96-27668. Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA)  

  • [Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
    [Proposed Rules]
    [Pages 56486-56491]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-27668]
    
    
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    DEPARTMENT OF VETERANS AFFAIRS
    
    38 CFR Part 17
    
    RIN 2900-AE64
    
    
    Civilian Health and Medical Program of the Department of Veterans 
    Affairs (CHAMPVA)
    
    AGENCY: Department of Veterans Affairs.
    
    ACTION: Proposed rule.
    
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    SUMMARY: This document proposes to amend regulations concerning medical 
    care for survivors and dependents of certain veterans, hereinafter 
    referred to as the Civilian Health and Medical Program of the 
    Department of Veterans Affairs (CHAMPVA). These proposed regulations 
    would establish basic policies and procedures governing the
    
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    administration of the CHAMPVA program, including CHAMPVA claims 
    processing procedures and a description of benefits and services.
    
    DATES: Comments must be received on or before December 31, 1996.
    
    ADDRESSES: Mail or hand deliver written comments to: Director, Office 
    of Regulations Management (02D), Department of Veterans Affairs, 810 
    Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should 
    indicate that they are submitted in response to ``RIN 2900-AE64.'' All 
    written comments will be available for public inspection at the above 
    address in the Office of Regulations Management, Room 1158, between the 
    hours of 8:00 a.m. and 4:30 p.m., Monday through Friday (except 
    holidays).
    
    FOR FURTHER INFORMATION CONTACT: Susan Schmetzer, Health Administration 
    Center (formerly CHAMPVA Center), P.O. Box 65023, Denver, CO 80206-
    5023, at (303) 331-7552. (This is not a toll-free number).
    
    SUPPLEMENTARY INFORMATION: The provisions of 38 U.S.C. 1713 authorize 
    VA to provide medical care to the dependents and survivors of certain 
    veterans ``in the same or similar manner and subject to the same or 
    similar limitations'' as medical care is furnished by the Department of 
    Defense (DoD) to certain dependents and survivors of active duty and 
    retired members of the Armed Forces under 10 United States Code, 
    Chapter 55, Civilian Health and Medical Program of the Uniformed 
    Services (CHAMPUS). This document proposes to amend VA regulations to 
    include CHAMPVA claims processing procedures.
        It is also noted that during the past several years VA has made 
    changes with respect to CHAMPVA claims processing services. Previously, 
    VA had an agreement with DoD to contract with commercial claims 
    processors (fiscal intermediaries) for the processing of VA claims. 
    However, in an effort to both contain costs and to improve services to 
    the beneficiaries, VA now conducts its own claims processing services 
    and has consolidated the operations in Denver, Colorado.
        The Secretary hereby certifies that these regulatory amendments 
    would 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. Sec. 601-612. These amendments would not cause significant 
    economic impact on health care providers, suppliers, or entities since 
    only a small portion of their business concerns CHAMPVA beneficiaries. 
    The proposed rule would mostly impact individuals who are VA 
    beneficiaries. Pursuant to 5 U.S.C. 605(b), these amendments are exempt 
    from the initial and final regulatory flexibility analyses requirements 
    of sections 603 and 604.
    
        The Catalog of Federal Domestic Assistance Program numbers are 
    64.009, 64.010, 64.011.
    
    Lists of Subjects in 38 CFR Part 17
    
        Alcoholism, Claims, Dental services, Drug abuse, Foreign relations, 
    Government contracts, Grant programs-Health, Health care, Health 
    facilities, Health professions, Medical devices, Medical research, 
    Mental health programs, Nursing home care, Philippines, Veterans.
    
        Approved
    Jesse Brown,
    Secretary of Veterans Affairs.
    
        For the reasons set out in the preamble, 38 CFR part 17 is proposed 
    to be 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.
    
        2. Section 17.84 is removed.
        3. A new center heading consisting of Secs. 17.270-17.278 is added 
    to read as follows:
    
    Civilian Health and Medical Program of the Department of Veterans 
    Affairs (CHAMPVA)--Medical Care for Survivors and Dependents of Certain 
    Veterans
    
    Sec.
    17.270  General Provisions
    17.271  Eligibility
    17.272  Benefit Limitations/Exclusions
    17.273  Preauthorization
    17.274  Cost Sharing
    17.275  Claim Filing Deadline
    17.276  Appeal/Review Process
    17.277  Third Party Liability/Medical Care Cost Recovery
    17.278  Confidentiality of Records
    
    
    Sec. 17.270  General Provisions.
    
