99-25871. EnrollmentProvision of Hospital and Outpatient Care to Veterans  

  • [Federal Register Volume 64, Number 193 (Wednesday, October 6, 1999)]
    [Rules and Regulations]
    [Pages 54207-54218]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-25871]
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF VETERANS AFFAIRS
    
    38 CFR Part 17
    
    RIN 2900-AJI8
    
    
    Enrollment--Provision of Hospital and Outpatient Care to Veterans
    
    AGENCY: Department of Veterans Affairs.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This document amends VA's medical regulations. The Veterans' 
    Health Care Eligibility Reform Act of 1996 mandates that VA implement a 
    national enrollment system to manage the delivery of healthcare 
    services. Accordingly, the medical regulations are amended to establish 
    provisions consistent with this mandate. Starting October 1, 1998, most 
    veterans were required to be enrolled in the VA healthcare system as a 
    condition of receiving VA hospital and outpatient care. Veterans will 
    be allowed to apply to be enrolled at any time. They will be eligible 
    to be enrolled based on funding availability and their priority status. 
    In accordance with statutory provisions, the final rule also states 
    that some categories of veterans are eligible for VA hospital and 
    outpatient care even if not enrolled. This document further establishes 
    a ``medical benefits package'' setting forth, with certain exceptions, 
    the hospital and outpatient care that will be provided to enrolled 
    veterans and certain other veterans.
        Moreover, this document announces that VA will enroll all 7 
    priority categories of veterans for the period October 1, 1999 through 
    September 30, 2000, unless it is necessary to change this determination 
    by a subsequent rulemaking document.
    
    DATES: Effective Date: November 5, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Roscoe Butler, Health Administration 
    Service, (10C3), Veterans Health Administration, Department of Veterans 
    Affairs, 810 Vermont Avenue, NW, Washington, DC 20420, (202) 273-8302. 
    (This is not a toll-free number.)
    
    SUPPLEMENTARY INFORMATION: In a document published in the Federal 
    Register on July 10, 1998 (63 FR 37299), we proposed to amend the 
    medical regulations at 38 CFR part 17. Public Law 104-262, the 
    Veterans' Health Care Eligibility Reform Act of 1996, mandates that VA 
    implement a national enrollment system to manage the delivery of 
    healthcare services. Public Law 104-262 also contains priority 
    categories for determining eligibility for enrollment. Accordingly, we 
    proposed
    
    [[Page 54208]]
    
    to amend the medical regulations to establish provisions consistent 
    with these statutory provisions. Starting October 1, 1998, most 
    veterans were required to be enrolled in the VA healthcare system as a 
    condition for receiving VA hospital and outpatient care. The proposal 
    also stated that these veterans would be allowed to apply to be 
    enrolled at any time. In accordance with statutory provisions, the 
    proposal further stated that some categories of veterans would be 
    eligible for VA hospital and outpatient care even if not enrolled. In 
    addition, we proposed to establish a ``medical benefits package'' 
    setting forth, with certain exceptions, the hospital and outpatient 
    care that would be provided to enrolled veterans and certain other 
    veterans.
        We received comments from 10 sources. The comments are discussed 
    below. Based on the rationale set forth in the proposed rule and in 
    this document, the provisions of the proposed rule are adopted as a 
    final rule with certain changes explained below.
    
    Catastrophically Disabled
    
        The priority listing for enrollment in proposed Sec. 17.36 provided 
    for certain catastrophically disabled veterans to be enrolled in 
    priority category 4 and for certain other catastrophically disabled 
    veterans to be enrolled in priority category 7. The proposed provisions 
    were based on an attempt to reconcile the provisions of 38 U.S.C. 1705 
    and 1710(a). The provisions of 38 U.S.C. 1705 include in priority 
    category 4 ``veterans who are catastrophically disabled.'' The 
    provisions of 38 U.S.C. 1710(a) set forth a preference scheme for 
    providing VA care first to ``mandatory veterans'' and then to 
    ``discretionary veterans.'' This preference scheme, if controlling, 
    would place some catastrophically disabled veterans in a lower priority 
    category than priority category 4. Several commenters asserted that the 
    provisions of 38 U.S.C. 1705 must be interpreted to require that all 
    catastrophically disabled veterans be enrolled in priority category 4. 
    Upon further consideration, we have concluded that the statutory 
    provisions in question are irreconcilable and that the rules of 
    statutory construction require that deference be given to the more 
    specific provisions in 38 U.S.C. 1705. Accordingly, except as discussed 
    below, the final rule includes all catastrophically disabled veterans 
    in priority category 4.
        Some veterans who are catastrophically disabled must agree to make 
    the applicable co-payment as a condition of being included in priority 
    category 4. This is because 38 U.S.C. 1710 imposes co-payments on 
    certain veterans, including some veterans who are catastrophically 
    disabled. Accordingly, we amended Sec. 17.36(b)(4) to reflect the co-
    payment requirement. We also made corresponding changes to 
    Sec. 17.36(d)(1) with respect to information to be included in the 
    application for enrollment in the VA healthcare system.
        In Sec. 17.36(e), the definition of the term ``catastrophically 
    disabled'' includes the requirement that the condition be 
    ``permanent.'' Some commenters opposed the inclusion of this 
    requirement. Although we have retained the requirement that the 
    condition be ``permanent,'' we have made clarifying changes.
        We believe that a condition causing an individual to be 
    catastrophically disabled must be a ``permanent'' condition. Under the 
    provisions of 38 U.S.C. 1705, priority category 4 consists of 
    ``Veterans who are in receipt of increased pension based on a need of 
    regular aid and attendance or by reason of being permanently housebound 
    and other veterans who are catastrophically disabled.'' The words 
    ``other veterans who are catastrophically disabled'' indicate that all 
    veterans in priority category 4 are ``catastrophically disabled'' and 
    are disabled to a similar extent. To be in receipt of increased pension 
    based on a need of regular aid and attendance or by reason of being 
    permanently housebound, a veteran must be permanently disabled (see 38 
    U.S.C. 1502 and 1521). We have thus construed this statutory priority 
    category to include only veterans with permanent conditions. Our 
    interpretation is consistent with other provisions of Pub. L. 104-262, 
    which, as noted above, includes the mandate that VA implement a 
    national enrollment system. In this regard, the four examples used to 
    describe the term ``disabled'' in 38 U.S.C. 1706 are permanent 
    conditions, i.e., spinal cord dysfunction, blindness, amputations, and 
    serious mental illness. Moreover, the legislative history of Pub. L. 
    104-262 refers to a permanent condition, spinal cord injury, to 
    describe the type of disabilities intended to be covered by the term 
    ``catastrophically disabled'' (House Report No. 690, 104th Cong., 2d 
    Sess. 7 (1996)) and the Joint Explanatory Statement for H.R. 3118, The 
    Proposed Veterans' Health Care Eligibility Reform Act of 1996 (142 
    Cong. Rec. S11642, S11646 (daily ed. Sept. 28, 1996)).
        We have, however, clarified the criteria for determining when a 
    condition is permanent. In this regard, we have revised the second 
    sentence in Sec. 17.36(e) to read as follows: ``This definition is met 
    if an individual has been found by the Chief of Staff (or equivalent 
    clinical official) at the VA facility where the individual was examined 
    to have a permanent condition specified in paragraph (e)(1) of this 
    section; to meet permanently one of the conditions specified in 
    paragraph (e)(2) of this section by a clinical evaluation of the 
    patient's medical records that documents that the patient previously 
    met the permanent criteria and continues to meet such criteria 
    (permanently) or would continue to meet such criteria (permanently) 
    without the continuation of on-going treatment; or to meet permanently 
    one of the conditions specified in paragraph (e)(2) of this section by 
    a current medical examination that documents that the patient meets the 
    permanent criteria and will continue to meet such criteria 
    (permanently) or would continue to meet such criteria (permanently) 
    without the continuation of on-going treatment.'' This clarifies that a 
    veteran who previously met the criteria in Sec. 17.36(e)(2) for 
    establishing a permanent condition would continue to meet the criteria 
    even if the condition has improved because of ongoing treatment. In our 
    view, on-going treatment does not change the finding that the condition 
    is permanent.
        In Sec. 17.36, paragraph (e) defines the term ``catastrophically 
    disabled'' and includes provisions stating that the definition is met 
    if certain conditions are met. One commenter argued that in order to be 
    determined to be ``catastrophically disabled'' a veteran should be 
    required to meet the definition or the conditions, but not both. No 
    changes are made based on this comment. Both the definition and the 
    specific conditions or the functional disability levels that meet the 
    definition are necessary to ensure that the term ``catastrophically 
    disabled'' is uniformly applied.
        Under the provisions of Sec. 17.36(b)(4), a veteran may be 
    determined to be catastrophically disabled and thereby included in 
    priority category 4 only if determined to be catastrophically disabled 
    by the Chief of Staff (or equivalent clinical official) at the VA 
    facility where the veteran was examined. One commenter suggested that 
    VA include in the regulations additional information concerning 
    examinations for determining whether veterans are catastrophically 
    disabled, i.e., how a first-time applicant could obtain 
    catastrophically disabled status, how the examination would be 
    conducted, and whether records of previous treatment and examination 
    could be substituted for a current examination. No changes are made
    
