[Federal Register Volume 74, Number 242 (Friday, December 18, 2009)]
[Notices]
[Pages 67179-67180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30090]


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

DEPARTMENT OF DEFENSE

Office of the Secretary


Extension of Provider Reimbursement Demonstration Project for the 
State of Alaska

AGENCY: Department of Defense (DoD).

ACTION: Notice of demonstration extension.

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

SUMMARY: This notice provides an extension of the demonstration project 
in the State of Alaska for individual provider payment rates. Under the 
demonstration, payment rates for physicians and other non-institutional 
individual professional providers in the State of Alaska have been set 
at a rate higher than the Medicare rate. Further, the enhanced portion 
of the State of Alaska demonstration that provides for reimbursement of 
101 percent of reasonable costs for inpatient and outpatient facilities 
of Critical Access Hospitals (CAHs) is terminated because it is no 
longer necessary based on publication of the TRICARE Reimbursement of 
CAHs final rule (74 FR 44752) on August 31, 2009.

DATES: The portion of the demonstration regarding payment rates for 
physicians and other non-institutional providers is extended through 
December 31, 2010. The CAH portion of the demonstration shall end on 
November 30, 2009.

ADDRESSES: TRICARE Management Activity (TMA), Medical Benefits and 
Reimbursement Branch, 16401 East Centretech Parkway, Aurora, CO 80011-
9066.

FOR FURTHER INFORMATION CONTACT: Glenn J. Corn, TRICARE Management 
Activity, Medical Benefits and Reimbursement Branch, telephone (303) 
676-3566.

SUPPLEMENTARY INFORMATION: On November 20, 2006, DoD published a Notice 
of a TRICARE demonstration project for the State of Alaska, with an 
effective date of January 1, 2007 (71 FR 67113), to set payment rates 
for physicians and other non-institutional individual professional 
providers in the State of Alaska at a rate higher than the Medicare 
rate. The demonstration was effective January 1, 2007, for a period of 
three years, ending on December 31, 2009. Since that time, DoD has 
determined that increasing provider payment rates (factor rate 
increase) in Alaska, across all services, has shown mixed results on 
provider participation, beneficiary access to care, cost of health care 
services, military readiness, and morale and welfare. The Agency feels 
an extension of the demonstration is needed to provide more time to 
fully evaluate and implement a comprehensive framework for managing 
TRICARE in the State of Alaska. In the meantime, the Agency is looking 
toward developing a more comprehensive, updated management and 
reimbursement strategy that will provide a foundation for developing 
and implementing a comprehensive long-term plan through collaboration 
with Federal Service Partners for mutually accepted Federal rates. The 
demonstration continues to be conducted under statutory authority 
provided in 10 United States Code 1092.
    Subsequent to the publication of the initial notice creating the 
increased rates

[[Page 67180]]

for individual providers, DoD published a second notice on July 20, 
2007, expanding the TRICARE demonstration project for the State of 
Alaska to reimburse CAHs 101 percent of reasonable costs for inpatient 
and outpatient care with an effective date of July 1, 2007 (72 FR 
41501), using a method similar to Medicare's payment for these 
hospitals. The CAH portion of the State of Alaska demonstration is no 
longer necessary because the DoD is implementing such a reimbursement 
system on a nationwide basis. Consequently, the CAH portion of the 
demonstration is terminated. The TRICARE CAH final rule was published 
on August 31, 2009 (74 FR 44752).

    Dated: December 15, 2009.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. E9-30090 Filed 12-17-09; 8:45 am]
BILLING CODE 5001-06-P