Billing and Collection by VA for Medical Care and Services
Proposed rule.
CFR Part: "38 CFR Part 17"
RIN Number: "RIN 2900-AQ69"
Citation: "84 FR 57668"
Page Number: "57668"
"Proposed Rules"
Agency: "
SUMMARY: The
DATES: Comments must be received by
ADDRESSES: Written comments may be submitted through http://www.Regulations.gov, by mail or hand-delivery to Director,
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: Under section 1729 of Title 38, United States Code (U.S.C.),
In this proposed rule, we would revise 38 CFR 17.101, which establishes the instances when
In addition to revising
Current 38 CFR 17.106 implements 38 U.S.C. 1729 by describing
Changes to 17.101
As explained in more detail below, we would amend current
We would revise
In proposed
Pursuant to 38 U.S.C. 1729,
The current practice of charging the higher of the amount determined using the methodologies in
We believe that by removing the portion of the current regulation that requires
Additionally, we find that it is equitable to charge the same rates regardless of the facility in which the individual sought treatment; the third-party payer should not be disadvantaged and required to pay higher charges because the individual sought care at a non-
Technical Amendments to
We propose to make several technical amendments to ensure the information contained in
Currently,
To ensure the correct VHA offices and website are referenced in
We would amend
In
Throughout
We propose to amend
We would amend
For ease of reference, the following chart explains these technical changes to
Section Propose to remove Propose to add 17.101(a) Chief Business Office Office of Community Care 17.101(a) http://www.va.gov/cbo, under "Charge Data." https://www.va.gov/COMMUNITYCARE, under "Payer Rates and Charges." 17.101 Ingenix/St. Anthony's Optum Essential. 17.101 MDRFAIR Health . 17.101 MedStat MarketScan. 17.101 Milliman USA, Inc Milliman, Inc. 17.101 percent Sample Percent Sample. 17.101(e)(3)(i)(C) 2.0 6.5. 17.101(e)(3)(i)(C) 6.5 2.0.
In addition to the changes proposed above, we would amend paragraph (f)(2)(ii) of
Similarly, we would remove the word "three" in
For the same reasons, we would remove from the final sentence in this paragraph the word "four" with regard to the number of data sources used. The data sources used to make this determination under
We would also remove the word "untrended" from
We propose to revise paragraphs (f)(3) and (i)(3) of
Current
We would also revise the language in this same paragraph that references "UCR Module of the Comprehensive Healthcare Payment System, a release from Ingenix from a nationwide database of dental charges" and instead insert "
We would then amend paragraph (h)(2)(i), which explains the methodology used to determine the average charge for any particular HCPCS dental code. This is done by computing a preliminary mean average of the three charges for each code. We would revise
In that same sentence, we would also remove "three" and add "available" in reference to the charges for each code as the number of charges for each code can vary based on the number of sources used. This paragraph references three charges because three data sources are reflected in paragraph (h)(2). However, as mentioned previously, we are proposing to revise paragraph (h)(2) to reflect that one of these data sources (Prevailing Healthcare Charges System database) no longer exists, and the number of data sources used to calculate these charges under paragraph (h) can vary. Instead of listing the data sources and including the specific number of data sources, this information would continue to be made available to the public either through a
In the second sentence in paragraph (h)(2)(i), we propose to remove the language "by testing whether any charge differs from the preliminary mean charge by more than 50 percent of the preliminary mean charge. In such cases, the charge most distant from the preliminary mean is removed as an outlier, and the average charge is calculated as a mean of the two remaining charges." This language refers to how statistical outliers are identified and removed in calculating the average charge and is based on using three data sources. Because we propose to update
The last sentence of paragraph (h)(2)(i) explains that in cases where none of the charges differ from the preliminary mean charge by more than 50 percent of the preliminary mean charge, the average charge is calculated as a mean of all three reported charges. As previously explained in the preceding paragraphs, we would no longer use three data sources and the number of data sources can vary. We propose to remove the language in this last sentence of paragraph (h)(2)(i), specifically "differ from the preliminary mean charge by more than 50 percent of the preliminary mean charge" and replace that with "removed". We would also remove "three" from the last sentence in this paragraph to correctly state how the charges are calculated and to reflect that the average charge is no longer based on three reported charges. Thus, the proposed revised sentence would explain that where none of the charges are removed, the average charge is calculated as a mean of all reported charges.