    [[Page 54209]]
    
    based on this comment. We will consider a subsequent amendment to this 
    final rule to include additional procedures as warranted. Currently, 
    examinations could be provided based on the request of a veteran or VA. 
    Also, the Chief of Staff (or equivalent clinical official) at the VA 
    facility where the individual was examined would make decisions based 
    on the criteria in the final rule for determining whether a veteran is 
    catastrophically disabled and could use any available records in making 
    the decision. Further, the decisionmaker could make a decision without 
    requiring a new examination if the records are sufficient.
        One commenter asserted that the determination by the Chief of Staff 
    (or equivalent clinical official) constitutes an appeal and that the 
    final rule should include appeal procedures and time limits for this 
    decision. No changes are made based on this comment. The decision by 
    the Chief of Staff (or equivalent clinical official) constitutes the 
    initial decision. It is that decision that could be appealed.
        In the proposal, the conditions for determining whether a veteran 
    is catastrophically disabled included a finding that the veteran is 
    ``[d]ependent in 4 or more Activities of Daily Living (eating, 
    dressing, bathing, toileting, transferring, incontinence of bowel and/
    or bladder), with at least 4 of the dependencies being permanent, using 
    the Katz scale.'' Commenters argued that the reference to 4 should be 
    lowered in both places to 3. We have compared the conditions with the 
    definition of catastrophically disabled and have concluded that the 
    definition would still be met if the number were changed to 3 in both 
    places. Accordingly, we have made these changes in the final rule.
        In the proposal, the conditions for determining whether a veteran 
    is catastrophically disabled include a finding that the veteran scored 
    30 or lower using the Global Assessment of Functioning. Commenters 
    asserted that the score for the Global Assessment of Functioning should 
    be raised to 40. No changes are made based on these comments. Patients 
    above 30 are in a range described as severe but less than catastrophic 
    in that they do not require personal or mechanical assistance to leave 
    home or bed or require constant supervision to avoid physical harm to 
    self or others. Accordingly, they would not meet the definition of 
    catastrophically disabled.
        Commenters recommended that the list of conditions in Sec. 17.36(e) 
    that would establish that a veteran is ``catastrophically disabled'' 
    should be expanded to include chronic and severe mental illnesses, 
    Amyotrophic Lateral Sclerosis, Multiple Sclerosis, a score of 5 or 
    higher on the Kurtzke Expanded Disability Status Scale for Multiple 
    Sclerosis, and possibly other things. No changes are made based on 
    these comments. Conditions not specifically mentioned, including those 
    mentioned by the commenters, would be covered when the criteria in 
    Sec. 17.36(e) are met. It is impractical to attempt to list all of the 
    specific conditions that would be covered by the criteria.
        The list of conditions for establishing that a veteran is 
    catastrophically disabled includes a condition resulting from two of 
    the specified procedures in Sec. 17.36(e)(1) provided the two 
    procedures were not on the same limb. The proposed procedures included 
    ``Amputation of toe (only if accompanied by V49.71 code for amputated 
    great toe) (procedure code 84.11).'' These provisions are clarified to 
    reflect more clearly that the toe amputated must be the great toe.
        The proposed list of conditions for establishing that a veteran is 
    catastrophically disabled included permanent ``unspecified 
    hemiplegia.'' This is deleted. The final rule provides that a veteran 
    is catastrophically disabled upon a finding of a score of 2 or lower on 
    at least 4 of the 13 motor items using the Functional Independence 
    Measure. This finding necessarily could be made if a veteran had 
    hemiplegia that would be catastrophically disabling. This Functional 
    Independence Measure is a more appropriate method of determining 
    whether hemiplegia constitutes a catastrophic disability.
        The proposed list of conditions for establishing that a veteran is 
    catastrophically disabled included a score of 14 or higher on the 
    Activities of Daily Living (ADL) Index using Resource Utilizations 
    Group (RUG) III. This condition is deleted. The ADL section is one part 
    of a complex multidimensional assessment tool known as the Minimum Data 
    Set (MDS). All sections in the MDS contribute to the construction of 44 
    RUGs (RUG III). Therefore isolating one section and attempting to 
    calculate a numerical score invalidates the purpose for which the 
    instrument was designed.
        Moreover, this should not have any negative effects on veterans. 
    The category of veterans intended to meet the definition of 
    catastrophically disabled based on the ADL criteria necessarily would 
    also meet the definition of catastrophically disabled based on the 
    criteria in Secs. 17.36(e)(2)(i) or (iii) i.e., dependent in 3 or more 
    Activities of Daily Living (eating, dressing, bathing, toileting, 
    transferring, incontinence of bowel and/or bladder), with at least 3 of 
    the dependencies being permanent, using the Katz scale; or a score of 2 
    or lower on at least 4 of the 13 motor items using the Functional 
    Independence Measure. In the ADL provision, ``dependent'' was intended 
    to mean fully dependent. Being fully dependent is represented by a 
    rating of 1 on the Katz scale. We have clarified the rule accordingly.
        One commenter questioned how the definition and conditions were 
    established for determining when an individual is ``catastrophically 
    disabled''. In this regard, we note that the definition and conditions 
    were formulated by knowledgeable VA clinical experts.
        One commenter asserted that VA form 10-10 EZ should be amended to 
    specifically ask whether a veteran is requesting an examination to 
    determine whether the veteran is catastrophically disabled. No changes 
    are made based on this comment. The issue of whether an individual 
    should be examined is a complex matter (see Sec. 17.36(e)) that does 
    not lend itself readily to the form. Further, before a veteran would be 
    removed from the list of enrollees based on a priority status lower 
    than priority category 4, the veteran first would be provided a letter 
    advising of the opportunity to request that action be taken (including 
    an examination, if needed) to determine whether the veteran is 
    catastrophically disabled and thereby eligible for inclusion in 
    priority category 4.
    
