99-29392. Medical and Dental Services for Fiscal Year 2000  

  • [Federal Register Volume 64, Number 217 (Wednesday, November 10, 1999)]
    [Notices]
    [Pages 61311-61316]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-29392]
    
    
    
    [[Page 61311]]
    
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    DEPARTMENT OF DEFENSE
    
    Office of the Secretary
    
    
    Medical and Dental Services for Fiscal Year 2000
    
    -----------------------------------------------------------------------
    
    SUMMARY: Notice is hereby given that on September 30, 1999, the Deputy 
    Chief Financial Officer approved the following reimbursement rates for 
    inpatient and outpatient medical care to be provided in FY 2000. These 
    rates are effective October 1, 1999.
    
    Medical and Dental Services for Fiscal Year 2000
    
        The FY 2000 Department of Defense (DoD) reimbursement rates for 
    inpatient, outpatient, and other services are provided in accordance 
    with Title 10, United States Code, Section 1095. Due to size, the 
    sections containing the Drug Reimbursement Rates (Section III.E) and 
    the rates for Ancillary Services Requested by Outside Providers 
    (Section III.F) are not included in this package. The Office of the 
    Assistant Secretary of Defense (Health Affairs) will provide these 
    rates upon request (MAJ Rose Layman, OASD(HA)--Response Management/Tri-
    Care Management Activity, (703) 681-8910 or DSN 761-8910). The medical 
    and dental service rates in this package (including the rates for 
    ancillary services, prescription drugs or other procedures requested by 
    outside providers) are effective October 1, 1999.
    
    Inpatient, Outpatient and Other Rates and Charges
    
    I. Inpatient Rates 1 2
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International
                                                                        Interagency    Interagency &
                                                                         military      other federal   Other (full/
                            Per inpatient day                           education &       agency       third party)
                                                                         training        sponsored
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
    A. Burn Center..................................................       $3,080.00       $5,529.00       $5,840.00
    B. Surgical Care Services (Cosmetic Surgery)....................        1,411.00        2,533.00        2,675.00
    C. All Other Inpatient Services (Based on Diagnosis Related
     Groups (DRG) 3.................................................
    ----------------------------------------------------------------------------------------------------------------
    
    1. FY2000 Direct Care Inpatient Reimbursement Rates
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                                       Other (full/
                             Standard amount                               IMET         Interagency    third party)
    ----------------------------------------------------------------------------------------------------------------
    Large Urban.....................................................       $2,921.00       $5,498.00       $5,775.00
    Other Urban/Rural...............................................        3,236.00        6,532.00        6,883.00
    Overseas........................................................        3,606.00        8,520.00        8,941.00
    ----------------------------------------------------------------------------------------------------------------
    
    2. Overview
        The FY2000 inpatient rates are based on the cost per DRG, which is 
    the inpatient full reimbursement rate per hospital discharge weighted 
    to reflect the intensity of the principal diagnosis, secondary 
    diagnoses, procedures, patient age, etc. involved. The average cost per 
    Relative Weighted Product (RWP) for large urban, other urban/rural, and 
    overseas facilities will be published annually as an inpatient adjusted 
    standardized amount (ASA) (see paragraph I.C.1., above). The ASA will 
    be applied to the RWP for each inpatient case, determined from the DRG 
    weights, outlier thresholds, and payment rules published annually for 
    hospital reimbursement rates under the Civilian Health and Medical 
    Program of the Uniformed Services (CHAMPUS) pursuant to 32 CFR 
    199.14(a)(1), including adjustments for length of stay (LOS) outliers. 
    The published ASAs will be adjusted for area wage differences and 
    indirect medical education (IME) for the discharging hospital. An 
    example of how to apply DoD costs to a DRG standardized weight to 
    arrive at DoD costs is contained in paragraph I.C.3., below.
    3. Example of Adjusted Standardized Amounts for Inpatient Stays
        Figure 1 shows examples for a nonteaching hospital in a Large Urban 
    Area.
        a. The cost to be recovered is DoD's cost for medical services 
    provided in the non-teaching hospital located in a large urban area. 
    Billings will be at the third party rate.
        b. DRG 020: Nervous System Infection Except Viral Meningitis. The 
    RWP for an inlier case is the CHAMPUS weight of 2.3446. (DRG statistics 
    shown are from FY 1998.)
        c. The DoD adjusted standardized amount to be charged is $5,775 
    (i.e., the third party rate as shown in the table).
        d. DoD cost to be recovered at a nonteaching hospital with area 
    wage index of 1.0 is the RWP factor (2.3446) in subparagraph 3.b., 
    above, multiplied by the amount ($5,775) in subparagraph 3.c., above.
        e. Cost to be recovered is $13,540.
    