In calculating professional charges for dental services identified by HCPCS Level II codes, paragraph (h)(3) of
We would revise
We would revise the remaining sentences in this same paragraph to state that for any remaining CPT/HCPCS codes that have not been assigned RVUs using the preceding data sources (i.e., the
We would amend several paragraphs in
We would also amend paragraph (l)(3)(ii) in
We would also remove "three" in the first sentence of this same paragraph and replace it with "available." As explained previously,
We propose to further revise the language in paragraph (l)(3)(ii) that describes how statistical outliers are identified and removed. The paragraph explains that the methodology used to identify and remove statistical outliers based on the charges from the three databases which is done by testing whether any charge differs from the preliminary mean charge by more than five times the preliminary mean charge, or by less than 0.2 times the preliminary mean charge. The remaining sentences in this paragraph further explain that the charge most distance from the preliminary mean is removed as an outlier, and that the average charge is calculated as a mean of the two remaining charges. The last sentence further states that the average charge is calculated as a mean of all three reported charges where none of the charges differ from the preliminary mean charge by more than five times the preliminary mean charge, or less than 0.2 times the preliminary mean charge. As explained previously, because we use two data sources now instead of three, this language on how we would determine the statistical outliers and the average charge is no longer accurate. There would no longer be two remaining charges in identifying and removing outliers. We would thus revise this paragraph to correctly state how charges are calculated. In addition to those changes we would make to paragraph (l)(3)(ii) as proposed in the preceding paragraphs, after the first sentence in this paragraph, we would state that "statistical outliers are identified and removed." After this sentence, we would remove the remaining subsequent text of the paragraph and add a sentence to state that where none of the charges are removed, the average charge is calculated as a mean of all reported charges. This paragraph would be updated to reflect how average charges are determined under paragraph (l)(3) as we explained previously.
As previously explained, section 1729 of 38 U.S.C. authorizes
Currently, third-party payers are requesting refunds many months and sometimes years after the original payment was submitted and processed by
Section 1729(f) provides that no provision of any third-party payer's plan having the effect of excluding from coverage or limited payment for certain care if that care is provided in or through any
Effect of Rulemaking
The Code of Federal Regulations, as proposed to be revised by this proposed rulemaking, would represent the exclusive legal authority on this subject. No contrary rules or procedures would be authorized. All
Paperwork Reduction Act
Although this proposed rule contains a provision constituting a collection of information, at 38 CFR 17.101, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), no proposed new or modified collections of information are associated with this rule. The information collection provision for
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule 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. 601-612. We have not proposed any new requirements that would have such an effect. The changes being made to these regulations are mostly technical in nature, and conform to existing statutory requirements and existing practices in the program. Therefore, pursuant to 5 U.S.C. 605(b), this amendment would be exempt from the initial and final regulatory flexibility analysis requirements of 5 U.S.C. 603 and 604.
Executive Orders 12866, 13563, and 13771
Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, and other advantages; distributive impacts; and equity). Executive Order 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of
Catalog of Federal Domestic Assistance Numbers
The Catalog of Federal Domestic Assistance numbers and titles for the programs affected by this document are 64.008, Veterans Domiciliary Care; 64.011, Veterans Dental Care; 64.012, Veterans Prescription Service; 64.013, Veterans Prosthetic Appliances; 64.014, Veterans State Domiciliary Care; 64.015, Veterans State
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 home care,
Signing Authority
The Secretary of
Regulation Development Coordinator,
For the reasons stated in the preamble, the
PART 17--MEDICAL
1. The authority citation for part 17 is revised to read as follows:
Authority:38 U.S.C. 501, and as noted in specific sections.
*****
Section 17.101 is also issued under 38 U.S.C. 101, 1701, 1705, 1710, 1721, 1722, 1729.
*****
2. Amend 17.101 by:
a. In paragraph (a)(5), removing the definition of "MDR."
b. In paragraph (a)(5), adding alphabetically the definitions of "
c. Revising paragraphs (a)(7), (f)(2)(ii), (f)(3), (h)(2) introductory text, (h)(2)(i), (h)(2)(ii), (h)(3), (i)(2)(ii), (i)(3), (l)(3) introductory text, and (l)(3)(ii).
The additions and revisions read as follows:
*****
(a) * * *
(5) * * *
*****
*****
MarketScan means the MarketScan Commercial Claims & Encounters Database developed by
*****
(7) Charges for medical care or services provided by non-
*****
(f) * * *
(2) * * *
(ii) RVUs for CPT/HCPCS codes that do not have Medicare RVUs and are not designated as unlisted procedures. For CPT/HCPCS codes that are not assigned RVUs in paragraphs (f)(2)(i) or (f)(2)(iii) of this section, total RVUs are developed based on various charge data sources. For these CPT/HCPCS codes, that nationwide 80th percentile billed charges are obtained, where statistically credible, from the
*****
(3) Geographically-adjusted 80th percentile conversion factors. CPT/HCPCS codes are separated into the following 23 CPT/HCPCS code groups: Allergy immunotherapy, allergy testing, cardiovascular, chiropractor, consults, emergency room visits and observation care, hearing/speech exams, immunizations, inpatient visits, maternity/cesarean deliveries, maternity/non-deliveries, maternity/normal deliveries, miscellaneous medical, office/home/urgent care visits, outpatient psychiatry/alcohol and drug abuse, pathology, physical exams, physical medicine, radiology, surgery, therapeutic injections, vision exams, and well-baby exams. For each of the 23 CPT/HCPCS code groups, representative CPT/HCPCS code group; see paragraph (a)(3) of this section for Data Sources. The 80th percentile charge for each selected CPT/HCPCS code is obtained from the
*****
(h) * * *
(2) Nationwide 80th percentile charges by HCPCS code. For each HCPCS dental code, 80th percentile charges are extracted from various independent data sources, including the National Dental Advisory Service nationwide pricing index and the
(i) Averaging methodology. The average charge for any particular HCPCS dental code is calculated by first computing a preliminary mean of the available charges for each code. Statistical outliers are identified and removed. In cases where none of the charges are removed, the average charge is calculated as a mean of all reported charges.