    Additional Enrollment Issues
    
        One commenter opposed any enrollment system that could exclude any 
    categories of veterans from access to medical care. No changes are made 
    based on this comment. The Veterans' Health Care Eligibility Reform Act 
    requires that we establish a system for the management of hospital and 
    outpatient care based on priorities and available funding.
        One commenter asserted that nonservice-connected Purple Heart 
    recipients should be included in priority category 3. No changes are 
    made based on this comment. The priority categories are established by 
    statute, and there is no authority to include this category of veterans 
    in priority category 3.
        One commenter asserted that within priority category 7, military 
    retirees should be given a subpriority based on the further assertion 
    that military retirement benefits are inadequate. No changes are made 
    based on this
    
    [[Page 54210]]
    
    comment. This final rule is not an appropriate forum for addressing 
    military retirement benefits.
        One commenter asserted that enrollment status decisions should be 
    transferable among VA medical facilities. In response, we have added a 
    note to Sec. 17.36 to clarify that a veteran's enrollment status will 
    be honored by all VA medical facilities in the United States (care 
    abroad is covered by 38 U.S.C. 1724).
        One commenter asserted that veterans should be given a presumption 
    of entitlement to medical services when they initially apply or reapply 
    for enrollment and should receive medical services until an appeal is 
    decided. No changes are made based on this comment. We have no 
    authority to include such provisions in the final rule.
        One commenter asserted that enrollment should guarantee a veteran 
    access to the ``medical benefits package'' for a certain period of 
    time, e.g. until the end of the fiscal year. Commenters also asserted 
    that after a number of years of receiving VA medical services an 
    enrollee's right to receive medical services should become permanent. 
    No changes are made based on these comments. It is our intent under the 
    provisions of Sec. 17.36 to try to predict accurately for the whole 
    fiscal year how many priority categories will be funded. However, the 
    regulations must include provisions for amending the determination at 
    any time because VA can only provide services insofar as there are 
    available funds to cover the services. Further, we have no authority to 
    make permanent an enrollee's right to receive medical services.
        Under the provisions of Sec. 17.36(d)(4)(iii), a veteran who had 
    been enrolled based on inclusion in priority category 5 will be 
    disenrolled if the veteran does not return to VA a completed form VA 
    Form 10-10EZ. One commenter asserted that this provision could cause 
    some of the most vulnerable veterans to lose their medical benefits. No 
    changes are made based on this comment. This will not disadvantage 
    veterans who are disenrolled merely because they did not return the 
    form. Under the provisions of Sec. 17.36 such a veteran may reapply to 
    be enrolled at any time and thereby supply the information necessary to 
    determine their enrollment priority category.
        One commenter opposed the provisions in Sec. 17.36(d)(4)(i) which 
    state that a veteran will be removed from the list of enrollees if the 
    veteran submits to a VA medical center a signed document stating that 
    the veteran no longer wishes to be enrolled. No changes are made based 
    on this comment. If a veteran no longer intends to obtain VA care we 
    would like to be informed so that we can better predict the demand for 
    VA care. However, this will not disadvantage those who wish to restore 
    their enrollment status since, as noted above, a veteran may reapply to 
    be enrolled at any time.
        Commenters asserted that the letter that VA sends veterans 
    concerning their enrollment status should indicate which priority group 
    the veteran was placed in and all co-payment information. We intend to 
    provide this information to enrolled veterans as soon as possible.
        Under the provisions of Pub. L. 105-368, a veteran enrolled based 
    on an illness associated with service in combat in a war after the Gulf 
    War or during a period of hostility after November 11, 1998, is 
    included in priority category 6 and is eligible for VA hospital and 
    outpatient care provided in the medical benefits package for the 
    illness. The final rule is amended to reflect this statutory change.
    
    Hospital and Outpatient Care to Veterans Who are not Enrolled in 
    the VA Healthcare System
    
        Consistent with the provisions of Pub. L. 104-262, Sec. 17.37 
    specifies when VA may provide hospital and outpatient care to veterans 
    who are not enrolled in the VA healthcare system. One commenter 
    asserted that this should include a statement that a veteran who is not 
    enrolled in the VA healthcare system may receive an examination to 
    determine whether the veteran is eligible for inclusion in priority 
    category 4 based on a finding that the veteran is catastrophically 
    disabled. We agree and have amended Sec. 17.37 accordingly.
    
    Medical Benefits Package
    
        One commenter argued that the final rule should concern only a 
    national enrollment system and, accordingly, should not include a 
    medical benefits package. Although the commenter concluded that VA has 
    inherent authority to establish a medical benefits package, the 
    commenter asserted that the proposed rule purportedly was designed 
    solely ``to implement the Veterans' Health Care Eligibility Reform Act 
    of 1996'' and that the ``medical benefits package'' went beyond this 
    statutory authority. The commenter also asserted that the statutory 
    provisions at 38 U.S.C. 1701 and the regulations at 38 CFR 17.30 are 
    adequate for determining what care will be provided to enrolled 
    veterans. The commenter further asserted that we did not provide 
    sufficient rationale or justification for the establishment of a 
    ``medical benefits package.'' No changes are made based on these 
    comments. Although the Veterans' Health Care Eligibility Reform Act of 
    1996 did not direct VA to create a medical benefits package, we believe 
    that it is necessary under the requirements of the Administrative 
    Procedure Act to inform affected individuals concerning the care that 
    would or would not be provided to veterans enrolled in the VA 
    healthcare system. The definitions of terms in 38 U.S.C. 1701 and 38 
    CFR 17.30 are not adequate by themselves to allow individuals to make 
    such determinations. Further, the following statement in the preamble 
    portion of the proposed rule provided the rational basis for the 
    medical benefits package: ``The Secretary has authority to provide 
    healthcare as determined to be medically needed. In our view, medically 
    needed constitutes care that is determined by appropriate healthcare 
    professionals to be needed to promote, preserve, or restore the health 
    of the individual and to be in accord with generally accepted standards 
    of medical practice. The care included in the proposed `medical 
    benefits package' is intended to meet these criteria.''
        Commenters asserted that infertility services, pregnancy and 
    delivery, surgical implantation of penile prostheses, and membership in 
    spas and health clubs should be included in the medical benefits 
    package. As noted above, the medical benefits package would include 
    ``care that is determined by appropriate healthcare professionals to be 
    needed to promote, preserve, or restore the health of the individual 
    and to be in accord with generally accepted standards of medical 
    practice.'' Upon reconsideration, we conclude that pregnancy and 
    delivery services (to the extent we have legal authority to provide 
    such services) meet these criteria and should be included in the 
    medical benefits package. We also conclude that membership in spas and 
    health clubs does not meet these criteria and should not be included. 
    Further, under these criteria, we have determined that reproductive 
    sterilization, surgery to reverse voluntary sterilization, infertility 
    services (other than in vitro fertilization), and surgical implantation 
    of penile prostheses should not be excluded. Appropriate changes are 
    made to the medical benefits package to reflect these determinations.
        Commenters asserted that the ``medical benefits package'' should 
    cover all emergency care for all enrolled veterans. No changes are made 
    based on these comments. The final rule includes in the ``medical 
    benefits package'' all of
    