                                         Figure 1.--Third Party Billing Examples
    ----------------------------------------------------------------------------------------------------------------
                                                               Arithmetic     Geometric    Short stay     Long stay
         DRG No.           DRG description       DRG weight     mean LOS      mean LOS      threshold     threshold
    ----------------------------------------------------------------------------------------------------------------
    020..............  Nervous System                2.3446           8.1           5.7             1            29
                        Infection Except Viral
                        Meningitis.
    ----------------------------------------------------------------------------------------------------------------
    
    
    [[Page 61312]]
    
    
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                                                                Area wage        IME
                 Hospital                     Location         rate index    adjustment     Group ASA    Applied ASA
    Non-teaching Hospital.............  Large Urban.........          1.0           1.0        $5,775        $5,775
    ----------------------------------------------------------------------------------------------------------------
    
    
    ----------------------------------------------------------------------------------------------------------------
                                                                      Relative weighted product
          Patient            Length of stay      Days above  ------------------------------------------  TPC Amount
                                                  threshold     Inlier *     Outlier **       Total          ***
    #1.................  7 days...............            0        2.3446        0.0000        2.3446       $13,540
    #2.................  21 days..............            0        2.3446        0.0000        2.3446        13,540
    #3.................  35 days..............            6        2.3446        0.8144        3.1590       18,243
    ----------------------------------------------------------------------------------------------------------------
    * DRG Weight
    ** Outlier calculation = 33 percent of per diem weight  x  number of outlier days
    = .33 (DRG Weight/Geometric Mean LOS)  x  (Patient LOS-Long Stay Threshold)
    = .33 (2.3446/5.7)  x  (35-29)
    = .33 (.41133)  x  6 (take out to five decimal places)
    = .13574  x  6 (carry to five decimal places)
    = .8144 (carry to four decimal places)
    *** Applied ASA  x  Total RWP
    