        (a) CHAMPVA is the Civilian Health and Medical Program of the 
    Department of Veterans Affairs. Pursuant to 38 U.S.C. 1713, VA is 
    authorized to provide medical care in the same or similar manner and 
    subject to the same or similar limitations as medical care furnished to 
    certain dependents and survivors of active duty and retired members of 
    the Armed Forces. The CHAMPVA program is designed to accomplish this 
    purpose. Under CHAMPVA, VA shares the cost of medically necessary 
    services and supplies for eligible beneficiaries as set forth below.
        (b) For purposes of this section, the definitions of ``child,'' 
    ``service-connected condition/disability,'' ``spouse,'' and ``surviving 
    spouse'' shall be those set forth further in 38 U.S.C. 101. The term 
    ``fiscal'' year refers to October 1, through September 30.
    
    (Authority: 38 U.S.C. 1713)
    
    
    Sec. 17.271  Eligibility.
    
        (a) The following persons are eligible for CHAMPVA benefits 
    provided that they are not eligible for CHAMPUS or Medicare Part A 
    (except as noted in 17.271).
        (1) The spouse or child of a veteran who has been adjudicated by VA 
    as having a permanent and total service-connected disability;
        (2) The surviving spouse or child of a veteran who died as a result 
    of an adjudicated service-connected condition(s); or who, at the time 
    of death, was adjudicated permanently and totally disabled from a 
    service-connected condition(s);
        (3) The surviving spouse or child of a person who died on active 
    military service and in the line of duty and not due to such person's 
    own misconduct; and
        (4) An eligible child who is pursuing a full-time course of 
    instruction approved under 38 U.S.C. Chapter 36, and who incurs a 
    disabling illness or injury while pursuing such course (between terms, 
    semesters or quarters; or during a vacation or holiday period) which is 
    not the result of his or her own willful misconduct and which results 
    in the inability to continue or resume the chosen program of education 
    shall remain eligible for medical care until:
        (i) the end of the six-month period beginning on the date the 
    disability is removed; or
        (ii) the end of the two-year period beginning on the date of the 
    onset of the disability; or
        (iii) the twenty-third birthday of the child, whichever occurs 
    first.
    
    (Authority: 38 U.S.C. 1713)
    
        (b) Persons who lose eligibility for CHAMPVA by becoming 
    potentially eligible for Medicare Part A as a result of reaching age 65 
    or who qualify for Medicare Part A benefits on the basis of a 
    disability, including end stage renal disease, may re-establish CHAMPVA 
    eligibility by submitting documentation from the Social Security 
    Administration (SSA) certifying their non-entitlement to or exhaustion 
    of Medicare Part A benefits. Persons under age 65 who are enrolled in 
    both Medicare Part A and B
    
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    may become potentially eligible for CHAMPVA as a secondary payer to 
    Medicare. In cases where CHAMPVA eligibility is restored upon 
    exhaustion of Medicare benefits, CHAMPVA coverage will extend even 
    during subsequent periods of Medicare eligibility. When both CHAMPVA 
    and Medicare eligibility exist, CHAMPVA shall be the secondary payer.
    
    (Authority: 38 U.S.C. 1713(d))
    
    
    Sec. 17.272  Benefits Limitations/Exclusions.
    