    [[Page 54211]]
    
    the emergency care that VA is authorized to provide to enrolled 
    veterans (see 38 U.S.C. 1703, 1728).
        Priority category 6 includes veterans solely seeking care for a 
    disorder associated with exposure to a toxic substance or radiation or 
    for a disorder associated with service in the Southwest Asia theater of 
    operations during the Gulf War, as provided in 38 U.S.C. 1710(e). One 
    commenter asserted that these veterans should be eligible to receive 
    the full ``medical benefits package'' because of such disorders. No 
    changes are made based on this comment. The restrictions for this 
    category are required by 38 U.S.C. 1710(e).
        One commenter asserted that the final rule should include provision 
    for ``long-term care services.'' No changes are made based on this 
    comment. The medical benefits package includes non-institutional long-
    term care services, such as home health care. The statutory framework 
    for the enrollment system does not cover nursing home care.
        The medical benefits package includes prescription drugs available 
    under the VA national formulary system. Commenters argued that this is 
    inadequate based on the assertion that this would limit drugs only to 
    those listed and exclude any opportunity for using non-listed drugs. No 
    changes are made based on these comments. The national formulary system 
    includes a mechanism for the provision of drugs and medicines not 
    listed in the formulary.
        Commenters recommend that the ``medical benefits package'' include 
    a statement that VA will maintain its capacity to treat disabled 
    veterans in accordance with the provisions of 38 U.S.C. 1706. No 
    changes are made based on these comments. The statutory provisions are 
    adequate by themselves to provide notice of this requirement.
        Commenters asserted that a determination regarding care received 
    under the ``medical benefits package'' should only be made by a 
    physician in the appropriate medical specialty and that a veteran 
    should have direct access to the medical specialist of choice. No 
    changes are made based on these comments. Consistent with the trends in 
    industry practice, we believe that generally veterans should first meet 
    with primary care healthcare professionals and then be referred to 
    medical specialists, if necessary.
        Commenters asserted that the letter that VA sends veterans 
    concerning their enrollment status should specify what services are 
    available to enrollees. No changes are made based on these comments. 
    The enrollment status letter will provide an overview of the services 
    available and will include a toll-free telephone number for veterans to 
    call for further information.
        We also have made a clarifying change to the medical benefits 
    package to state that it includes the completion of certain forms 
    (e.g., Family Medical Leave forms, life insurance applications, 
    Department of Education forms for loan repayment exemptions based on 
    disability, non-VA disability program forms) by healthcare 
    professionals based on an examination or knowledge of the veteran's 
    condition, but not including the completion of forms for examinations 
    where payment for such examinations cannot be paid to VA but can be 
    paid to other health care practitioners. This is a medical service that 
    generally is provided under customary medical practice.
    
    Notice of Priority Categories Eligible for Enrollment
    
        The proposed rule provided for the Secretary to publish notices in 
    the notice section of the Federal Register announcing which categories 
    of veterans are eligible to be enrolled. One commenter asserted that 
    the determinations made must be published as rules and that such rules 
    can be made only after prior notice and comment. In response, we have 
    changed the provisions of the final rule to provide for inclusion of 
    the announcements by the Secretary in the regulatory material at 
    Sec. 17.36. Determinations regarding notice and comment will be made in 
    accordance with the provisions of the Administrative Procedure Act.
        Also, the criteria in Sec. 17.36 for determining which categories 
    of veterans are eligible to be enrolled are clarified to more 
    accurately reflect the elements necessary for making the determination.
    
    Appeals
    
        Commenters asserted that the proposed rule did not contain 
    sufficient notice of appeal rights for enrollment determinations. In 
    response, we have added information to Sec. 17.36(d)(5) stating that 
    the letter providing notification of enrollment status (enrollment or 
    disenrollment) will include an effective date for any changes and will 
    include a statement regarding appeal rights.
        As stated in the proposal, veterans may appeal VA decisions 
    regarding enrollment and disenrollment to the Board of Veterans' 
    Appeals and the Court of Veterans Appeals. Commenters asserted that 
    actions on appeals to the Board take too long and that special 
    intermediate appeal procedures must be established to protect veterans' 
    access to healthcare. Most of the enrollment determinations will be 
    based on the ministerial application of determinations made by the VA's 
    Veterans Benefits Administration. There is already a process for 
    obtaining reconsideration of these VBA determinations at the Regional 
    Office level. It would be inappropriate for VA's Veterans Health 
    Administration (VHA) which administers the National Enrollment System 
    to provide appellate rights for these VBA issues. Further, although we 
    are not required to do so, we are in the process of formulating 
    voluntary intermediate reconsideration procedures for VHA decisions (63 
    FR 9990). In this regard, we are considering whether to apply such 
    voluntary intermediate appeal procedures to certain VHA enrollment 
    issues, such as decisions concerning catastrophic disabilities and 
    means testing.
        One commenter asserted that a veteran should not lose benefits for 
    at least 90 days or until the completion of an appeal. No changes are 
    made based on this comment. We have no authority to establish such a 
    rule.
        Commenters asserted that the Presidential Memorandum on Federal 
    Agency Compliance with the Patient Bill of Rights requires appeal 
    procedures for enrollment issues. No changes are made based on these 
    comments. This Memorandum was intended to ensure additional process for 
    medical determinations not subject to the appellate jurisdiction of the 
    Board of Veterans Appeals, such as the need for and appropriateness of 
    specific types of medical care and treatment for an individual. 
    Further, as noted above, we are taking steps to establish intermediate 
    appeal procedures as appropriate.
        Commenters asserted that the final rule should specifically state 
    that the Board of Veterans Appeals has appellate jurisdiction of VHA 
    determinations concerning whether a veteran is catastrophically 
    disabled. No changes are made based on these comments. We agree that 
    under 38 CFR 20.101(b) the Board has jurisdiction over these 
    determinations. Further, we do not believe that there is a need to 
    include specific provisions in the final rule regarding this matter.
    
    Miscellaneous
    
        Non-substantive changes have been made for purposes of 
    clarification.
    
    Announcement Regarding Enrollment of Priority Categories
    
        VA will enroll all 7 priority categories of veterans for the period 
    October 1,
    
    [[Page 54212]]
    
    1999 through September 30, 2000, unless changed by a subsequent 
    rulemaking document.
    
    OMB
    
        This document has been reviewed by the Office of Management and 
    Budget under Executive Order 12866.
    