    II. Outpatient Rates \1\ \2\ Per Visit
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International    Interagency
                                                                         military        and other
            MEPRS code \4\                  Clinical service            education &   federal agency   Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
                                                     A. Medical Care
    ----------------------------------------------------------------------------------------------------------------
    BAA...........................  Internal Medicine...............         $104.00         $194.00         $204.00
    BAB...........................  Allergy.........................           53.00           99.00          105.00
    BAC...........................  Cardiology......................           87.00          163.00          172.00
    BAE...........................  Diabetic........................           61.00          114.00          121.00
    BAF...........................  Endocrinology (Metabolism)......          102.00          190.00          201.00
    BAG...........................  Gastroenterology................          146.00          272.00          287.00
    BAH...........................  Hematology......................          179.00          334.00          352.00
    BAI...........................  Hypertension....................          106.00          198.00          208.00
    BAJ...........................  Nephrology......................          208.00          387.00          409.00
    BAK...........................  Neurology.......................          121.00          225.00          238.00
    BAL...........................  Outpatient Nutrition............           42.00           79.00           83.00
    BAM...........................  Oncology........................          134.00          250.00          264.00
    BAN...........................  Pulmonary Disease...............          153.00          285.00          301.00
    BAO...........................  Rheumatology....................          101.00          188.00          199.00
    BAP...........................  Dermatology.....................           78.00          146.00          154.00
    BAQ...........................  Infectious Disease..............          178.00          332.00          350.00
    BAR...........................  Physical Medicine...............           83.00          155.00          163.00
    BAS...........................  Radiation Therapy...............          128.00          238.00          251.00
    BAT...........................  Bone Marrow Transplant..........          115.00          214.00          226.00
    BAU...........................  Genetic.........................          367.00          683.00          721.00
    ----------------------------------------------------------------------------------------------------------------
                                                    B. Surgical Care
    ----------------------------------------------------------------------------------------------------------------
    BBA...........................  General Surgery.................          148.00          276.00          291.00
    BBB...........................  Cardiovascular and Thoracic               320.00          595.00          628.00
                                     Surgery.
    BBC...........................  Neurosurgery....................          173.00          323.00          341.00
    BBD...........................  Ophthalmology...................           90.00          168.00          177.00
    BBE...........................  Organ Transplant................          399.00          742.00          783.00
    BBF...........................  Otolaryngology..................          106.00          197.00          207.00
    BBG...........................  Plastic Surgery.................          131.00          244.00          258.00
    BBH...........................  Proctology......................           84.00          157.00          165.00
    BBI...........................  Urology.........................          112.00          209.00          221.00
    BBJ...........................  Pediatric Surgery...............          167.00          311.00          328.00
    BBK...........................  Peripheral Vascular Surgery.....           78.00          146.00          154.00
    BBL...........................  Pain Management.................           97.00          180.00          190.00
    ----------------------------------------------------------------------------------------------------------------
                                     C. Obstetrical and Gynecological (OB-GYN) Care
    ----------------------------------------------------------------------------------------------------------------
    BCA...........................  Family Planning.................           57.00          106.00          112.00
    BCB...........................  Gynecology......................           89.00          165.00          175.00
    BCC...........................  Obstetrics......................           74.00          138.00          146.00
    BCD...........................  Breast Cancer Clinic............          184.00          342.00          361.00
    ----------------------------------------------------------------------------------------------------------------
                                                    D. Pediatric Care
    ----------------------------------------------------------------------------------------------------------------
    BDA...........................  Pediatric.......................           62.00          115.00          121.00
    
    [[Page 61313]]
    
     
    BDB...........................  Adolescent......................           65.00          122.00          129.00
    BDC...........................  Well Baby.......................           42.00           79.00           83.00
    ----------------------------------------------------------------------------------------------------------------
                                                   E. Orthopaedic Care
    ----------------------------------------------------------------------------------------------------------------
    BEA...........................  Orthopaedic.....................           93.00          174.00          183.00
    BEB...........................  Cast............................           59.00          110.00          117.00
    BEC...........................  Hand Surgery....................           69.00          129.00          136.00
    BEE...........................  Orthotic Laboratory.............           67.00          125.00          132.00
    BEF...........................  Podiatry........................           56.00          105.00          111.00
    BEZ...........................  Chiropractic....................           25.00           47.00           50.00
    ----------------------------------------------------------------------------------------------------------------
                                        F. Psychiatric and/or Mental Health Care
    ----------------------------------------------------------------------------------------------------------------
    BFA...........................  Psychiatry......................          124.00          230.00          243.00
    BFB...........................  Psychology......................           93.00          174.00          184.00
    BFC...........................  Child Guidance..................           57.00          105.00          111.00
    BFD...........................  Mental Health...................          104.00          194.00          204.00
    BFE...........................  Social Work.....................          102.00          190.00          200.00
    BFF...........................  Substance Abuse.................           99.00          184.00          195.00
    ----------------------------------------------------------------------------------------------------------------
                                         G. Family Practice/Primary Medical Care
    ----------------------------------------------------------------------------------------------------------------
    BGA...........................  Family Practice.................           74.00          138.00          146.00
    BHA...........................  Primary Care....................           77.00          143.00          151.00
    BHB...........................  Medical Examination.............           80.00          148.00          156.00
    BHC...........................  Optometry.......................           50.00           93.00           98.00
    BHD...........................  Audiology.......................           35.00           65.00           69.00
    BHE...........................  Speech Pathology................          101.00          188.00          199.00
    BHF...........................  Community Health................           66.00          123.00          130.00
    BHG...........................  Occupational Health.............           73.00          136.00          143.00
    BHH...........................  TRICARE Outpatient..............           56.00          104.00          109.00
    BHI...........................  Immediate Care..................          107.00          200.00          211.00
    ----------------------------------------------------------------------------------------------------------------
                                                H. Emergency Medical Care
    ----------------------------------------------------------------------------------------------------------------
    BIA...........................  Emergency Medical...............          126.00          234.00          247.00
    ----------------------------------------------------------------------------------------------------------------
                                                 I. Flight Medical Care
    ----------------------------------------------------------------------------------------------------------------
    BJA...........................  Flight Medicine.................           88.00          164.00          173.00
    ----------------------------------------------------------------------------------------------------------------
                                                J. Underseas Medical Care
    ----------------------------------------------------------------------------------------------------------------
    BKA...........................  Underseas Medicine..............           43.00           79.00           84.00
    ----------------------------------------------------------------------------------------------------------------
                                                K. Rehabilitative Services
    ----------------------------------------------------------------------------------------------------------------
    BLA...........................  Physical Therapy................           41.00           77.00           81.00
    BLB...........................  Occupational Therapy............           61.00          114.00          120.00
    ----------------------------------------------------------------------------------------------------------------
    
