[Federal Register Volume 82, Number 86 (Friday, May 5, 2017)]
[Rules and Regulations]
[Pages 21118-21119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09081]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AP87


Extension of Pharmacy Copayments for Medications

AGENCY: Department of Veterans Affairs.

ACTION: Resolution of interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) notifies the public 
that an interim final rule freezing medication copayments for veterans 
in priority groups 2 through 8, published on December 7, 2016, was 
superseded by a final rule amending its regulations concerning 
copayments that published on December 12, 2016. The interim final rule 
received no public comments.

DATES: Effective Date: This rule is effective on May 5, 2017.

FOR FURTHER INFORMATION CONTACT: Bridget Souza, Office of Community 
Care (10D), Veterans Health Administration, Department of Veterans 
Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 382-2537. 
(This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On December 7, 2016, VA published an interim 
final rule, RIN 2900-AP87--Copayments for Medications in 2017 (AP87), 
at 81 FR 88120, extending the medication copayment freeze through 
February 26, 2017. We did so in anticipation of publishing a separate 
final rule, RIN 2900-AP35--Copayments for Medications Beginning January 
1, 2017 (AP35), which published December 12, 2016, at 81 FR 89390, 
implementing a tiered medication copayment regime with an effective 
date of February 27, 2017. Failure to extend the medication copayment 
freeze with the interim final rule would have subjected affected 
veterans to a short term, but significant, increase in the amount of 
medication copayments based on the prescription drug component of the 
Medical Consumer Price Index (CPI-P) per 38 CFR 17.110(b)(1)(iii). In 
addition, affected veterans in priority groups 2 through 6 would have 
been subject to an increase in the annual cap on the total amount of 
copayments.
    The interim final rule, AP87, provided a 60-day period during which 
the public could submit comments. The comment period closed on February 
6, 2017, and we received no comments.
    As previously mentioned, on December 12, 2016, VA published a final 
rule, AP35, at 81 FR 89390. This final rule established a tiered

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medication copayment system, effective February 27, 2017. Under AP35, 
the new regulatory formula, focuses on the type of medication being 
prescribed and removes the automatic escalator provision, meaning that 
changes in copayments would only occur through subsequent rulemakings. 
Veterans exempt by law from copayments under 38 U.S.C. 1722A(a)(3) 
continue to be exempt. Three classes of medications were established 
for copayment purposes: Tier 1 medications, Tier 2 medications, and 
Tier 3 medications. Tiers 1 and 2 includes multi-source medications, a 
term that is defined in Sec.  [thinsp]17.110(b)(1)(iv). Tier 3 includes 
medications that retain patent protection and exclusivity and are not 
multi-source medications. Copayment amounts vary depending upon the 
Tier in which the medication is classified. A 30-day or less supply of 
Tier 1 medications has a copayment of $5. For Tier 2 medications, the 
copayment is $8, and for Tier 3 medications, the copayment is $11. The 
rule also changed the annual cap for medication copayments, lowering 
the cap to $700 for all veterans who are required to pay medication 
copayments.

Paperwork Reduction Act

    This resolution contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on April 28, 2017, for publication.

    Dated: May 2, 2017.
Janet Coleman,
Chief, Office of Regulation Policy & Management, Office of the 
Secretary, Department of Veterans Affairs.
[FR Doc. 2017-09081 Filed 5-4-17; 8:45 am]
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