[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)]
[Notices]
[Pages 67998-67999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23819]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Notice of Two-Year Extension of TRICARE Co-Pay Waiver at Captain 
James A. Lovell Federal Health Care Center Demonstration Project

AGENCY: Office of the Secretary, Department of Defense.

ACTION: Notice of two-year extension of TRICARE Co-Pay Waiver at 
Captain James A. Lovell Federal Health Care Center Demonstration 
Project.

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SUMMARY: This notice is to advise interested parties of a two-year 
extension of a demonstration project entitled ``TRICARE Co-Pay Waiver 
at

[[Page 67999]]

Captain James A. Lovell Federal Health Care Center (FHCC) Demonstration 
Project.'' The original waiver notice was published on September 27, 
2010 (75 FR 59237-59238).

DATES: Effective Date: This two-year extension will be effective from 
October 1, 2016 to September 30, 2018.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Bouchard, Director, DoD/VA 
Program Coordination Office, Defense Health Agency, Telephone 703-275-
6300.

SUPPLEMENTARY INFORMATION:

A. Background

    For additional information on the TRICARE co-pay waiver 
demonstration at the Captain James A. Lovell Federal Health Care Center 
(FHCC) demonstration project, please see 75 FR 59237-59238. Under this 
demonstration, there would be no deductibles, cost shares, or co-pays 
for eligible beneficiaries seeking care at the FHCC, under the 
authority of 10 U.S.C. 1092(a)(1)(B). The original demonstration notice 
explained that the co-pay waiver demonstration would be used to 
determine if increased utilization at FHCC actually occurred as a 
result of eliminated co-payments, which would in turn influence 
decisions regarding financial integration at future Department of 
Defense (DoD)/Department of Veterans Affairs (VA) models of this 
nature. A report on the demonstration project concluded that 
utilization increased at FHCC during the time of the co-pay waiver 
demonstration project. Admission and encounter utilization data from 
2010 to 2014 shows that DoD utilization of FHCC increased by 10,295. 
This demonstration is integral to the success of the integration effort 
at FHCC; without it, FHCC would see a marked reduction in DoD 
beneficiaries.

B. Description of Extension of Demonstration Project

    Under this demonstration, DoD has waived TRICARE co-payments for 
DoD beneficiaries seen at the FHCC. The National Defense Authorization 
Act (NDAA) for fiscal year (FY) 2010 Section 1701 requires a report to 
Congress evaluating the exercise of authorities in that title at FHCC. 
That report was delivered on July 26, 2016, and recommends continuation 
of the FHCC demonstration project. If Congress agrees, it is likely 
Congress will clarify that access to care under section 1705 should 
apply to the entire joint facility and not be limited to the DoD assets 
within the facility. If so, that will negate the requirement for 
further extensions to the TRICARE co-pay waiver demonstration project 
beyond FY17.
    In order to allow seamless continuation of services to DoD 
beneficiaries at FHCC, the TRICARE co-pay waiver is extended through 
September 30, 2018. This waiver applies to all inpatient, outpatient, 
and ancillary services, and all outpatient prescription drugs provided 
at FHCC. This waiver is consistent with current policies and procedures 
followed at all military treatment facilities. According to an 
Independent Government Cost Estimate (IGCE), the estimated two-year 
impact for the co-pay waiver in FY2017 and FY2018 is $246,499.

C. Evaluation

    An independent evaluation was performed and determined that without 
this waiver, DoD beneficiary utilization of the FHCC in North Chicago 
would have significantly decreased. Since DoD and VA have recommended 
to Congress to continue the demonstration project, a permanent solution 
regarding DoD beneficiary co-pays is expected to be in place for FY18 
and will ensure that DoD beneficiaries are not levied cost shares, as 
FHCC represents the former Naval Hospital Great Lakes.

    Dated: September 28, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-23819 Filed 9-30-16; 8:45 am]
 BILLING CODE 5001-06-P