    III. Ambulatory Procedure Visit (APV) \6\ Per Visit
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS Code \4\                  Clinical service            education &       agency       Other (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
      ............................            Medical Care
    BB............................  Surgical Care...................          937.00        1,740.00        1,836.00
    BD............................  Pediatric Care..................          233.00          430.00          454.00
    BE............................  Orthopaedic Care................        1,179.00        2,192.00        2,313.00
                                    All other B clinics not included          430.00          797.00          841.00
                                     above (BA, BC, BF, BG, BH, BI,
                                     BJ, BK and BL).
    ----------------------------------------------------------------------------------------------------------------
    
    
    [[Page 61314]]
    
    IV. Other Rates and Charges 1 2 Per Visit
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS Code \4\                  Clinical service            education &       agency       Other (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
    FBI...........................  A. Immunization.................          $16.00          $30.00          $32.00
    DGC...........................  B. Hyperbaric Chamber \5\.......          153.00          285.00          301.00
    ----------------------------------------------------------------------------------------------------------------
    
    C. Family Member Rate $10.85 (formerly Military Dependents Rate)
    D. Reimbursement Rates For Drugs Requested By Outside Providers \7\
        The FY 2000 drug reimbursement rates for drugs are for 
    prescriptions requested by outside providers and obtained at a Military 
    Treatment Facility. The rates are established based on the cost of the 
    particular drugs provided based on the DoD-wide average per National 
    Drug Code (NDC) number. Final rule 32 CFR Part 220, which was not 
    published at the time that this package was prepared, eliminates the 
    dollar threshold for high cost ancillary services and the associated 
    term ``high cost ancillary service.'' The phrase ``high cost ancillary 
    service'' will be replaced with the phrase ``ancillary services 
    requested by an outside provider'' on publication of final rule 32 CFR 
    Part 220. The list of drug reimbursement rates is too large to include 
    in this document. Those rates are available on request from OASD 
    (Health Affairs)--Resource Management/TMA, Attention: Major Rose 
    Layman, telephone: (703) 681-8910.
    E. Reimbursement Rates for Ancillary Services Requested By Outside 
    Providers \8\
        Final rule 32 CFR Part 220, which was not published at the time 
    that this package was prepared, eliminates the dollar threshold for 
    high cost ancillary services and the associated term ``high cost 
    ancillary service.'' The phrase ``high cost ancillary service'' will be 
    replaced with the phrase ``ancillary services requested by an outside 
    provider'' on publication of final rule 32 CFR Part 220. The list of FY 
    2000 rates for ancillary services requested by outside providers and 
    obtained at a Military Treatment Facility is too large to include in 
    this document. Those rates are available on request from OASD (Health 
    Affairs)--Resource Management/TMA, Attention: Major Rose Layman, 
    telephone: (703) 681-8910.
    F. Elective Cosmetic Surgery Procedures and Rates
    
