[Federal Register Volume 83, Number 197 (Thursday, October 11, 2018)]
[Notices]
[Pages 51450-51451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22184]


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

DATES: This two-year extension is effective from October 1, 2018 to 
September 30, 2020.

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 
significantly. 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. Therefore, DoD submitted a 
legislative proposal to amend section 1705 of NDAA 2010 to clarify 
language that access to care under section 1705 should apply to the 
entire joint facility and not limited to the DoD assets within the 
facility. If approved, this amendment would be a permanent solution 
that will negate the requirement for further extensions to the TRICARE 
co-pay waiver demonstration project.
    In order to allow seamless continuation of services to DoD 
beneficiaries at FHCC, the TRICARE co-pay waiver is also extended 
through September 30, 2020 to align with modification of language to FY 
2010

[[Page 51451]]

NDAA made in FY 2019 NDAA. 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 FY2019 and FY2020 is $305,985.

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, DoD will continue to 
pursue a permanent solution regarding DoD beneficiary co-pays that will 
ensure DoD beneficiaries are not levied cost shares, as FHCC represents 
the former Naval Hospital Great Lakes.

    Dated: October 5, 2018.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2018-22184 Filed 10-10-18; 8:45 am]
 BILLING CODE 5001-06-P