[Federal Register Volume 78, Number 242 (Tuesday, December 17, 2013)]
[Notices]
[Pages 76413-76414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-29997]
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DEPARTMENT OF VETERANS AFFAIRS
Reasonable Charges for Medical Care or Services; V3.14, 2014
Calendar Year Update and National Average Administrative Prescription
Drug Charge Update
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 data for calculating the ``Reasonable Charges''
collected or recovered by VA for medical care or services and the
updated ``National Average Administrative Costs'' for purposes of
calculating VA's charges for prescription drugs that were not
administered during treatment but provided or furnished by VA to a
veteran for: (1) A nonservice-connected disability for which the
veteran is entitled to care or the payment of expenses for 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. The charge tables
and supplemental tables that are applicable to this notice can be
viewed on the Veterans Health Administration Chief Business Office's
Internet Web site http://www1.va.gov/CBO/apps/rates/index.asp. These
changes are effective January 1, 2014.
FOR FURTHER INFORMATION CONTACT: Romona Greene, Chief Business Office
10NB, Veterans Health Administration, Department of Veterans Affairs,
810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2521. This is
not a toll free number.
SUPPLEMENTARY INFORMATION: VA has published regulations at 38 CFR
17.101 addressing ``Reasonable Charges'' for medical care or services
provided or furnished by VA to a veteran for: (1) A nonservice-
connected disability for which the veteran is entitled to care (or the
payment of expenses for 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.
The regulation at 38 CFR 17.101 includes methodologies for
establishing billed amounts for the following types of charges: acute
inpatient facility charges; skilled nursing facility and sub-acute
inpatient facility charges; partial hospitalization facility charges;
outpatient facility charges; physician and other professional charges,
including professional charges for anesthesia services and dental
services; pathology and laboratory charges; observation care facility
charges; ambulance and other emergency transportation charges; and
charges for durable medical equipment, drugs, injectables, and other
medical services, items, and supplies identified by Healthcare Common
Procedure Coding System (HCPCS) Level II codes. In cases where VA has
not established charges for medical care or services provided or
furnished at VA expense (by either VA or non-VA providers) under other
provisions or regulations, the method for determining VA's charges is
set forth at 38 CFR 17.101(a)(8).
The regulation provides that the actual charge amounts at
individual VA facilities based on these methodologies and the data
sources used for calculating those actual charge amounts will either be
published as a notice in the Federal Register or will be posted on the
Internet site of the Veterans Health Administration Chief Business
Office at http://www1.va.gov/CBO/apps/rates/index.asp. Certain charges
are hereby updated as described below, effective January 1, 2014.
Based on the methodologies set forth in 38 CFR 17.101, this
document provides an update to charges for 2014 HCPCS Level II and
Current Procedural Technology (CPT) codes. Charges are also being
updated based on more
[[Page 76414]]
recent versions of data sources for the following charge types: Partial
hospitalization facility charges; outpatient facility charges;
physician and other professional charges, including professional
charges for anesthesia services and dental services; pathology and
laboratory charges; observation care facility charges; ambulance and
other emergency transportation charges; and charges for durable medical
equipment, drugs, injectables, and other medical services, items, and
supplies identified by HCPCS Level II codes. These updated charges are
effective January 1, 2014. As of the date of this notice, the actual
charge amounts at individual VA facilities based on the methodologies
in the regulation will be posted at http://www1.va.gov/CBO/apps/rates/index.asp, under the heading ``Reasonable Charges Data Tables'' and
identified as ``V3.14 Data Tables (Outpatient and Professional).''
The list of data sources used for calculating the actual charge
amounts will be posted at http://www1.va.gov/CBO/apps/rate/index.asp
under the heading ``Reasonable Charges Data Sources'' and identified as
``Reasonable Charges V3.14 Data Sources (Outpatient and Professional)
(PDF).''
Acute inpatient facility charges and skilled nursing facility/sub-
acute inpatient facility charges remain the same as set forth in the
notice published in the Federal Register on September 26, 2013 (78 FR
59427). The effective date of those charges was October 1, 2013. The
data tables containing those actual charges are posted at http://www1.va.gov/CBO/apps/rates/index.asp, under the heading ``Reasonable
Charges Data Tables'' and identified as ``V3.13 Data Tables
(Inpatient).'' The data sources used to calculate these charges are
posted at http://www1.va.gov/CBO/apps/rate/index.asp under the heading
``Reasonable Charges Data Sources'' and identified as ``Reasonable
Charges V3.13 Data Sources (Inpatient) (PDF).''
We have also updated the list of VA medical facility locations. The
list of VA medical facility locations, including the first three digits
of their zip codes as well as provider based/non-provider based
designations, will be posted on the Internet site of the Veterans
Health Administration Chief Business Office, currently at http://www1.va.gov/CBO/apps/rate/index.asp under the heading ``VA Medical
Facility Locations,'' and identified as ``VA Medical Facility Locations
V3.14 (Jan14).''
As provided in 38 CFR 17.101(m), when VA provides or furnishes
prescription drugs not administered during treatment, ``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 the 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 drug cost
for the calendar year (CY) 2014 is $13.07. This change is effective on
January 1, 2014, and will be posted at http://www1.va.gov/CBO/payerinfo.asp and identified as ``CY 2014 Average Administrative Cost
for Prescriptions.''
Consistent with the regulations, the national average
administrative cost, the updated data tables, and supplementary tables
containing the changes described in this notice will be posted online,
as indicated in this notice. 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, ``V3.14 Federal
Register Notice 01/01/14 (Outpatient and Professional), and National
Administrative Cost (PDF).'' The national average administrative cost,
updated data tables, and the supplementary tables containing the
changes described will be effective until changed by a subsequent
Federal Register notice.
Approved: December 9, 2013.
Jose D. Riojas,
Chief of Staff, Department of Veterans Affairs.
[FR Doc. 2013-29997 Filed 12-16-13; 8:45 am]
BILLING CODE 8320-01-P