    ----------------------------------------------------------------------------------------------------------------
                                        International    Current procedural
       Cosmetic surgery procedure      classification     terminology (CPT)    FY 2000 charge \10\      Amount of
                                      diseases (ICD-9)           \9\                                      charge
    ----------------------------------------------------------------------------------------------------------------
    Mammaplasty--augmentation......  85.50, 85.32,       19325 19324, 19318  Inpatient Surgical      (a b)
                                      85.31.                                  Care Per Diem Or APV
    Mastopexy......................  85.60.............  19316.............  Inpatient Surgical      (a b c)
                                                                              Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Facial Rhytidectomy............  86.82, 86.22......  15824.............  Inpatient Surgical      (a b)
                                                                              Care Per Diem Or APV
    Blepharoplasty.................  08.70, 08.44......  15820, 15821,       Inpatient Surgical      (a b c)
                                                          15822, 15823.       Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Mentoplasty (Augmentation/       76.68, 76.67......  21208, 21209......  Inpatient Surgical      (a b c)
     Reduction).                                                              Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Abdominoplasty.................  86.83.............  ..................  Inpatient Surgical      (a)
                                                                              Care Per Diem
    Lipectomy Suction per region 11  86.83.............  15876, 15877,       Inpatient Surgical      (a b c)
                                                          15878, 15879.       Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Rhinoplasty....................  21.87, 21.86......  30400, 30410......  Inpatient Surgical      (a b c)
                                                                              Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Scar Revisions beyond CHAMPUS..  86.84.............  1578--............  Inpatient Surgical      (a b c)
                                                                              Care Per Diem Or APV
                                                                              or applicable
                                                                              Outpatient Clinic
                                                                              Rate
    Mandibular or Maxillary          76.41.............  ..................  Inpatient Surgical      (a)
     Repositioning.                                                           Care Per Diem
    Dermabrasion...................  ..................  15780.............  APV or applicable       (b c)
                                                                              Outpatient Clinic
                                                                              Rate
    Hair Restoration...............  ..................  15775               APV or applicable       (b c)
                                                                              Outpatient Clinic
                                                                              Rate.
    Removing Tattoos...............  ..................  15780.............  APV or applicable       (b c)
                                                                              Outpatient Clinic
                                                                              Rate
    Chemical Peel..................  ..................  15790.............  APV or applicable       (b c)
                                                                              Outpatient Clinic
                                                                              Rate
    Arm/Thigh Dermolipectomy.......  86.83.............  15836, 15832......  Inpatient Surgical      (a b)
                                                                              Care Per Diem Or APV
    Refractive surgery.............  ..................  ..................  APV or applicable       (b c)
                                                                              Outpatient Clinic
                                                                              Rate
        Radial Keratotomy..........  ..................  65771.............  ......................  ...............
        Other Procedure (if applies  ..................  66999.............  ......................  ...............
         to laser or other
         refractive surgery).
    Otoplasty......................  ..................  69300.............  APV or applicable       (a b c)
                                                                              Outpatient Clinic
                                                                              Rate
    Brow Lift......................  86.3..............  15839.............  Inpatient Surgical      (a b)
                                                                              Care Per Diem Or APV
    ----------------------------------------------------------------------------------------------------------------
    
    
    [[Page 61315]]
    
    G. Dental Rate \12\ Per Procedure
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS code \4\                  Clinical service            education &       agency       Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
                                    Dental Services ADA code and DoD          $45.00         $109.00         $115.00
                                     established weight.
    ----------------------------------------------------------------------------------------------------------------
    