    Paperwork Reduction Act
    
        The collection of information contained in the notice of the 
    proposed rulemaking was submitted to the Office of Management and 
    Budget (OMB) for review in accordance with the Paperwork Reduction Act 
    (44 U.S.C. 3504(h)). The information collection subject to this 
    rulemaking concerns:
        (1) Initial Application for Health Benefits. Under the provisions 
    of Sec. 17.36(d)(1), a veteran who wishes to be enrolled must apply by 
    submitting a VA Form 10-10EZ to a VA medical facility. Veterans 
    applying based on inclusion in categories 1, 2, 3, 6, and 7 do not need 
    to complete section II, but must complete the rest of the form. 
    Veterans applying based on inclusion in priority category 4 must 
    complete all or a portion of VA Form 10-10EZ as set forth in 
    Sec. 17.36(d)(1). Veterans applying based on inclusion in priority 
    category 5 must complete the entire form. VA Form 10-10EZ is set forth 
    in full at Sec. 17.36(f). This information is needed to determine 
    whether a veteran is eligible to be enrolled in the VA healthcare 
    system and, consequently, whether the veteran is eligible for VA 
    hospital and outpatient care;
        (2) Yearly Re-application for Health Benefits. Under the provisions 
    of Sec. 17.36(d)(4)(iii), veterans enrolled based on inclusion in 
    priority category 5 will be mailed a Form 10-10EZ on a yearly basis. 
    They will be requested to complete the form and return the form to the 
    address on the return envelope. VA Form 10-10EZ is set forth in full at 
    Sec. 17.36(f). This information is needed to determine whether a 
    veteran is eligible to continue to be enrolled in the VA healthcare 
    system, and, consequently, whether the veteran is eligible to continue 
    to receive VA hospital and outpatient care;
        (3) Voluntary disenrollment. Under the provisions of 
    Sec. 17.36(d)(4)(i), a veteran wishing to disenroll and forgo VA 
    hospital and outpatient care must submit to a VA medical center a 
    signed document stating that the veteran no longer wishes to be 
    enrolled. This information is needed to determine the identity of those 
    veterans wishing to disenroll and forgo VA hospital and outpatient 
    care. This will help VA determine how to allocate available funding for 
    hospital and outpatient care.
        Interested parties were invited to submit comments on the 
    collection of information. However, no comments were received. OMB has 
    approved this information collection under control number 2900-0091.
        VA is not authorized to impose a penalty on persons for failure to 
    comply with information collection requirements which do not display a 
    current OMB control number, if required.
    
    Regulatory Flexibility Act
    
        The Secretary hereby certifies that this proposed rule will not 
    have a significant economic impact on a substantial number of small 
    entities as they are defined in the Regulatory Flexibility Act, 5 
    U.S.C. 601-612. This proposed rule would affect only individuals. 
    Accordingly, pursuant to 5 U.S.C. 605(b), this proposed rule is exempt 
    from the initial and final regulatory flexibility analysis requirements 
    of Secs. 603 and 604.
        The Catalog of Federal domestic assistance numbers for the programs 
    affected by this rule are 64.005, 64.007.64.008, 64,009, 64.010, 
    64.011, 64.012, 64.013, 64.014, 64.015, 64.016, 64.018, 64.019, 64.022, 
    and 64.025.
    
    List of Subjects in 38 CFR Part 17
    
        Administrative practice and procedure, Alcohol abuse, Alcoholism, 
    Claims, Day care, Dental health, Drug abuse, Foreign relations, 
    Government contracts, Grant programs-- health, Grant programs--
    veterans, Health care, Health facilities, Health professions, Health 
    records, Homeless, Medical and dental schools, Medical devices, Medical 
    research, Mental health programs, Nursing homes, Philippines, Reporting 
    and recordkeeping requirements, Scholarships and fellowships, Travel 
    and transportation expenses, Veterans.
    
        Approved: July 16, 1999.
    Togo D. West, Jr.,
    Secretary of Veterans Affairs.
        For the reasons set out in the preamble, 38 CFR part 17 is amended 
    as set forth below:
    
    PART 17--MEDICAL
    
        1. The authority citation for part 17 continues to read as follows:
    
        Authority: 38 U.S.C. 501, 1721, unless otherwise noted.
    
    
    Sec. 17.34  [Amended]
    
        2. The first sentence of Sec. 17.34 is amended by removing ``When 
    an application'' and adding, in its place, ``Subject to the provisions 
    of Secs. 17.36 through 17.38, when an application''.
        3. An undesignated center heading, Sec. 17.36, and a parenthetical 
    at the end of the section are added to read as follows:
    
    Enrollment Provisions and Medical Benefits Package
    
    
    Sec. 17.36  Enrollment--provision of hospital and outpatient care to 
    veterans.
    
        (a) Enrollment requirement for veterans. (1) Except as otherwise 
    provided in Sec. 17.37, a veteran must be enrolled in the VA healthcare 
    system as a condition for receiving VA hospital and outpatient care.
    
        Note to paragraph (a)(1): A veteran may apply to be enrolled at 
    any time. (See Sec. 17.36(d)(1).)
    
        (2) Except as provided in paragraph (a)(3) of this section, a 
    veteran enrolled under this section is eligible for VA hospital and 
    outpatient care as provided in the ``medical benefits package'' set 
    forth in Sec. 17.38.
    
        Note to paragraph (a)(2): A veteran's enrollment status will be 
    recognized throughout the United States.
    
        (3) A veteran enrolled based on having a disorder associated with 
    exposure to a toxic substance or radiation, for a disorder associated 
    with service in the Southwest Asia theater of operations during the 
    Gulf War, or any illness associated with service in combat in a war 
    after the Gulf War or during a period of hostility after November 11, 
    1998, as provided in 38 U.S.C. 1710(e), is eligible for VA hospital and 
    outpatient care provided in the ``medical benefits package'' set forth 
    in Sec. 17.38 for the disorder.
        (b) Categories of veterans eligible to be enrolled. The Secretary 
    will determine which categories of veterans are eligible to be enrolled 
    based on the following order of priority:
        (1) Veterans with a singular or combined rating of 50 percent or 
    greater based on one or more service-connected disabilities or 
    unemployability.
        (2) Veterans with a singular or combined rating of 30 percent or 40 
    percent based on one or more service-connected disabilities.
        (3) Veterans who are former prisoners of war; veterans with a 
    singular or combined rating of 10 percent or 20 percent based on one or 
    more service-connected disabilities; veterans who were discharged or 
    released from active military service for a disability incurred or 
    aggravated in the line of duty; veterans who receive disability 
    compensation under 38 U.S.C. 1151; veterans whose entitlement to 
    disability compensation is suspended pursuant to 38 U.S.C. 1151, but 
    only to the extent
    
