      by contacting any VA medical facility.
                                                 § 17.3230.                                                 (9) Mobility aids.
                                                 (Authority: 38 U.S.C. 501, 1701, 1710)                     (10) Orthotic devices.                             § 17.3250.   Veteran responsibilities.
                                                                                                            (11) Prosthetic devices.                             (a) Veterans must use items provided
                                                 § 17.3220   Eligibility.                                   (12) Repairs to items provided under               under § 17.3230 in the manner for
                                                   A veteran is eligible to receive items                paragraph (a) of this section, even if the            which they are prescribed, and
                                                 and services described in § 17.3230 if:                 item was not initially prescribed by VA,              consistent with the manufacturer’s
                                                                                                         but VA determines the repair to be                    instructions and any training provided.
                                                   (a) The veteran is enrolled under
                                                                                                         necessary, unless VA determines to                    Failure to do so may result in the item
                                                 § 17.36 or exempt from enrollment
                                                                                                         replace the item for cost or clinical                 not being replaced under
                                                 under § 17.37; and
                                                                                                         reasons.                                              § 17.3230(a)(13).
                                                   (b) The veteran is otherwise receiving                   (13) Replacement items, if items                     (b) Except for emergency care under
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                                                 care or services under chapter 17 of title              provided under this section have been                 38 CFR 17.120 et seq. or 17.1000 et seq.,
                                                 38 U.S.C. If a VA provider or an                        damaged, destroyed, lost, or stolen, or if            veterans obtaining items and services
                                                 authorized non-Department provider                      replacement is clinically indicated,                  provided under § 17.3230 must obtain
                                                 prescribes an item or service for the                   subject to the following: Items that are              prior authorization from VA in order to
                                                 veteran, the veteran is considered to                   serviceable, and that still meet the                  obtain VA reimbursement for such items
                                                 otherwise be receiving care or services                 veteran’s need, will not be replaced for              and services obtained from a VA-
                                                 under chapter 17 of title 38 U.S.C.                     the sole purpose of obtaining a newer                 authorized vendor. VA will not be
                                                 (Authority: 38 U.S.C. 501, 1701(6)(F), 1710)            model of the same or similar item.                    responsible for the cost of items and


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                                                 48030                  Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Proposed Rules