    H. Ambulance Rate \13\ Per Visit
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS code \4\                  Clinical service            education &       agency       Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
    FEA...........................  Ambulance.......................          $62.00         $116.00         $122.00
    ----------------------------------------------------------------------------------------------------------------
    
    I. Ancillary Services Requested by an Outside Provider \8\ Per 
    Procedure
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS code \4\                  Clinical service            education &       agency       Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
                                    Laboratory procedures requested           $13.00          $20.00          $21.00
                                     by an outside provider CPT `99
                                     weight multiplier.
                                    Radiology procedures requested             57.00           86.00           90.00
                                     by an outside provider CPT `99
                                     weight multiplier.
    ----------------------------------------------------------------------------------------------------------------
    
    J. AirEvac Rate \14\ Per Visit
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS code \4\                  Clinical service            education &       agency       Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
                                    AirEvac Services--Ambulatory....         $195.00         $364.00         $384.00
                                    AirEvac Services--Litter........          567.00        1,056.00        1,114.00
    ----------------------------------------------------------------------------------------------------------------
    
    K. Observation Rate \15\ Per hour
    
    ----------------------------------------------------------------------------------------------------------------
                                                                       International   Interagency &
                                                                         military      other federal
            MEPRS code \4\                  Clinical service            education &       agency       Other  (full/
                                                                         training        sponsored     third party)
                                                                          (IMET)         patients
    ----------------------------------------------------------------------------------------------------------------
                                    Observation Services--Hour......          $17.00          $31.00          $32.00
    ----------------------------------------------------------------------------------------------------------------
    
    Notes on Cosmetic Surgery Charges
    
        a Per diem charges for inpatient surgical care 
    services are listed in section I.B. (See notes 9 through 11, below, 
    for further details on reimbursable rates.)
        b Charges for ambulatory procedure visits (formerly 
    same day surgery) are listed in section III.C. (See notes 9 through 
    11, below, for further details on reimbursable rates.) The 
    ambulatory procedure visit (APV) rate is used if the elective 
    cosmetic surgery is performed in an ambulatory procedure unit (APU).
        c Charges for outpatient clinic visits are listed in 
    sections II.A-K. The outpatient clinic rate is not used for services 
    provided in an APU. The APV rate should be used in these cases.
    
    Notes on Reimbursable Rates
    
        1 Percentages can be applied when preparing bills for 
    both inpatient and outpatient services. Pursuant to the provisions 
    of 10 U.S.C. 1095, the inpatient Diagnosis Related Groups and 
    inpatient per diem percentages are 98 percent hospital and 2 percent 
    professional charges. The outpatient per visit percentages are 89 
    percent outpatient services and 11 percent professional charges.
        2 DoD civilian employees located in overseas areas 
    shall be rendered a bill when services are performed.
        3 The cost per Diagnosis Related Group (DRG) is based 
    on the inpatient full reimbursement rate per hospital discharge, 
    weighted to reflect the intensity of the principal and secondary 
    diagnoses, surgical procedures, and patient demographics involved. 
    The adjusted standardized amounts (ASA) per Relative Weighted 
    Product (RWP) for use in the direct care system is comparable to 
    procedures used by the Health Care Financing Administration (HCFA) 
    and the Civilian Health and Medical Program for the Uniformed 
    Services (CHAMPUS). These expenses include all direct care expenses 
    associated with direct patient care. The average cost per RWP for 
    large urban, other urban/rural, and overseas will be published 
    annually as an adjusted standardized amount (ASA) and will include 
    the cost of inpatient professional services. The DRG rates will 
    apply to reimbursement from all sources, not just third party 
    payers.
        4 The Medical Expense and Performance Reporting 
    System (MEPRS) code is a three digit code which defines the summary 
    account and the subaccount within a functional category in the DoD 
    medical system. MEPRS codes are used to ensure that consistent 
    expense and operating performance data is reported in the DoD 
    military medical system. An example of the MEPRS hierarchical 
    arrangement follows:
    