        (a) Benefits cover allowable expenses for medical services and 
    supplies that are medically necessary and appropriate for the treatment 
    of a condition and that are not specifically excluded from program 
    coverage. Covered benefits may have limitations. The fact that a 
    physician may prescribe, order, recommend, or approve a service or 
    supply does not, of itself, make it medically necessary or make the 
    charge an allowable expense, even though it is not listed specifically 
    as an exclusion. The following are specifically excluded from program 
    coverage:
        (1) Services, procedures or supplies for which the beneficiary has 
    no legal obligation to pay, or for which no charge would be made in the 
    absence of coverage under a health benefits plan.
        (2) Services and supplies required as a result of an occupational 
    disease or injury for which benefits are payable under workers' 
    compensation or similar protection plan (whether or not such benefits 
    have been applied for or paid) except when such benefits are exhausted 
    and are otherwise not excluded from CHAMPVA coverage.
        (3) Services and supplies that are paid directly or indirectly by a 
    local, state or Federal government agency (Medicaid excluded), 
    including court-ordered treatment.
        (4) Services and supplies that are not medically or psychologically 
    necessary for the diagnosis or treatment of a covered condition 
    (including mental disorder) or injury.
        (5) Radiology, laboratory, and pathological services and machine 
    diagnostic testing not related to a specific illness or injury or a 
    definitive set of symptoms.
        (6) Services and supplies above the appropriate level required to 
    provide necessary medical care.
        (7) Services and supplies related to an inpatient admission 
    primarily to perform diagnostic tests, examinations, and procedures 
    that could have been and are performed routinely on an outpatient 
    basis.
        (8) Postpartum inpatient stay of a mother for purposes of staying 
    with the newborn infant (primarily for the purpose of breast feeding 
    the infant) when the infant (but not the mother) requires the extended 
    stay; or continued inpatient stay of a newborn infant primarily for 
    purposes of remaining with the mother when the mother (but not the 
    newborn infant) requires extended postpartum inpatient stay.
        (9) Therapeutic absences from an inpatient facility or residential 
    treatment center (RTC).
        (10) Custodial care.
        (11) Inpatient stays primarily for domiciliary care purposes.
        (12) Inpatient stays primarily for rest or rest cures.
        (13) Services and supplies provided as a part of, or under, a 
    scientific or medical study, grant, or research program.
        (14) Services and supplies not provided in accordance with accepted 
    professional medical standards or related to experimental or 
    investigational procedures or treatment regimens.
        (15) Services or supplies prescribed or provided by a member of the 
    beneficiary's immediate family, or a person living in the beneficiary's 
    or sponsor's household.
        (16) Services and supplies that are (or are eligible to be) payable 
    under another medical insurance or program, either private or 
    governmental, such as coverage through employment or Medicare.
        (17) Service or supplies subject to preauthorization (see 
    Sec. 17.273) which were obtained without the required preauthorization; 
    and services and supplies which were not provided according to the 
    terms of the preauthorization.
        (18) Inpatient stays primarily to control or detain a runaway 
    child, whether or not admission is to an authorized institution.
        (19) Services and supplies in connection with cosmetic surgery.
        (20) Electrolysis.
        (21) Dental care with the following exceptions:
        (i) Dental care that is medically necessary in the treatment of an 
    otherwise covered medical condition is an integral part of the 
    treatment of such medical condition, and is essential to the control of 
    the primary medical condition.
        (ii) Dental care required in preparation for, or as a result of, 
    radiation therapy for oral or facial cancer.
        (iii) Gingival Hyperplasia.
        (iv) Loss of jaw substance due to direct trauma to the jaw or due 
    to treatment of neoplasm.
        (v) Intraoral abscess when it extends beyond the dental alveolus.
        (vi) Extraoral abscess.
        (vii) Cellulitis and osteitis which is clearly exacerbating and 
    directly affecting a medical condition currently under treatment.
        (viii) Repair of fracture, dislocation, and other injuries of the 
    jaw, to include removal of teeth and tooth fragments only when such 
    removal is incidental to the repair of the jaw.
        (ix) Treatment for stabilization of myofascial pain dysfunction 
    syndrome, also referred to as temporomandibular joint (TMJ) syndrome. 
    Authorization is limited to initial radiographs, up to four office 
    visits, and the construction of an occlusal splint.
        (x) Total or complete ankyloglossia.
        (xi) Adjunctive dental and orthodontic support for cleft palate.
        (xii) Prosthetic replacement of jaw due to trauma or cancer.
        (22) Nonsurgical treatment of obesity or morbid obesity for dietary 
    control or weight reduction (with the exception of gastric bypass, 
    gastric stapling, or gastroplasty procedures in connection with morbid 
    obesity when determined to be medically necessary).
        (23) Services and supplies related to transsexualism or other 
    similar conditions such as gender dysphoria (including, but not limited 
    to, intersex surgery and psychotherapy, except for ambiguous genitalia 
    which was documented to be present at birth).
        (24) Sex therapy, sexual advice, sexual counseling, sex behavior 
    modification, psychotherapy for mental disorders involving sexual 
    deviations (e.g., transvestic fetish), or other similar services, and 
    any supplies provided in connection with therapy for sexual 
    dysfunctions or inadequacies.
        (25) Removal of corns or calluses or trimming of toenails and other 
    routine podiatry services, except those required as a result of a 
    diagnosed systemic medical disease affecting the lower limbs, such as 
    severe diabetes.
        (26) Services and supplies, to include psychological testing, 
    provided in connection with a specific developmental disorder. The 
    following exception applies: Diagnostic and evaluative services 
    required to arrive at a differential diagnosis for an otherwise 
    eligible child unless the state is required to provide those services 
    under Public Law 94-142, Education for All Handicapped Children Act of 
    1975 as amended, See 20 U.S.C. Chapter 33.
        (27) Surgery to reverse voluntary surgical sterilization 
    procedures.
        (28) Services and supplies related to artificial insemination 
    (including semen donors and semen banks), in vitro fertilization, 
    gamete intrafallopian
    
