98-28140. Civilian Health and Medical Program of the Uniformed Services (CHAMPUS); TRICARE Prime Balance Billing  

  • [Federal Register Volume 63, Number 203 (Wednesday, October 21, 1998)]
    [Rules and Regulations]
    [Pages 56081-56082]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-28140]
    
    
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    DEPARTMENT OF DEFENSE
    
    Office of the Secretary
    
    32 CFR Part 199
    
    RIN 0720-AA46
    
    
    Civilian Health and Medical Program of the Uniformed Services 
    (CHAMPUS); TRICARE Prime Balance Billing
    
    AGENCY: Office of the Secretary, DoD.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule establishes financial protections for TRICARE 
    Prime enrollees in limited circumstances when they receive covered 
    services from a non-network provider.
    
    DATES: This rule is effective March 16, 1998.
    
    ADDRESSES: TRICARE Management Activity, Program Development Branch, 
    Aurora, CO 80045-6900.
    
    FOR FURTHER INFORMATION CONTACT:
    Kathleen Larkin, Office of the Assistant Secretary of Defense (Health 
    Affairs)/TRICARE Management Activity, telephone (703) 681-1745.
        Questions regarding payment of specific claims under the CHAMPUS 
    allowable charge method should be addressed to the appropriate TRICARE/
    CHAMPUS contractor.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Overview of the Rule
    
        This final rule implements section 731 of the FY 1996 National 
    Defense Authorization Act and section 711 of the FY 1997 National 
    Defense Authorization Act which modified 10 U.S.C. 1079(h) to provide 
    protections for TRICARE Prime enrollees from balance billing situations 
    in limited circumstances. Balance billing can otherwise occur when a 
    provider bills a TRICARE Prime enrollee an actual charge in excess of 
    the allowable amount. Each regional TRICARE managed care support 
    contractor is required to establish a network of civilian providers in 
    areas where TRICARE Prime (the enrollment option) is offered. As is 
    standard for Health Maintenance Organizations, enrollees in TRICARE 
    Prime receive care from network providers. But on occasion, such as 
    when a network provider is not available and they are referred to a 
    non-network provider, or in emergencies, they may receive covered 
    services from non-network providers. This rule provides protection in 
    these situations; TRICARE Prime enrollees will be responsible for their 
    copayments, but not for balance billing by non-participating providers.
        Public Comments. The interim final rule was published in the 
    Federal Register on February 13, 1998. We received one comment letter. 
    We thank the commenter who approved of the Department's steps taken to 
    further protect TRICARE Prime beneficiaries from the uncertainties of 
    balance billing by non-network providers. The commenter also suggested 
    that we more clearly define balance billing protections for ``out-of-
    network referrals'' and more specifically state our definition of 
    ``providers'' with respect to references to non-participating 
    providers.
        Response. The rule is designed to limit TRICARE Prime beneficiary 
    liability when properly referred by the primary care manager or Health 
    Care Finder for authorized care outside of the TRICARE network in 
    limited instances where there is a lack of network providers, or there 
    is a mistaken referral to an out-of-network provider. Emergency care 
    requires no prior authorization; however, balance billing protections 
    also apply to TRICARE Prime beneficiaries who receive care in an 
    emergency setting from non-network providers. With respect to the 
    request to further define the term ``providers,'' the definition is 
    contained in 199.2 of this part and is generally considered to be a 
    hospital, or other institutional provider, a physician, or other 
    individual professional provider, or other provider of services or 
    supplies.
        Provisions of Final Rule. The final rule is consistent with the 
    interim final rule.
    
    II. Rulemaking Procedures
    
        Executive Order 12866 requires certain regulatory assessments for 
    any significant regulatory action, defined as one which would result in 
    an annual effect on the economy of $100 million or more, or have other 
    substantial impacts.
        The Regulatory Flexibility Act (RFA) requires that each Federal 
    agency prepare, and make available for public comment, a regulatory 
    flexibility analysis when the agency issues a regulation which would 
    have a
    
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    significant impact on a substantial number of small entities.
        This is not a significant regulatory action under the provisions of 
    Executive Order 12866, and it would not have a significant impact on a 
    substantial number of small entities.
        The final rule will not impose additional information collection 
    requirements on the public under the Paperwork Reduction Act of 1995 
    (44 U.S.C. Chapter 35).
    
    PART 199--[AMENDED]
    
        1. The authority citation for Part 199 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 301; 10 U.S.C. chapter 55.
    
        2. Section 199.14 is amended by adding paragraph (h)(1)(i)(D) to 
    read as follows:
    
    
    Sec. 199.14  Provider reimbursement methods.
    
    * * * * *
        (h) Reimbursement of Individual Health Care Professionals and Other 
    Non-Institutional Health Care Providers. * * *
        (1) Allowable charge method. * * *
        (i) Introduction. * * *
        (D) Special rule for TRICARE Prime Enrollees. In the case of a 
    TRICARE Prime enrollee (see section 199.17) who receives authorized 
    care from a non-participating provider, the CHAMPUS determined 
    reasonable charge will be the CMAC level as established in paragraph 
    (h)(1)(i)(B) of this section plus any balance billing amount up to the 
    balance billing limit as referred to in paragraph (h)(1)(i)(C) of this 
    section. The authorization for such care shall be pursuant to the 
    procedures established by the Director, OCHAMPUS (also referred to as 
    the TRICARE Support Office).
    * * * * *
        Dated: October 15, 1998.
    L.M. Bynum,
    Alternate Federal Register Liaison Officer, Department of Defense.
    [FR Doc. 98-28140 Filed 10-20-98; 8:45 am]
    BILLING CODE 5000-04-M
    
    
    

Document Information

Effective Date:
3/16/1998
Published:
10/21/1998
Department:
Defense Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
98-28140
Dates:
This rule is effective March 16, 1998.
Pages:
56081-56082 (2 pages)
RINs:
0720-AA46: Civilian Health and Medical Program of the Uniformed Services (CHAMPUS); TRICARE Prime Balance Billing
RIN Links:
https://www.federalregister.gov/regulations/0720-AA46/civilian-health-and-medical-program-of-the-uniformed-services-champus-tricare-prime-balance-billing
PDF File:
98-28140.pdf
CFR: (1)
32 CFR 199.14