     
    ------------------------------------------------------------------------
                                                          MEPRS Code
    ------------------------------------------------------------------------
    Outpatient Care (Functional Category)......  B
      Medical Care (Summary Account)...........  BA
    
    [[Page 61316]]
    
     
        Internal Medicine (Subaccount).........  BAA
    ------------------------------------------------------------------------
    
        5 Hyperbaric service charges shall be based on hours 
    of service in 15-minute increments. The rates listed in section 
    III.B. are for 60 minutes or 1 hour of service. Providers shall 
    calculate the charges based on the number of hours (and/or fractions 
    of an hour) of service. Fractions of an hour shall be rounded to the 
    next 15-minute increment (e.g., 31 minutes shall be charged as 45 
    minutes).
        6 Ambulatory procedure visit is defined in DOD 
    Instruction 6025.8, ``Ambulatory Procedure Visit (APV),'' dated 
    September 23, 1996, as immediate (day of procedure) pre-procedure 
    and immediate post-procedure care requiring an unusual degree of 
    intensity and provided in an ambulatory procedure unit (APU). An APU 
    is a location or organization within an MTF (or freestanding 
    outpatient clinic) that is specially equipped, staffed and 
    designated for the purpose of providing the intensive level of care 
    associated with APVs. Care is required in the facility for less than 
    24 hours. All expenses and workload are assigned to the MTF-
    established APU associated with the referring clinic. The BB, BD and 
    BE APV rates are to be used only by clinics that are subaccounts 
    under these summary accounts (see 4 for an explanation of 
    MEPRS hierarchical arrangement). The All Other APV rate is to be 
    used only by those clinics that are not a subaccount under BB, BD or 
    BE.
        7 Prescription services requested by outside 
    providers (e.g., physicians and dentists) that are relevant to the 
    Third Party Collection Program. Third party payers (such as 
    insurance companies) shall be billed for prescription services when 
    beneficiaries who have medical insurance obtain medications from a 
    Military Treatment Facility (MTF) that are prescribed by providers 
    external to the MTF. Eligible beneficiaries (family members or 
    retirees with medical insurance) are not liable personally for this 
    cost and shall not be billed by the MTF. Medical Services Account 
    (MSA) patients, who are not beneficiaries as defined in 10 U.S.C. 
    1074 and 1076, are charged at the ``Other'' rate if they are seen by 
    an outside provider and only come to the MTF for prescription 
    services. The standard cost of medications ordered by an outside 
    provider that includes the cost of the drugs plus a dispensing fee 
    per prescription. The prescription cost is calculated by multiplying 
    the number of units (e.g., tablets or capsules) by the unit cost and 
    adding a $6.00 dispensing fee per prescription. Final rule 32 CFR 
    Part 220, which was not published at the time that this package was 
    prepared, eliminates the dollar threshold for high cost ancillary 
    services and the associated term ``high cost ancillary service.'' 
    The phrase ``high cost ancillary service'' will be replaced with the 
    phrase ``ancillary services requested by an outside provider'' on 
    publication of final rule 32 CFR Part 220. The elimination of the 
    threshold also eliminates the need to bundle costs whereby a patient 
    is billed if the total cost of ancillary services in a day (defined 
    as 0001 hours to 2400 hours) exceeds $25.00. The elimination of the 
    threshold is effective as per date stated in final rule 32 CFR Part 
    220.
        \8\ Charges for ancillary services requested by an outside 
    provider (e.g., physicians and dentists) are relevant to the Third 
    Party Collection Program. Third party payers (such as insurance 
    companies) shall be billed for ancillary services when beneficiaries 
    who have medical insurance obtain services from the MTF which are 
    prescribed by providers external to the MTF. Laboratory and 
    Radiology procedure costs are calculated by multiplying the DoD 
    established weight for the Physicians' Current Procedural 
    Terminology (CPT 99) code by either the laboratory or radiology 
    multiplier (section III.J). Eligible beneficiaries (family members 
