[Federal Register Volume 67, Number 113 (Wednesday, June 12, 2002)]
[Notices]
[Pages 40278-40279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14708]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Worldwide TRICARE Transitional Health Care Demonstration Project

AGENCY: Office of the Secretary, DoD.

ACTION: Notice of a worldwide TRICARE transitional health care 
demonstration project.

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SUMMARY: This notice is to advise interested parties of a demonstration 
project in which the Military Health System (MHS) will test whether 
allowing 60 or 120 days of health care eligibility for dependents of 
service members who are involuntarily separated from the armed forces 
is necessary, cost-effective and beneficial to the Department of 
Defense (DoD). At the end of this Project, DoD will conduct an analysis 
of the benefits and costs of the program in determining whether 
transitional health care benefits should continue to be an entitlement 
for these dependents. Information and experience gained as part of this 
demonstration project will provide the foundation for longer-term 
solutions in health care policy development and promulgation. This 
demonstration project is being conducted under the authority of 10 
U.S.C. 1092.

EFFECTIVE DATE: This demonstration project applies to all covered 
health care services provided to dependents of service members who are 
involuntarily separated from the armed forces on or after January 1, 
2002. The DoD will implement the Demonstration upon the announcement of 
this notice and it will be in effect for 2 years or until rescinded by 
another authority. In view of the demobilization of over 73,000 
reservists and national guardsmen called to active duty in support of 
deployment to conduct operational missions under Operation Enduring 
Freedom and Noble Eagle, DoD is waiving the regulation (32 CFR 
199.1(o)) requiring at least 30 days notice of a demonstration project 
prior to its effective date. Waiver of the notice period is deemed 
necessary to avoid delay in implementing program changes to address 
obstacles faced by dependents of involuntarily separated service 
members, reservists and national guardsmen from the onset of the call 
to active duty.

FOR FURTHER INFORMATION CONTACT: LTC Pradeep G. Gidwani, Office of the 
Assistant Secretary of Defense for Health Affairs, TRICARE Management 
Activity, (703) 681-3636.

SUPPLEMENTARY INFORMATION:   

A. Background

    On December 28, 2001, NDAA 02, Pub. L. 107-107 Subsection 736 (d) 
eliminated transitional health care eligibility for dependents of 
service members who are involuntarily separated under honorable 
conditions or who are separated after being called to or retained on 
active duty in support of a contingency operation. Section 1145 of 
Title 10 entitles active duty members departing under such conditions 
to a period of transitional health care coverage but does not extend 
coverage for their dependents. Previously, dependents of separated 
service members supporting contingency operations were entitled up to 
30 days of transitional care and dependents of involuntarily separated 
service members were entitled to 60 days of transitional coverage if 
the member had been on active duty less than six years or 120 days of 
transitional coverage if the member had been on active duty for six 
years or more.
    The DoD expects most of these separated service members and their 
dependents to acquire other health insurance (OHI). Dependents and 
departing service members could face undue financial hardships during 
this transition. Accordingly, the Secretary of Defense is authorizing a 
demonstration project (under Title 10 U.S.C. 1092) for the Department 
to cover the cost of transitional health care for the dependents of 
these separated service members effective January 1, 2002.
    The Demonstration applies to the dependents of the following 
members of the armed forces:
    A. A member who is involuntarily separated from active duty.
    B. A member of a reserve component who is separated from active 
duty to which called or ordered in support of a contingency operation 
if the active duty is for a period of more than 30 days.
    C. a member who is separated from active duty for which the member 
is involuntarily retained under 10 U.S.C. 12305, in support of a 
contingency operation.
    D. A member who is separated from active duty pursuant to a 
voluntary agreement of the member to remain on active duty for a period 
of less than one year in support of a contingency mission.
    The health care available under this Demonstration shall be as 
follows:

[[Page 40279]]

    A. An eligible member's dependents who would otherwise be eligible 
to receive health care in a military treatment facility under 10 U.S.C. 
1072(a)(2) if the eligible member was still on active duty will remain 
eligible for such health care in the same manner from a military 
treatment facility during the applicable period of eligibility listed 
below.
    B. An eligible member's dependents who would otherwise be eligible 
to receive health care from civilian facilities or providers under 10 
U.S.C. 1079(a) if the eligible member was still on active duty will 
remain eligible for such health care from civilian facilities or 
providers under the same rates and conditions during the applicable 
period of eligibility listed below.
    The period of eligibility for dependents under this Demonstration, 
beginning on the date on which the member is separated, is as follows:
    A. For members separated with less than six years of active 
service, 60 days.
    B. For members separated with six or more years of active service, 
120 days.
    The demonstration project is designed to test an approach for 
addressing the potential inequity where departing service member health 
care eligibility is intact but not comparable eligibility for their 
dependents. The Department's effective response to potential disruption 
or loss of access to medical care for dependents requires careful 
review of operational and administrative mechanisms that can ease this 
hardship during the transition from active duty to civilian status. The 
demonstration of covering dependents of separating service members is 
proposed for the purpose of:
    A. Assessing the facility for the MHS to provide extended health 
care coverage for dependents.
    B. Determining whether the 60 or 120 days of health care 
eligibility for dependents is cost-effective, necessary, and beneficial 
to DoD.
    C. Minimizing the uncertainty associated with the transition of 
separating members to civilian status.
    D. Identifying any extraordinary out-of-pocket expenses for 
dependents.
    E. Identifying potential problems associated with the transition 
process in regards to impaired access, beneficiary satisfaction, and 
adequacy of providers.
    The military departments and Coast Guard will identify 
beneficiaries eligible for this demonstration program. Eligibility 
information will be transmitted by the military departments and the 
Coast Guard to the Defense Manpower Data Center that will establish and 
maintain beneficiary eligibility data as the Defense Enrollment and 
Eligibility Record System (DEERS). TRICARE Management Activity (TMA) 
will notify the managed care support care contractors of this change. 
DoD's objective is to achieve a level of participation sufficient to 
test new strategies and will conduct this demonstration worldwide. 
Demonstration participants will include dependents of separated service 
members who remain eligible for TRICARE under DoD's transitional health 
care program. Demonstration participants are eligible for enrollment in 
TRICARE Prime.
    This support is an important element in the welfare of service 
members and their dependents called to a significant and immediate 
change in life circumstances. It will prevent undue financial hardships 
for departing service members and their families during transition from 
military to civilian life. Information and experience gained as part of 
this demonstration will provide the foundation for longer-term 
solutions in the event of future reserve activation or an increase in 
military forces.

B. Description of Demonstration Project

    (1) Location of Project: The number of service members routinely 
separated from active duty coupled with the demobilization of over 
73,000 reservists and national guardsmen in support of Enduring Freedom 
and Noble Eagle will result in the demand for transitional health care 
services in many geographical areas in CONUS and overseas. Therefore, 
to achieve a level of participation sufficient to test new strategies, 
this demonstration will occur nationwide.
    (2) Project Components: The Demonstration will cover all health 
care services rendered to eligible beneficiaries beginning January 1, 
2002.

    Dated: June 6, 2002.
Patricia L. Toppings,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 02-14708 Filed 6-11-02; 8:45 am]
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