[Federal Register Volume 70, Number 231 (Friday, December 2, 2005)]
[Notices]
[Page 72326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-6737]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS


Copayment for Medication

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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

SUMMARY: The Department of Veterans Affairs (VA) is hereby giving 
notice that the medication copayment rate will be increased from $7.00 
to $8.00. The total amount of copayments in a calendar year for a 
veteran enrolled in one of the priority groups 2 through 6 shall not 
exceed the new cap of $960.00. These increases are based on 
calculations based on the Prescription Drug component of the Medical 
Consumer Price Index and as provided in Title 38, Code of Federal 
Regulations, part 17, Sec.  17.110.

DATES: These rates are effective January 1, 2006.

FOR FURTHER INFORMATION CONTACT: Tony Guagliardo, Director, Business 
Policy (163), Veterans Health Administration, Department of Veterans 
Affairs (VA), 810 Vermont Avenue, NW., Washington, DC 20420, (202) 254-
0406. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: VA is required by law to charge certain 
veterans a copayment for each 30-day or less supply of medication 
provided on an outpatient basis (other than medication administered 
during treatment) for treatment of a non-service connected condition. 
Public Law 106-117, The Veterans' Millennium Health Care and Benefits 
Act, gives the Secretary of Veterans Affairs authority to increase the 
medication copayment amount and to establish a calendar year cap on the 
amount of medication copayments charged to veterans enrolled in 
priority groups 2 through 6. When veterans reach the calendar year cap, 
they will continue to receive medications without additional copayments 
for that calendar year.

Formula for Calculating the Medication Copayment Amount

    Each calendar year beginning after December 31, 2002, the 
Prescription Drug component of the Medical Consumer Price Index of the 
previous September 30 is divided by the index as of September 30, 2001. 
The ratio is then multiplied by the original copayment amount of $7.00. 
The copayment amount of the new calendar year is then rounded down to 
the whole dollar amount. Until September 30, 2005, there have been no 
changes in this ratio which resulted in an increase of VA's medication 
copayment rates.

Computation of Calendar Year 2006 Medication Copayment Amount

Prescription Drug Medical Consumer Price Index as of September 30, 2005 
= 351.8
Prescription Drug Medical Consumer Price Index as of September 30, 2001 
= 304.8
Index = 351.8 divided by 304.8 = 1.1542
(INDEX) x $7 = $8.08
Copayment amount = $8.00

    Dated: November 23, 2005.
R. James Nicholson,
Secretary of Veterans Affairs.
 [FR Doc. E5-6737 Filed 12-1-05; 8:45 am]
BILLING CODE 8320-01-P