(ii) Nationwide 80th percentile charges for HCPCS dental codes designated as unlisted procedures. For HCPCS dental codes designated as unlisted procedures, 80th percentile charges are developed based on the weighted median 80th percentile charge of HCPCS dental codes within the series in which the unlisted procedure code occurs. A nationwide
*****
(3) Geographic area adjustment factors. A geographic adjustment factor (consisting of the ratio of the level of charges in a given geographic area to the nationwide level of charges) for each geographic area and dental class of service is obtained from
*****
(i) * * *
(2) * * *
(ii) RVUs for CPT/HCPCS codes that do not have Medicare-based RVUs and are not designated as unlisted procedures. For CPT/HCPCS codes that are not assigned RVUs in paragraphs (i)(2)(i) or (iii) of this section, total RVUs are developed based on various charge data sources. For these CPT/HCPCS codes, the nationwide 80th percentile billed charges are obtained, where statistically credible, from the
*****
(3) Geographically-adjusted 80th percentile conversion factors. Representative CPT/HCPCS codes are statistically selected and weighted so as to give a weighted average RVU comparable to the weighted average RVU of the entire pathology/laboratory CPT/HCPCS code group. The 80th percentile charge for each selected CPT/HCPCS code is obtained from the
*****
(l) * * *
(3) Nationwide 80th percentile charges for HCPCS codes without RVUs. For each applicable HCPCS code, 80th percentile charges are extracted from two independent data sources: the
*****
(ii) Averaging methodology. The average 80th percentile trended charge for any particular HCPCS code is calculated by first computing a preliminary mean of the available charges for each HCPCS code. Statistical outliers are identified and removed. In cases where none of the charges are removed, the average charge is calculated as a mean of all reported charges.
*****
3.
In the table below, for each section indicated in the left column, remove the words indicated in the middle column from wherever it appears in the section, and add the words indicated in the right column.
Section Remove Add 17.101 Chief Business Office Office of Community Care. 17.101 http://www.va.gov/cbo, under "Charge Data." https://www.va.gov/COMMUNITYCARE, under "Payer Rates and Charges." 17.101 Ingenix/St. Anthony's Optum Essential. 17.101 MDRFAIR Health . 17.101 MedStat MarketScan. 17.101 Milliman USA, Inc Milliman, Inc. 17.101 percent Sample Percent Sample. 17.101 2.0 6.5. 17.101 6.5 2.0.
4. Amend
a. Revising paragraph (c)(4).
b. Adding new paragraph (f)(2)(viii).
The revisions and additions read as follows:
*****
(c) * * *
(4) A third-party payer may not, without the consent of a
*****
(f) * * *
(2) * * *
(viii) A provision in a third-party payer's plan that directs payment for care or services be refused or lessened because the billing is not presented in accordance with a specified methodology (such as a line item methodology) is not by itself a permissible ground for refusing or reducing third-party payment.
*****
[FR Doc. 2019-22972 Filed 10-25-19;
BILLING CODE 8320-01-P



Investor service company downgrades ProMedica’s bond rating
Clearwater Wins Best Software Solution at UK & European Insurance Awards
Advisor News
- Wall Street executives warn Trump: Stop attacking the Fed and credit card industry
- Americans have ambitious financial resolutions for 2026
- FSI announces 2026 board of directors and executive committee members
- Tax implications under the One Big Beautiful Bill Act
- FPA launches FPAi Authority to support members with AI education and tools
More Advisor NewsAnnuity News
- Retirees drive demand for pension-like income amid $4T savings gap
- Reframing lifetime income as an essential part of retirement planning
- Integrity adds further scale with blockbuster acquisition of AIMCOR
- MetLife Declares First Quarter 2026 Common Stock Dividend
- Using annuities as a legacy tool: The ROP feature
More Annuity NewsHealth/Employee Benefits News
- Solano County Supervisors hear get an earful from strikers
- How Will New York Pay for Hochul's State of the State Promises?
- As the January health insurance deadline looms
- Illinois extends enrollment deadline for health insurance plans beginning Feb. 1
- Virginia Republicans split over extending health care subsidies
More Health/Employee Benefits NewsLife Insurance News