    or retirees with medical insurance) are not personally liable for 
    this cost and shall not be billed by the MTF. MSA patients, who are 
    not beneficiaries as defined by 10 U.S.C. 1074 and 1076, are charged 
    at the ``Other'' rate if they are seen by an outside provider and 
    only come to the MTF for ancillary services. Final rule 32 CFR Part 
    220, which was not published at the time that this package was 
    prepared, eliminates the dollar threshold for high cost ancillary 
    services and the associated term ``high cost ancillary service.'' 
    The phrase ``high cost ancillary service'' will be replaced with the 
    phrase ``ancillary services requested by an outside provider'' on 
    publication of final rule 32 CFR Part 220. The elimination of the 
    threshold also eliminates the need to bundle costs whereby a patient 
    is billed if the total cost of ancillary services in a day (defined 
    as 0001 hours to 2400 hours) exceeds $25.00. The elimination of the 
    threshold is effective as per date stated in final rule 32 CFR Part 
    220.
        \9\ The attending physician is to complete the CPT 99 code to 
    indicate the appropriate procedure followed during cosmetic surgery. 
    The appropriate rate will be applied depending on the treatment 
    modality of the patient: ambulatory procedure visit, outpatient 
    clinic visit or inpatient surgical care services.
        \10\ Family members of active duty personnel, retirees and their 
    family members, and survivors shall be charged elective cosmetic 
    surgery rates. Elective cosmetic surgery procedure information is 
    contained in section III.G. The patient shall be charged the rate as 
    specified in the FY 2000 reimbursable rates for an episode of care. 
    The charges for elective cosmetic surgery are at the full 
    reimbursement rate (designated as the ``Other'' rate) for inpatient 
    per diem surgical care services in section I.B., ambulatory 
    procedure visits as contained in section III.C, or the appropriate 
    outpatient clinic rate in sections II.A-K. The patient is 
    responsible for the cost of the implant(s) and the prescribed 
    cosmetic surgery rate. (Note: The implants and procedures used for 
    the augmentation mammaplasty are in compliance with Federal Drug 
    Administration guidelines.)
        \11\ Each regional lipectomy shall carry a separate charge. 
    Regions include head and neck, abdomen, flanks, and hips.
        \12\ Dental service rates are based on a dental rate multiplier 
    times the American Dental Association (ADA) code and the DoD 
    established weight for that code.
        \13\ Ambulance charges shall be based on hours of service in 15-
    minute increments. The rates listed in section III.I are for 60 
    minutes or 1 hour of service. Providers shall calculate the charges 
    based on the number of hours (and/or fractions of an hour) that the 
    ambulance is logged out on a patient run. Fractions of an hour shall 
    be rounded to the next 15-minute increment (e.g., 31 minutes shall 
    be charged as 45 minutes).
        \14\ Air in-flight medical care reimbursement charges are 
    determined by the status of the patient (ambulatory or litter) and 
    are per patient. The appropriate charges are billed only by the Air 
    Force Global Patient Movement Requirement Center (GPMRC). These 
    charges are only for the cost of providing medical care. Flight 
    charges are billed by GPMRC separately using the commercial rate 
    effective the date of travel plus $1.00.
        \15\ Observation Services are billed at the hourly charge. Begin 
    counting when the patient is placed in the observation bed and round 
    up to the nearest hour. If the status of a patient changes to 
    inpatient, the charges for observation services are added to the DRG 
    assigned to the case and not separately billed. If a patient is 
    released from observation status and is sent to an APV, the charges 
    for observation services are not billed separately but are added to 
    the APV rate to recover all expenses.
    
        Dated: November 4, 1999.
    L.M. Bynum,
    Alternate OSD Federal Register Liaison Officer, Department of Defense.
    [FR Doc. 99-29392 Filed 11-9-99; 8:45 am]
    BILLING CODE 5001-10-P
    
    
    

Document Information

Published:
11/10/1999
Department:
Defense Department
Entry Type:
Notice
Document Number:
99-29392
Pages:
61311-61316 (6 pages)
PDF File:
99-29392.pdf