    [[Page 54213]]
    
    that such veterans' continuing eligibility for hospital and outpatient 
    care is provided for in the judgment or settlement described in 38 
    U.S.C. 1151; veterans whose entitlement to disability compensation is 
    suspended because of the receipt of military retired pay; and veterans 
    receiving compensation at the 10 percent rating level based on multiple 
    noncompensable service-connected disabilities that clearly interfere 
    with normal employability.
        (4) Veterans who receive increased pension based on their need for 
    regular aid and attendance or by reason of being permanently housebound 
    and other veterans who are determined to be catastrophically disabled 
    by the Chief of Staff (or equivalent clinical official) at the VA 
    facility where they were examined; except that a veteran who is 
    catastrophically disabled and who must agree under 38 U.S.C. 1710 to 
    pay to the United States a co-payment as condition of receiving VA 
    care, must agree to pay to the United States the applicable co-payment 
    to be enrolled in priority category 4.
        (5) Veterans not covered by paragraphs (b)(1) through (b)(4) of 
    this section who are determined to be unable to defray the expenses of 
    necessary care under 38 U.S.C. 1722(a).
        (6) Veterans of the Mexican border period or of World War I; 
    veterans solely seeking care for a disorder associated with exposure to 
    a toxic substance or radiation, for a disorder associated with service 
    in the Southwest Asia theater of operations during the Gulf War, or for 
    any illness associated with service in combat in a war after the Gulf 
    War or during a period of hostility after November 11, 1998, as 
    provided and limited in 38 U.S.C. 1710(e); and veterans with 0 percent 
    service-connected disabilities who are nevertheless compensated, 
    including veterans receiving compensation for inactive tuberculosis.
        (7) Veterans who agree to pay to the United States the applicable 
    copayment determined under 38 U.S.C. 1710(f) and 1710(g). This category 
    is further prioritized into the following subcategories:
        (i) Noncompensable zero percent service-connected veterans; and
        (ii) All other priority category 7 veterans.
        (c) Federal Register notification of eligible enrollees. (1) It is 
    anticipated that on or before August 1 of each year the Secretary will 
    announce in paragraph (c)(2) of this section which categories of 
    veterans are eligible to be enrolled. As necessary, the Secretary at 
    any time may revise this determination by further amending paragraph 
    (c)(2) of this section. The preamble to a Federal Register document 
    announcing which priority categories are eligible to be enrolled must 
    specify the projected number of fiscal year applicants for enrollment 
    in each priority category, projected healthcare utilization and 
    expenditures for veterans in each priority category, appropriated funds 
    and other revenue projected to be available for fiscal year enrollees, 
    and results--projected total expenditures for enrollees by priority 
    category. The determination should include consideration of relevant 
    internal and external factors, e.g., economic changes, changes in 
    medical practices, and waiting times to obtain an appointment for care. 
    Consistent with these criteria, the Secretary will determine which 
    categories of veterans are eligible to be enrolled based on the order 
    of priority specified in paragraph (b) of this section.
        (2) Unless changed by a rulemaking document in accordance with 
    paragraph (c)(1) of this section, VA will enroll all priority 
    categories of veterans set forth in Sec. 17.36(b) for the period from 
    October 1, 1999 through September 30, 2000.
        (d) Enrollment and disenrollment process--(1) Application for 
    enrollment. A veteran may apply to be enrolled in the VA healthcare 
    system at any time. A veteran who wishes to be enrolled must apply by 
    submitting a VA Form 10-10EZ to a VA medical facility. Veterans 
    applying based on inclusion in priority categories 1, 2, 3, 6, and 7 do 
    not need to complete section II, but must complete the rest of the 
    form. Veterans applying based on inclusion in priority category 4 
    because of their need for regular aid and attendance or by being 
    permanently housebound need not complete section II, but must complete 
    the rest of the form. Veterans applying based on inclusion in priority 
    category 4 because they are catastrophically disabled need not complete 
    section II, but must complete the rest of the form, if: they agree to 
    pay to the United States the applicable copayment determined under 38 
    U.S.C. 1710(f) and 1710(g); they are a veteran of the Mexican border 
    period or of World War I or a veteran with a 0 percent service-
    connected disability who is nevertheless compensated; their 
    catastrophic disability is a disorder associated with exposure to a 
    toxic substance or radiation, or with service in the Southwest Asia 
    theater of operations during the Gulf War as provided in 38 U.S.C. 
    1710(e); or their catastrophic disability is an illness associated with 
    service in combat in a war after the Gulf War or during a period of 
    hostility after November 11, 1998, as provided in 38 U.S.C. 1710(e). 
    All other veterans applying based on inclusion in priority category 4 
    because they are catastrophically disabled must complete the entire 
    form. Veterans applying based on inclusion in priority category 5 must 
    complete the entire form. VA Form 10-10EZ is set forth in paragraph (f) 
    of this section and is available from VA medical facilities.
    
        Note to paragraph (d)(1): To remain enrolled based on inclusion 
    in priority category 5, a veteran annually must return information 
    to VA on a VA Form 10-10EZ as provided in paragraph (d)(4)(iii) of 
    this section and otherwise meet the requirements for enrollment.
    
        (2) Action on application. Upon receipt of a completed VA Form 10-
    10EZ, a VA network or facility director, or the Chief Network Officer, 
    will accept a veteran as an enrollee upon determining that the veteran 
    is in a priority category eligible to be enrolled as set forth in 
    Sec. 17.36(c)(2). Upon determining that a veteran is not in a priority 
    category eligible to be enrolled, the VA network or facility director, 
    or the Chief Network Officer, will inform the applicant that the 
    applicant is ineligible to be enrolled.
        (3) Automatic enrollment. Notwithstanding other provisions of this 
    section, veterans who were notified by VA letter that they were 
    enrolled in the VA healthcare system under the trial VA enrollment 
    program prior to October 1, 1998, automatically will be enrolled in the 
    VA healthcare system under this section if determined by a VA network 
    or facility director, or the Chief Network Officer, that the veteran is 
    in a priority category eligible to be enrolled as set forth in 
    Sec. 17.36(c)(2). Upon determining that a veteran is not in a priority 
    category eligible to be enrolled, the VA network or facility director, 
    or the Chief Network Officer, will inform the veteran that the veteran 
    is ineligible to be enrolled.
        (4) Disenrollment. A veteran enrolled under paragraph (d)(2) or 
    (d)(3) of this section will be disenrolled only if:
        (i) The veteran submits to a VA medical center a signed document 
    stating that the veteran no longer wishes to be enrolled;
        (ii) A VA network or facility director, or the Chief Network 
    Officer, determines that the veteran is no longer in a priority 
    category eligible to be enrolled, as set forth in Sec. 17.36(c)(2); or
        (iii) A VA network or facility director, or the Chief Network 
    Officer, determines that the veteran has been enrolled based on 
    inclusion in priority category 5; determines that the veteran was sent 
    by mail a VA Form 10-10EZ; and determines that the veteran failed to
    
    [[Page 54214]]
    