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    transfer and all other noncoital reproductive technologies.
        (29) Nonprescription contraceptives.
        (30) Diagnostic tests to establish paternity of a child; or tests 
    to determine sex of an unborn child.
        (31) Preventive care (such as routine, annual, or employment-
    requested physical examinations; routine screening procedures; and 
    immunizations). The following exceptions apply:
        (i) Well-baby care from birth to the age of two years, including 
    newborn examination, phenylketonuria (PKU) testing and newborn 
    circumcision.
        (ii) Rabies vaccine following an animal bite.
        (iii) Tetanus vaccine following an accidental injury.
        (iv) Rh immune globulin.
        (v) Pap smears.
        (vi) Mammography tests.
        (vii) Genetic testing and counseling determined to be medically 
    necessary.
        (viii) Chromosome analysis in cases of habitual abortion or 
    infertility.
        (ix) Gamma globulin.
        (32) Chiropractic and naturopathic services.
        (33) Counseling services that are not medically necessary in the 
    treatment of a diagnosed medical condition (such as educational 
    counseling; vocational counseling; and counseling for socioeconomic 
    purposes, stress management, life style modification, etc.).
        (34) Acupuncture, whether used as a therapeutic agent or as an 
    anesthetic.
        (35) Hair transplants, wigs, or hairpieces, except that benefits 
    may be extended for one wig or hairpiece per beneficiary (lifetime 
    maximum) when the attending physician certifies that alopecia has 
    resulted from treatment of malignant disease and the beneficiary 
    certifies that a wig or hairpiece has not been obtained previously 
    through the U.S. Government (including the Department of Veterans 
    Affairs). The wig or hairpiece benefit does not include coverage for 
    the following:
        (i) Maintenance, wig or hairpiece supplies, or replacement of the 
    wig or hairpiece.
        (ii) Hair transplant or any other surgical procedure involving the 
    attachment of hair or a wig or hairpiece to the scalp.
        (iii) Any diagnostic or therapeutic method or supply intended to 
    encourage hair growth.
        (36) Self-help, academic education or vocational training services 
    and supplies.
        (37) Exercise equipment, spas, whirlpools, hot tubs, swimming 
    pools, health club membership or other such charges or items.
        (38) General exercise programs, even if recommended by a physician.
        (39) Services of an audiologist or speech therapist, except when 
    prescribed by a physician and rendered as a part of treatment addressed 
    to the physical defect itself and not to any educational or 
    occupational deficit.
        (40) Eye exercises or visual training (orthoptics).
        (41) Eye and hearing examinations except when rendered in 
    connection with medical or surgical treatment of a covered illness or 
    injury or in connection with well-baby care.
        (42) Eyeglasses, spectacles, contact lenses, or other optical 
    devices with the following exceptions:
        (i) When necessary to perform the function of the human lens, lost 
    as a result of intraocular surgery, ocular injury or congenital 
    absence.
        (ii) Pinhole glasses prescribed for use after surgery for detached 
    retina.
        (iii) Lenses prescribed as ``treatment'' instead or surgery for the 
    following conditions:
        (A) Contact lenses used for treatment of infantile glaucoma.
        (B) Corneal or scleral lenses prescribed in connection with 
    treatment of keratoconus.
        (C) Scleral lenses prescribed to retain moisture when normal 
    tearing is not present or is inadequate.
        (D) Corneal or scleral lenses prescribed to reduce a corneal 
    irregularity other than astigmatism.
        (iv) The specified benefits are limited to one set of lenses 
    related to one qualifying eye condition as set forth in (iii)(A-D) of 
    this Section. If there is a prescription change requiring a new set of 
    lenses, but still related to the qualifying eye condition, benefits may 
    be extended for a second set of lenses, subject to medical review.
        (43) Hearing aids or other auditory sensory enhancing devices.
        (44) Prostheses with the following exceptions:
        (i) Artificial limbs and eyes, or items inserted surgically in the 
    body as an integral part of a surgical procedure.
        (ii) Dental prostheses specifically required in connection with 
    otherwise covered orthodontia directly related to the surgical 
    correction of a cleft palate anomaly.
        (45) Orthopedic shoes, arch supports, shoe inserts, and other 
    supportive devices for the feet, including custom-made built-up shoes, 
    or regular shoes later built up with the following exception: Shoes 
    that are an integral part of an orthopedic brace and which cannot be 
    used separately from the brace are covered.
        (46) Services or advice rendered by telephone or other telephonic 
    device, including remote monitoring, except for transtelephonic 
    monitoring of cardiac pacemakers.
        (47) Air conditioners, humidifiers, dehumidifiers, and purifiers.
        (48) Elevators or wheelchair lifts.
        (49) Alterations to living spaces or permanent features attached 
    thereto, even when necessary to accommodate installation of covered 
    durable medical equipment or to facilitate entrance or exit.
        (50) Items of clothing, even if required by virtue of an allergy 
    (such as cotton fabric versus synthetic fabric and vegetable-dyed 
    shoes).
        (51) Food, food substitutes, vitamins or other nutritional 
    supplements, including those related to prenatal care for a home 
    patient whose condition permits oral feeding.
        (52) Enuretic (bed-wetting) devices; enuretic conditioning 
    programs.
        (53) Autopsy and post-mortem examinations.
        (54) All camping, even when organized for a specific therapeutic 
    purpose (such as diabetic camp or a camp for emotionally disturbed 
    children), or when offered as a part of an otherwise covered treatment 
    plan.
        (55) Housekeeping, homemaker, or attendant services, including a 
    sitter or companion.
        (56) Personal comfort or convenience items, such as beauty and 
    barber services, radio, television, and telephone.
        (57) Smoking cessation services and supplies.
        (58) Megavitamin psychiatric therapy; orthomolecular psychiatric 
    therapy.
        (59) All transportation except for specialized transportation with 
    life sustaining equipment, when medically required for the treatment of 
    a covered condition.
        (60) Inpatient mental health services in excess of 30 days in any 
    fiscal year (or in an admission), in the case of a patient 19 years of 
    age or older; 45 days in any fiscal year (or in an admission), in the 
    case of a patient under 19 years of age; or 150 days of residential 
    treatment care in any fiscal year (or in an admission), unless a waiver 
    for extended coverage is granted in advance.
        (61) Outpatient mental health services in excess of 23 visits in a 
    fiscal year, unless a waiver for extended coverage is granted in 
    advance.
        (62) Institutional services for partial hospitalization in excess 
    of 60 treatment days in any fiscal year (or in an admission), unless a 
    waiver for extended coverage is granted in advance.
    
