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 Department of Defense Office of the Secretary
 AGENCY: Office of the Secretary, DoD.
 ACTION: Notice of updated mental health per diem rates.
 SUMMARY: This notice provides for the updating of hospital-specific per diem rates for high volume providers and regional per diem rates for low volume providers; the updated cap per diem for high volume providers; the beneficiary per diem cost-share amount for low volume providers for FY 2007 under the TRICARE Mental Health Per Diem Payment System; and the updated per diem rates for both full-day and half-day TRICARE Partial Hospitalization Programs for fiscal year 2007.
 DATES: *Effective Date:*
                         The fiscal year 2007 rates contained in this notice are effective for services occurring on or after October 1, 2006.
 FOR FURTHER INFORMATION CONTACT: Christine Covie, Office of Medical Benefits and Reimbursement Systems, TRICARE Management Activity, telephone (303) 676-3841.


SUPPLEMENTARY INFORMATION: The final rule published in the 
                    **Federal Register**
                     on September 6, 1988, (53 FR 34285) set forth reimbursement changes that were effective for all inpatient hospital admissions in psychiatric hospitals and exempt psychiatric units occurring on or after January 1, 1989. The final rule published in the 
                    **Federal Register**
                     on July 1, 1993, (58 FR 35-400) set forth maximum per diem rates for all partial hospitalization admissions on or after September 29, 1993. Included in these final rules were provisions for updating reimbursement rates for each federal fiscal year. As stated in the final rules, each per diem shall be updated by the Medicare update factor for hospitals and units exempt from the Medicare Prospective Payment System. For fiscal year 2007, Medicare has recommended a rate of increase of 3.4 percent for hospitals and units excluded from the prospective payment system. TRICARE  will adopt this update factor for FY 2007 as the final update factor. Hospitals and units with hospital-specific rates (hospitals and units with high TRICARE volume) and regional specific rates for psychiatric hospitals and units with low TRICARE volume will have their TRICARE rates for FY 2006 updated by 3.4 percent for FY 2007. Partial hospitalization rates for full day and half day programs will also be updated by 3.4 percent for FY 2007. The cap amount for high volume hospitals and units will also be updated by the 3.4 percent for FY 2007. The beneficiary cost-share for low volume hospitals and units will also be updated by the 3.4 percent for FY 2007. Consistent with Medicare, the wage portion of the regional rate subject to the area wage adjustment is 75.665 percent for FY 2007. 
 
  The following reflect an update of 3.4 percent for FY 2007. Partial Hospitalization Rates for Full-Day and Half-Day Programs FY 2007
United States census region
Full-day rate 
                             (6 hours or more)
Half-day rate 
                             (3-5 hours)Northeast:New England (ME, NH, VT, MA, RI, CT)
$275
$207Mid-Atlantic (NY, NJ, PA)
298
224Midwest:East North Central (OH, IN, IL, MI, WI)
262
196West North Central (MN, IA, MO, ND, SD, NE, KS)
262
196South:South Atlantic (DE, MD, DC, VA, WV, NC, SC, GA, FL)
282
212East South Central (KY, TN, AL, MS)
305
229West South Central (AR, LA, TX, OK)
305
229West:Mountain (MT, ID, WY, CO, NM, AZ, UT, NV)
308
232Pacific (WA, OR, CA, AK, HI)
302
226( print page 60116)Puerto Rico
196
148
 The above rates are effective for services rendered on or after October 1, 2006. Dated: October 5, 2006. L.M. Bynum, Alternate OSD Federal Register Liaison Officer, Department of Defense.


[FR Doc. 06-8628 Filed 10-11-06; 8:45 am] BILLING CODE 5001-06-M