[Federal Register Volume 77, Number 62 (Friday, March 30, 2012)]
[Notices]
[Pages 19425-19426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7621]


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DEPARTMENT OF VETERANS AFFAIRS


Prescription Drugs Not Administered During Treatment; Update to 
Administrative Cost for Calendar Year 2012

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: This Department of Veterans Affairs (VA) notice informs the 
public of the updated ``National Average Administrative Costs'' for 
purposes of calculating VA's charges for prescription drugs that were 
not administered during treatment but were provided or furnished by VA 
to a veteran for: A nonservice-connected disability for which the 
veteran is entitled to care (or the payment of expenses of care) under 
a health plan contract; a nonservice-connected disability incurred 
incident to the veteran's employment and covered under a worker's 
compensation law or plan that provides reimbursement or indemnification 
for such care and services; or a nonservice-connected disability 
incurred as a result of a motor vehicle accident in a State that 
requires automobile accident reparations insurance. This updated 
administrative cost charge was effective on January 1, 2012, for 
Calendar Year 2012.

FOR FURTHER INFORMATION CONTACT: Romona Greene, Chief Business Office 
(10NB1A), Veterans Health Administration, Department of Veterans 
Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 461-1595. 
This is not a toll free number.

SUPPLEMENTARY INFORMATION: Section 17.101 of title 38, Code of Federal 
Regulations, sets forth VA's medical regulations concerning the 
collection or recovery by VA for medical care or services provided or 
furnished to a veteran for a nonservice-connected disability. As 
provided in 38 CFR 17.101(m), when VA provides or furnishes 
prescription drugs not administered during treatment for: (1) A 
nonservice-connected disability for which the veteran is entitled to 
care (or the payment of expenses of care) under a health plan contract; 
(2) a nonservice-connected disability incurred incident to the 
veteran's employment and covered under a worker's compensation law or 
plan that provides reimbursement or indemnification for such care and 
services; or (3) a nonservice-connected disability incurred as a result 
of a motor vehicle accident in a State that requires automobile 
accident reparations insurance, ``charges billed separately for such 
prescription drugs will consist of the amount that equals the total of 
the actual cost to VA for the drugs and the national average of VA 
administrative costs associated with dispensing the drugs for each 
prescription.''
    Section 17.101(m) includes the methodology for calculating the 
national average administrative cost for prescription drug charges not 
administered during treatment. The administrative cost is determined 
annually using VA's managerial cost accounting system. Under this 
accounting system, the national average administrative cost is 
determined by adding the total VA national drug general overhead costs 
(such as costs of buildings and maintenance, utilities, billing, and 
collections) to the total VA national drug dispensing costs (such as 
costs of the labor of the pharmacy department, packaging, and mailing) 
with the sum divided by the actual number of VA prescriptions filled 
nationally. The labor cost also includes cost for the professional 
activity of reviewing and dispensing a prescription.
    Based on this accounting system, VA will determine the amount of 
the national average administrative cost annually for the prior fiscal 
year (October through September) and then apply the charge at the start 
of the next calendar year. The national average administrative cost for 
calendar year 2012 is $12.39 and was effective on January 1, 2012.
    This notice will be posted at http://www1.va.gov/CBO/apps/rates/index.asp under the heading ``Federal Registers, Rules, and Notices'' 
and identified as ``Administrative Charge Federal Register Notice, CY 
2012.'' Following this Federal Register notice, all subsequent Federal 
Register notices providing updates on the administrative charge will be 
published in conjunction with the Federal Register notices

[[Page 19426]]

providing updates on the charges for outpatient facilities and 
professional services.

    Approved: March 23, 2012.
John R. Gingrich,
Chief of Staff, Department of Veterans Affairs.
[FR Doc. 2012-7621 Filed 3-29-12; 8:45 am]
BILLING CODE 8320-01-P