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        (63) Detoxification in a hospital setting or rehabilitation 
    facility in excess of seven days.
        (64) Outpatient substance abuse services in excess of 60 visits 
    during a benefit period. A benefit period begins with the first date of 
    covered service and ends 365 days later.
        (65) Family therapy for substance abuse in excess of 15 visits 
    during a benefit period. A benefit period begins with the first date of 
    covered service and ends 365 days later.
        (66) Services that are provided to a beneficiary who is referred to 
    a provider of such services by a provider who has an economic interest 
    in the facility to which the patient is referred, unless a waiver is 
    granted.
        (67) Abortion, except when a physician certifies that the life of 
    the mother would be endangered if the fetus were carried to term.
        (68) Abortion counseling.
        (69) Aversion therapy.
        (70) Rental or purchase of biofeedback equipment.
        (71) Biofeedback therapy for treatment of ordinary muscle tension 
    states (including tension headaches) or for psychosomatic conditions.
        (72) Drug maintenance programs where one addictive drug is 
    substituted for another, such as methadone substituted for heroin.
        (73) Immunotherapy for malignant diseases, except for treatment of 
    Stage O and Stage A carcinoma of the bladder.
        (74) Services and supplies provided by other than a hospital, such 
    as nonskilled nursing homes, intermediate care facilities, halfway 
    houses, homes for the aged, or other institutions of similar purpose.
        (75) Services performed when the patient is not physically present.
        (76) Medical photography.
        (77) Special tutoring.
        (78) Surgery for psychological reasons.
        (79) Treatment of premenstrual syndrome (PMS).
        (80) Medications not requiring a prescription, except for insulin.
        (81) Thermography.
        (82) Removal of tattoos.
        (83) Penile implant/testicular prosthesis procedures and related 
    supplies for psychological impotence.
        (84) Dermabrasion of the face.
        (85) Chemical peeling for facial wrinkles.
        (86) Panniculectomy, body sculpting procedures.
        (b) CHAMPVA-determined allowable amount.
        (1) The term allowable amount is the maximum CHAMPVA-determined 
    level of payment to a hospital or other authorized institutional 
    provider, a physician or other authorized individual professional 
    provider, or other authorized provider for covered services. The 
    CHAMPVA-allowable amount is determined prior to cost sharing and the 
    application of deductibles and/or other health insurance.
        (2) A Medicare-participating hospital must accept the CHAMPVA-
    determined allowable amount for inpatient services as payment-in-full. 
    (Reference 42 CFR Parts 489 and 1003).
        (3) An authorized provider of covered medical services or supplies 
    shall accept the CHAMPVA-determined allowable amount as payment-in-
    full.
        (4) A provider who has collected and not made an appropriate 
    refund, or attempts to collect from the beneficiary, any amount in 
    excess of the CHAMPVA-determined allowable amount may be subject to 
    exclusion from Federal benefit programs.
    