                                                 services provided that are not                          The written comment is considered the                 report included a determination that
                                                 preauthorized by VA or that otherwise                   official comment and should include                   Ohio’s existing regional haze SIP
                                                 are not covered as emergency care under                 discussion of all points you wish to                  requires no substantive revision to
                                                 38 CFR 17.120 et. seq. or 17.1000 et seq.               make. EPA will generally not consider                 achieve the established regional haze
                                                 (Authority: 38 U.S.C. 501, 1701, 1710, 1725,            comments or comment contents located                  visibility improvement and emissions
                                                 1728)                                                   outside of the primary submission (i.e.,              reduction goals for 2018. EPA is
                                                 [FR Doc. 2017–22358 Filed 10–13–17; 8:45 am]            on the Web, cloud, or other file sharing              proposing to approve Ohio’s progress
                                                 BILLING CODE 8320–01–P                                  system). For additional submission                    report on the basis that it satisfies the
                                                                                                         methods, please contact the person                    requirements of 40 CFR 51.308.
                                                                                                         identified in the FOR FURTHER
                                                                                                                                                               II. EPA’s Analysis of Ohio’s Regional
                                                                                                         INFORMATION CONTACT section. For the
                                                 ENVIRONMENTAL PROTECTION                                                                                      Haze Progress Report and Adequacy
                                                 AGENCY                                                  full EPA public comment policy,
                                                                                                                                                               Determination
                                                                                                         information about CBI or multimedia
                                                 40 CFR Part 52                                          submissions, and general guidance on                     On March 11, 2016, OEPA submitted
                                                                                                         making effective comments, please visit               a revision to Ohio’s regional haze SIP to
                                                 [EPA–R05–OAR–2016–0185; FRL–9969–62–                    http://www2.epa.gov/dockets/                          address progress made in the first
                                                 Region 5]                                                                                                     planning period towards RPGs for Class
                                                                                                         commenting-epa-dockets.
                                                                                                         FOR FURTHER INFORMATION CONTACT:                      I areas that are affected by emissions
                                                 Air Plan Approval; Ohio; Regional                                                                             from Ohio’s sources. This progress
                                                 Haze Five-Year Progress Report State                    Michelle Becker, Life Scientist,
                                                                                                         Attainment Planning and Maintenance                   report also included a determination of
                                                 Implementation Plan                                                                                           the adequacy of the state’s existing
                                                                                                         Section, Air Programs Branch (AR–18J),
                                                 AGENCY:  Environmental Protection                       Environmental Protection Agency,                      regional haze SIP.
                                                 Agency (EPA).                                           Region 5, 77 West Jackson Boulevard,                     Ohio has no Class I areas within its
                                                 ACTION: Proposed rule.                                  Chicago, Illinois 60604, (312) 886–3901,              borders. Emissions from sources in Ohio
                                                                                                         Becker.Michelle@epa.gov.                              contribute to the visibility impairment
                                                 SUMMARY:   The Environmental Protection                                                                       in the following Class I areas: Caney
                                                                                                         SUPPLEMENTARY INFORMATION:
                                                 Agency (EPA) is proposing approval of                                                                         Creek Wilderness Area (Arkansas),
                                                                                                         Throughout this document whenever
                                                 a revision to the Ohio State                                                                                  Upper Buffalo Wilderness Area
                                                                                                         ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
                                                 Implementation Plan (SIP) submitted by                                                                        (Arkansas), Great Gulf Wilderness Area
                                                                                                         EPA. This supplementary information
                                                 the State of Ohio (Ohio) through the                                                                          (New Hampshire), Presidential Range-
                                                                                                         section is arranged as follows:
                                                 Ohio Environmental Protection Agency                                                                          Dry River Wilderness Area (New
                                                                                                         I. Background                                         Hampshire), Brigantine Wilderness Area
                                                 (OEPA). Ohio’s SIP revision addresses
                                                                                                         II. EPA’s Analysis of Ohio’s Regional Haze            (New Jersey), Great Smoky Mountains
                                                 the requirements of the Clean Air Act                        Progress Report and Adequacy
                                                 (CAA) and EPA’s rules that require                           Determination
                                                                                                                                                               National Park (North Carolina,
                                                 states to submit periodic reports                       III. What action is EPA taking?                       Tennessee), Mammoth Cave National
                                                 describing progress towards reasonable                  IV. Statutory and Executive Order Reviews             Park (Kentucky), Acadia National Park
                                                 progress goals (RPGs) established for                                                                         (Maine), Moosehorn Wilderness Area
                                                                                                         I. Background                                         (Maine), Seney Wilderness Area
                                                 regional haze, and a determination of
                                                 the adequacy of the state’s existing                       States are required to submit a                    (Michigan), Hercules-Glades Wilderness
                                                 implementation plan addressing                          progress report that evaluates progress               Area (Missouri), Mingo Wilderness Area
                                                 regional haze (regional haze SIP). EPA is               towards the RPGs for each Class I                     (Missouri), Lye Brook Wilderness
                                                 proposing approval of the Ohio SIP                      Federal area 1 (Class I area) within the              (Vermont), James River Face Wilderness
                                                 revision on the basis that it addresses                 state and in each Class I area outside the            (Virginia), Shenandoah National Park
                                                 the progress report and adequacy                        state which may be affected by                        (Virginia), and Dolly Sods/Otter Creek
                                                 determination requirements for the first                emissions from within the state. See 40               Wilderness (West Virginia).
                                                 implementation period for regional                      CFR 51.308(g). States are also required                  In developing a long term strategy
                                                 haze.                                                   to submit, at the same time as the                    (LTS) for ensuring reasonable progress
                                                                                                         progress report, a determination of the               towards improving visibility, Ohio
                                                 DATES:  Comments must be received on                    adequacy of the state’s existing regional             participated with other states and tribes
                                                 or before November 15, 2017.                            haze SIP. See 40 CFR 51.308(h). The                   through the Midwest Regional Planning
                                                 ADDRESSES: Submit your comments,                        first progress report must be submitted               Organization (MRPO). Additionally,
                                                 identified by Docket ID No. EPA–R05–                    in the form of a SIP revision and is due              Ohio consulted with the Mid-Atlantic/
                                                 OAR–2016–0185 at http://                                five years after the submittal of the                 Northeast Visibility Union (MANE–VU),
                                                 www.regulations.gov or via email to                     initial regional haze SIP. On March 11,               and Federal Land Managers (FLMs) as a
                                                 Aburano.Douglas@epa.gov. For                            2011, OEPA submitted its first regional               part of developing its initial SIP. The
                                                 comments submitted at Regulations.gov,                  haze SIP in accordance with the                       original Ohio regional haze SIP
                                                 follow the online instructions for                      requirements of 40 CFR 51.308.                        determined that ‘‘on-the-books’’ controls
                                                 submitting comments. Once submitted,                       On March 11, 2016, Ohio submitted                  would constitute the measures
                                                 comments cannot be edited or removed                    as a SIP revision a report on the progress            necessary to address Ohio’s contribution
                                                 from Regulations.gov. For either manner                 made in the first implementation period               to visibility impairment in the Class I
                                                 of submission, EPA may publish any                      towards the RPGs for Class I areas that               areas to which Ohio contributes. This
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 comment received to its public docket.                  are affected by emissions from the state              was supported by modeling assessments
                                                 Do not submit electronically any                        of Ohio (progress report). This progress              from the MRPO and in consultation
                                                 information you consider to be                                                                                with other states and Regional Planning
                                                 Confidential Business Information (CBI)                   1 Areas designated as mandatory Class I Federal
                                                                                                                                                               Organizations (RPOs).
                                                 or other information whose disclosure is                areas consist of national parks exceeding 6000
                                                 restricted by statute. Multimedia                       acres, wilderness areas and national memorial parks   A. Regional Haze Progress Report SIPs
                                                                                                         exceeding 5000 acres, and all international parks
                                                 submissions (audio, video, etc.) must be                that were in existence on August 7, 1977 (42 U.S.C.     The following section includes EPA’s
                                                 accompanied by a written comment.                       7472(a)). Listed at 40 CFR part 81 subpart D.         analysis of Ohio’s progress report


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Document Created: 2017-10-14 01:43:03
Document Modified: 2017-10-14 01:43:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by VA on or before December 15, 2017.
ContactPenny Nechanicky, National Program Director for Prosthetic and Sensory Aids Service (10P4RK), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420; (202) 461-0337. (This is not a toll-free number.) [email protected]
FR Citation82 FR 48018 
RIN Number2900-AP46

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