    return the completed form to the address on the return envelope within 
    60 days from receipt of the form. VA Form 10-10EZ is set forth in 
    paragraph (f) of this section.
        (5) Notification of enrollment status. Notice of a decision by a VA 
    network or facility director, or the Chief Network Officer, regarding 
    enrollment status will be provided to the affected veteran by letter 
    and will contain the reasons for the decision. The letter will include 
    an effective date for any changes and a statement regarding appeal 
    rights. The decision will be based on all information available to the 
    decisionmaker, including the information contained in VA Form 10-10EZ.
        (e) Catastrophically disabled. For purposes of this section, 
    catastrophically disabled means to have a permanent severely disabling 
    injury, disorder, or disease that compromises the ability to carry out 
    the activities of daily living to such a degree that the individual 
    requires personal or mechanical assistance to leave home or bed or 
    requires constant supervision to avoid physical harm to self or others. 
    This definition is met if an individual has been found by the Chief of 
    Staff (or equivalent clinical official) at the VA facility where the 
    individual was examined to have a permanent condition specified in 
    paragraph (e)(1) of this section; to meet permanently one of the 
    conditions specified in paragraph (e)(2) of this section by a clinical 
    evaluation of the patient's medical records that documents that the 
    patient previously met the permanent criteria and continues to meet 
    such criteria (permanently) or would continue to meet such criteria 
    (permanently) without the continuation of on-going treatment; or to 
    meet permanently one of the conditions specified in paragraph (e)(2) of 
    this section by a current medical examination that documents that the 
    patient meets the permanent criteria and will continue to meet such 
    criteria (permanently) or would continue to meet such criteria 
    (permanently) without the continuation of on-going treatment.
        (1) Quadriplegia and quadriparesis (ICD-9-CM Code 344.0x: 344.00, 
    344.01, 344.02, 344.03, 344.04, 3.44.09), paraplegia (ICD-9-CM Code 
    344.1), blindness (ICD-9-CM Code 369.4), persistent vegetative state 
    (ICD-9-CM Code 780.03), or a condition resulting from two of the 
    following procedures (ICD-9-CM Code 84.x or associated V Codes when 
    available or Current Procedural Terminology (CPT) Codes) provided the 
    two procedures were not on the same limb:
        (i) Amputation through hand (ICD-9-CM Code 84.03 or V Code V49.63 
    or CPT Code 25927);
        (ii) Disarticulation of wrist (ICD-9-CM Code 84.04 or V Code V49.64 
    or CPT Code 25920);
        (iii) Amputation through forearm (ICD-9-CM Code 84.05 or V Code 
    V49.65 or CPT Codes 25900, 25905);
        (iv) Disarticulation of forearm (ICD-9-CM Code 84.05 or V Code 
    V49.66 or CPT Codes 25900, 25905);
        (v) Amputation or disarticulation through elbow. (ICD-9-CM Code 
    84.06 or V Code V49.66 or CPT 24999);
        (vi) Amputation through humerus (ICD-9-CM Code 84.07 or V Code 
    V49.66 or CPT Codes 24900, 24920);
        (vii) Shoulder disarticulation (ICD-9-CM Code 84.08 or V Code 
    V49.67 or CPT Code 23920);
        (viii) Forequarter amputation (ICD-9-CM Code 84.09 or CPT Code 
    23900);
        (ix) Lower limb amputation not otherwise specified (ICD-9-CM Code 
    84.10 or V Code V49.70 or CPT Codes 27880, 27882);
        (x) Amputation of great toe (ICD-9-CM Code 84.11 or V Code V49.71 
    or CPT Codes 28810, 28820);
        (xi) Amputation through foot (ICD-9-CM Code 84.12 or V Code V49.73 
    or CPT Codes 28800, 28805);
        (xii) Disarticulation of ankle (ICD-9-CM Code 84.13 or V Code 
    V49.74 or CPT 27889);
        (xiii) Amputation through malleoli (ICD-9-CM Code 84.14 or V Code 
    V49.75 or CPT Code 27888);
        (xiv) Other amputation below knee (ICD-9-CM Code 84.15 or V Code 
    V49.75 or CPT Codes 27880, 27882);
        (xv) Disarticulation of knee (ICD-9-CM Code 84.16 or V Code V49.76 
    or CPT Code 27598);
        (xvi) Above knee amputation (ICD-9-CM Code 84.17 or V Code V49.76 
    or CPT Code 27598);
        (xvii) Disarticulation of hip (ICD-9-CM Code 84.18 or V Code V49.77 
    or CPT Code 27295); and
        (xviii) Hindquarter amputation (ICD-9-CM Code 84.19 or CPT Code 
    27290).
        (2)(i) Dependent in 3 or more Activities of Daily Living (eating, 
    dressing, bathing, toileting, transferring, incontinence of bowel and/
    or bladder), with at least 3 of the dependencies being permanent with a 
    rating of 1, using the Katz scale.
        (ii) A score of 10 or lower using the Folstein Mini-Mental State 
    Examination.
        (iii) A score of 2 or lower on at least 4 of the 13 motor items 
    using the Functional Independence Measure.
        (iv) A score of 30 or lower using the Global Assessment of 
    Functioning.
        (f) VA Form 10-10EZ. [insert actual photocopy of VA Form 10-10EZ]
    
    BILLING CODE 8320-01-P
    
    [[Page 54215]]
    
    [GRAPHIC] [TIFF OMITTED] TR06OC99.000
    
    
    
    [[Page 54216]]
    
    [GRAPHIC] [TIFF OMITTED] TR06OC99.001
    
    
    
    BILLING CODE 8320-01-C
    
    [[Page 54217]]
    
        (The Office of Management and Budget has approved the information 
    collection requirements in this section under control number 2900-
    0091.)
    
        Authority: 38 U.S.C. 101, 501, 1701, 1705, 1710, 1721, 1722.
    
        4. A new Sec. 17.37 is added to read as follows:
    
    
    Sec. 17.37 Enrollment not required--provision of hospital and 
    outpatient care to veterans.
    
        Even if not enrolled in the VA healthcare system:
        (a) A veteran rated for service-connected disabilities at 50 
    percent or greater will receive VA hospital and outpatient care 
    provided for in the ``medical benefits package'' set forth in 
    Sec. 17.38.
        (b) A veteran who has a service-connected disability will receive 
    VA hospital and outpatient care provided for in the ``medical benefits 
    package'' set forth in Sec. 17.38 for that service-connected 
    disability.
        (c) A veteran who was discharged or released from active military 
    service for a disability incurred or aggravated in the line of duty 
    will receive VA hospital and outpatient care provided for in the 
    ``medical benefits package'' set forth in Sec. 17.38 for that 
    disability for the 12-month period following discharge or release.
        (d) When there is a compelling medical need to complete a course of 
    VA treatment started when the veteran was enrolled in the VA healthcare 
    system, a veteran will receive that treatment.
        (e) Subject to the provisions of Sec. 21.240, a veteran 
    participating in VA's vocational rehabilitation program described in 
    Secs. 21.1 through 21.430 will receive VA hospital and outpatient care 
    provided for in the ``medical benefits package'' set forth in 
    Sec. 17.38.
        (f) A veteran may receive VA hospital and outpatient care based on 
    factors other than veteran status (e.g., a veteran who is a private-
    hospital patient and is referred to VA for a diagnostic test by that 
    hospital under a sharing contract; a veteran who is a VA employee and 
    is examined to determine physical or mental fitness to perform official 
    duties; a Department of Defense retiree under a sharing agreement).
        (g) For care not provided within a State, a veteran may receive VA 
    hospital and outpatient care provided for in the ``medical benefits 
    package'' set forth in Sec. 17.38 if authorized under the provisions of 
    38 U.S.C. 1724 and 38 CFR 17.35.
        (h) Commonwealth Army veterans and new Philippine Scouts may 
    receive hospital and outpatient care provided for in the ``medical 
    benefits package'' set forth in Sec. 17.38 if authorized under the 
    provisions of 38 U.S.C. 1724 and 38 CFR 17.35.
        (i) A veteran may receive certain types of VA hospital and 
    outpatient care not included in the ``medical benefits package'' set 
    forth in Sec. 17.38 if authorized by statute or other sections of 38 
    CFR (e.g., humanitarian emergency care for which the individual will be 
    billed, compensation and pension examinations, dental care, domiciliary 
    care, nursing home care, readjustment counseling, care as part of a VA-
    approved research project, seeing-eye or guide dogs, sexual trauma 
    counseling and treatment, special registry examinations).
        (j) A veteran may receive an examination to determine whether the 
    veteran is catastrophically disabled and therefore eligible for 
    inclusion in priority category 4.
    