    (Authority: 38 U.S.C. 1713)
    
    
    Sec. 17.273  Preauthorization.
    
        (a) Preauthorization or advance approval is required for any of the 
    following:
        (1) Non-emergent inpatient mental health and substance abuse care, 
    including admission of emotionally disturbed children and adolescents 
    to residential treatment centers.
        (2) All admissions to a partial hospitalization program (including 
    alcohol rehabilitation).
        (3) Outpatient mental health visits in excess of 23 per calendar 
    year and/or more than two (2) sessions per week.
        (4) Dental care.
        (5) Durable medical equipment with a purchase price in excess of 
    $300.00.
        (6) Organ transplants.
    
    (Authority: 38 U.S.C. 1713)
    
    
    Sec. 17.274  Cost sharing.
    
        (a) With the exception of services obtained directly from VA 
    medical facilities, CHAMPVA is a cost-sharing program in which the cost 
    of covered services is shared with the beneficiary. In addition to the 
    beneficiary cost share, an annual (calendar year) outpatient deductible 
    requirement ($50 per beneficiary or $100 per family) must be satisfied 
    prior to the payment of outpatient benefits. There is no deductible for 
    inpatient services. CHAMPVA pays the CHAMPVA-determined allowable 
    amount less the deductible, if applicable, and less the beneficiary 
    cost share. To provide financial protection against the impact of a 
    long-term illness or injury, an annual cost limit or ``catastrophic 
    cap'' has been placed on the beneficiary cost-share amount for covered 
    services and supplies. This annual cap on cost sharing is $7,500 per 
    CHAMPVA-eligible family. Credits to the annual catastrophic cap are 
    limited to the applied annual deductible(s) and the beneficiary cost-
    share amount. Costs above the CHAMPVA-allowable amount, as well as 
    costs associated with noncovered services, are not credited to the 
    catastrophic cap computation.
        (b) If the CHAMPVA benefit payment is under $1.00, payment will not 
    be issued. Catastrophic cap and deductible will, however, be credited.
    
    (Authority: 38 U.S.C. 1713)
    
    
    Sec. 17.275  Claim filing deadline.
    
        (a) Unless an exception is granted under paragraph (b) of this 
    subsection, claims for medical services and supplies must be filed with 
    the Center no later than:
        (1) One year after the date of service; or
        (2) In the case of inpatient care, one year after the date of 
    discharge; or
        (3) In the case of retroactive approval for medical services/
    supplies, 180 days following beneficiary notification of authorization; 
    or
        (4) In the case of retroactive approval of CHAMPVA eligibility, 180 
    days following notification to the beneficiary of authorization for 
    services occurring on or after the date of first eligibility.
        (b) Requests for an exception to the claim filing deadline must be 
    submitted, in writing, to the Center and include a complete explanation 
    of the circumstances resulting in late filing along with all available 
    supporting documentation. Each request for an exception to the claim 
    filing deadline will be reviewed individually and considered on its own 
    merit. The Center Director may grant exceptions to the requirements in 
    paragraph (a) if he or she determines that there was good cause for 
    missing the filing deadline. For example, when dual coverage exists, 
    the CHAMPVA allowable amount cannot be determined until after the 
    primary insurance carrier has adjudicated the claim. In such 
    circumstances an exception may be granted provided that the delay on 
    the part of the primary insurance carrier is not attributable to the 
    beneficiary. Delays due to provider billing procedures do not 
    constitute a valid basis for an exception.
    
    
    Sec. 17.276  Appeal/review process.
    
        Notice of the initial determination regarding payment of CHAMPVA 
    benefits will be provided to the beneficiary on a CHAMPVA
    
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    Explanation of Benefits (EOB) form. The EOB form is generated by the 
    CHAMPVA automated payment processing system. If a beneficiary disagrees 
    with the determination concerning covered services or calculation of 
    benefits, he or she may request reconsideration. Such requests must be 
    submitted to the Center in writing within one year of the date of the 
    initial determination. The request must state why the beneficiary 
    believes the decision is in error and must include any new and relevant 
    information not previously considered. Any request for reconsideration 
    that does not identify the reason for dispute will be returned to the 
    claimant without further consideration. After reviewing the claim and 
    any relevant supporting documentation, a CHAMPVA benefits advisor will 
    issue a written determination to the beneficiary that affirms, reverses 
    or modifies the previous decision. If the beneficiary is still 
    dissatisfied, within 30 days of the date of the decision he or she may 
    make a written request for review by the Center Director. The Director 
    will review the claim and any relevant supporting documentation and 
    issue a decision in writing that affirms, reverses or modifies the 
    previous decision. The decision of the Director with respect to benefit 
    coverage and computation of benefits is final.
    
    (Authority: 38 U.S.C. 1713)
    
        Note: Denial of CHAMPVA benefits based on legal eligibility 
    requirements may be appealed to the Board of Veterans Appeals in 
    accordance with 38 C.F.R. Part 20. Medical determinations are not 
    appealable to the Board. 20 C.F.R. Sec. 20.101.
    
    
    Sec. 17.277  Third Part Liability/Medicare Cost Recovery.
    
        The Center will actively pursue third party liability/medical care 
    cost recovery in accordance with 38 CFR 1.900, et seq.
    
    
    Sec. 17.278  Confidentiality of records.
    
        Confidentiality of records will be maintained in accordance with 38 
    CFR 1.500, et seq.
    [FR Doc. 96-27668 Filed 10-31-96; 8:45 am]
    BILLING CODE 8320-01-P
    
    
    

Document Information

Published:
11/01/1996
Department:
Veterans Affairs Department
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
96-27668
Dates:
Comments must be received on or before December 31, 1996.
Pages:
56486-56491 (6 pages)
RINs:
2900-AE64: CHAMPVA Regulations
RIN Links:
https://www.federalregister.gov/regulations/2900-AE64/champva-regulations
PDF File:
96-27668.pdf
CFR: (10)
38 CFR 17.273)
38 CFR 17.270
38 CFR 17.271
38 CFR 17.272
38 CFR 17.273
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