        Authority: 38 U.S.C. 101, 501, 1701, 1705, 1710, 1721, 1722.
    
        5. A new Sec. 17.38 is added to read as follows:
    
    
    Sec. 17.38 Medical benefits package.
    
        (a) Subject to paragraphs (b) and (c) of this section, the 
    following hospital and outpatient care constitutes the ``medical 
    benefits package'' (basic care and preventive care):
        (1) Basic care.
        (i) Outpatient medical, surgical, and mental healthcare, including 
    care for substance abuse.
        (ii) Inpatient hospital, medical, surgical, and mental healthcare, 
    including care for substance abuse.
        (iii) Prescription drugs, including over-the-counter drugs and 
    medical and surgical supplies available under the VA national formulary 
    system.
        (iv) Emergency care in VA facilities; and emergency care in non-VA 
    facilities in accordance with sharing contracts or if authorized by 
    Secs. 17.52(a)(3), 17.53, 17.54, 17.120-132.
        (v) Bereavement counseling as authorized in Sec. 17.98.
        (vi) Comprehensive rehabilitative services other than vocational 
    services provided under 38 U.S.C. chapter 31.
        (vii) Consultation, professional counseling, training, and mental 
    health services for the members of the immediate family or legal 
    guardian of the veteran or the individual in whose household the 
    veteran certifies an intention to live, if needed to treat:
        (A) The service-connected disability of a veteran; or
        (B) The nonservice-connected disability of a veteran where these 
    services were first given during the veteran's hospitalization and 
    continuing them is essential to permit the veteran's release from 
    inpatient care.
        (viii) Durable medical equipment and prosthetic and orthotic 
    devices, including eyeglasses and hearing aids as authorized under 
    Sec. 17.149.
        (ix) Home health services authorized under 38 U.S.C. 1717 and 
    1720C.
        (x) Reconstructive (plastic) surgery required as a result of 
    disease or trauma, but not including cosmetic surgery that is not 
    medically necessary.
        (xi) Respite, hospice, and palliative care.
        (xii) Payment of travel and travel expenses for veterans eligible 
    under Sec. 17.143 if authorized by that section.
        (xiii) Pregnancy and delivery services, to the extent authorized by 
    law.
        (xiv) Completion of forms (e.g., Family Medical Leave forms, life 
    insurance applications, Department of Education forms for loan 
    repayment exemptions based on disability, non-VA disability program 
    forms) by healthcare professionals based on an examination or knowledge 
    of the veteran's condition, but not including the completion of forms 
    for examinations if a third party customarily will pay health care 
    practitioners for the examination but will not pay VA.
        (2) Preventive care, as defined in 38 U.S.C. 1701(9), which 
    includes:
        (i) Periodic medical exams.
        (ii) Health education, including nutrition education.
        (iii) Maintenance of drug-use profiles, drug monitoring, and drug 
    use education.
        (iv) Mental health and substance abuse preventive services.
        (v) Immunizations against infectious disease.
        (vi) Prevention of musculoskeletal deformity or other gradually 
    developing disabilities of a metabolic or degenerative nature.
        (vii) Genetic counseling concerning inheritance of genetically 
    determined diseases.
        (viii) Routine vision testing and eye-care services.
        (ix) Periodic reexamination of members of high-risk groups for 
    selected diseases and for functional decline of sensory organs, and the 
    services to treat these diseases and functional declines.
        (b) Provision of the ``medical benefits package''. Care referred to 
    in the ``medical benefits package'' will be provided to individuals 
    only if it is determined by appropriate healthcare professionals that 
    the care is needed to promote, preserve, or restore the health of the 
    individual and is in accord with generally accepted standards of 
    medical practice.
    
    [[Page 54218]]
    
        (1) Promote health. Care is deemed to promote health if the care 
    will enhance the quality of life or daily functional level of the 
    veteran, identify a predisposition for development of a condition or 
    early onset of disease which can be partly or totally ameliorated by 
    monitoring or early diagnosis and treatment, and prevent future 
    disease.
        (2) Preserve health. Care is deemed to preserve health if the care 
    will maintain the current quality of life or daily functional level of 
    the veteran, prevent the progression of disease, cure disease, or 
    extend life span.
        (3) Restoring health. Care is deemed to restore health if the care 
    will restore the quality of life or daily functional level that has 
    been lost due to illness or injury.
        (c) In addition to the care specifically excluded from the 
    ``medical benefits package'' under paragraphs (a) and (b) of this 
    section, the ``medical benefits package'' does not include the 
    following:
        (1) Abortions and abortion counseling.
        (2) In vitro fertilization.
        (3) Drugs, biologicals, and medical devices not approved by the 
    Food and Drug Administration unless the treating medical facility is 
    conducting formal clinical trials under an Investigational Device 
    Exemption (IDE) or an Investigational New Drug (IND) application, or 
    the drugs, biologicals, or medical devices are prescribed under a 
    compassionate use exemption.
        (4) Gender alterations.
        (5) Hospital and outpatient care for a veteran who is either a 
    patient or inmate in an institution of another government agency if 
    that agency has a duty to give the care or services.
        (6) Membership in spas and health clubs.
    
        Authority: 38 U.S.C. 101, 501, 1701, 1705, 1710, 1721, 1722.
    
    
    Sec. 17.43  [Amended]
    
        6. In Sec. 17.43, paragraph (a) is removed and paragraphs (b) 
    through (e) are redesignated as paragraphs (a) through (d), 
    respectively.
    
    
    Sec. 17.47 [Amended]
    
        7. In Sec. 17.47, paragraph (h) is removed; paragraphs (i) through 
    (l) are redesignated as paragraphs (h) through (k), respectively; and 
    newly redesignated paragraph (h) is amended by removing ``hospital or'' 
    and by removing ``or hospital care in a Federal hospital under 
    agreement,''.
    
    
    Sec. 17.93  [Amended]
    
        8. In Sec. 17.93, paragraph (a)(2) is amended by removing ``Medical 
    services'' and adding, in its place, ``Subject to the provisions of 
    Secs. 17.36 through 17.38, medical services''.
    
    
    Sec. 17.99  [Removed]
    
        9. Section 17.99 is removed.
    
    
    Sec. 17.100  [Amended]
    
        10. In Sec. 17.100, the third sentence is amended by removing ``a 
    new application is filed, and''.
    
    [FR Doc. 99-25871 Filed 10-5-99; 8:45 am]
    BILLING CODE 8320-01-P
    
    
    

Document Information

Published:
10/06/1999
Department:
Veterans Affairs Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-25871
Pages:
54207-54218 (12 pages)
RINs:
2900-AJI8
PDF File:
99-25871.pdf
CFR: (15)
38 CFR 17.36(c)(2)
38 CFR 17.36(d)(1)
38 CFR 17.36(d)(4)(i)
38 CFR 17.36(e)
38 CFR 17.36(f)
More ...