[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Rules and Regulations]
[Pages 65571-65587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26316]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AP24


Expanded Access to Non-VA Care Through the Veterans Choice 
Program

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Veterans Affairs (VA) amends its medical 
regulations concerning its authority for eligible veterans to receive 
care from non-VA entities and providers. The Veterans Access, Choice, 
and Accountability Act of 2014 directs VA to establish a program to 
furnish hospital care and medical services through non-VA health care 
providers to veterans who either cannot be seen within the wait-time 
goals of the Veterans Health Administration or who qualify based on 
their place of residence (hereafter referred to as the Veterans Choice 
Program, or the ``Program''). The law also requires VA to publish an 
interim final rule establishing this program. This interim final rule 
defines the parameters of the Veterans Choice Program, and clarifies 
aspects affecting veterans and the non-VA providers who will furnish 
hospital care and medical services through the Veterans Choice Program.

DATES: Effective Date: This rule is effective on November 5, 2014.
    Comment date: Comments must be received on or before March 5, 2015.

ADDRESSES: Written comments may be submitted by email through http://www.regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (02REG), Department of Veterans Affairs, 810 
Vermont Avenue NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. (This is not a toll-free number.) Comments should indicate 
that they are submitted in response to ``RIN 2900-AP24, Expanded Access 
to Non-VA Care through the Veterans Choice Program.'' Copies of 
comments received will be available for public inspection in the Office 
of Regulation Policy and Management, Room 1068, between the hours of 
8:00 a.m. and 4:30 p.m. Monday through Friday (except holidays). Please 
call (202) 461-4902 for an appointment. (This is not a toll-free 
number.) In addition, during the

[[Page 65572]]

comment period, comments may be viewed online through the Federal 
Docket Management System (FDMS) at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Kristin Cunningham, Director, Business 
Policy, Chief Business Office (10NB), Veterans Health Administration, 
Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 
20420, (202) 382-2508. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: 
    Executive Summary: Purpose of This Regulatory Action: We are 
creating new regulations to define and authorize the Veterans Choice 
Program required by section 101 of the Veterans Access, Choice, and 
Accountability Act of 2014, as modified by the Department of Veterans 
Affairs Expiring Authorities Act of 2014. Specifically, under this 
Program, eligible veterans may elect to receive hospital care and 
medical services from eligible non-VA entities and providers. The 
Program does not modify VA's previously existing authorities to furnish 
care through non-VA providers, but instead enhances VA's options to 
furnish care that is timely and available in veterans' communities.
    Summary of the Major Provisions of this Regulatory Action: This 
interim final rule--
    <bullet> Modifies VA's existing copayment regulations to clarify 
that a copayment of $0 is owed at the time of service for eligible 
veterans receiving care or services through the Program. VA will 
determine the copayment amount after the provider bills VA for the cost 
of furnished care, and veterans may be liable for some or all of the 
copayment amount at that time. Copayment rates will not exceed those 
currently established in regulation.
    <bullet> Establishes the scope of the Program, including the types 
of care and services that are covered. By law, the Program is 
authorized to run until August 7, 2017, or until the Veterans Choice 
Fund established by the Act is exhausted.
    <bullet> Defines key terms used throughout the regulation. These 
terms include episode of care, which is limited to 60 days but includes 
follow-up appointments and ancillary and specialty services; health-
care plan, which includes any insurance plan or contract or agreement 
other than Medicare, Medicaid, or TRICARE; residence, which is a legal 
residence or personal domicile; VA medical facility, which includes VA 
hospitals, community-based outpatient clinics, and VA health care 
centers; and the wait-time goals of the Veterans Health Administration, 
which are to furnish care within 30 days of either the date that an 
appointment is deemed clinically appropriate by a VA health care 
provider, or if no such clinical determination has been made, the date 
a veteran prefers to be seen.
    <bullet> Defines eligibility criteria for veterans to participate 
in the Program. In general, veterans must have been enrolled in the VA 
health care system on or before August 1, 2014, or must be within 5 
years of post-combat separation. Veterans must also either be unable to 
schedule an appointment within the wait-time goals of the Veterans 
Health Administration or qualify based on their place of residence. 
Veterans may qualify based on their place of residence if they live 
more than 40 miles from the closest VA medical facility; if they reside 
in a state without a VA medical facility that provides hospital care, 
emergency medical services, and surgical care rated by the Secretary as 
having a surgical complexity of standard, and they reside more than 20 
miles from a medical facility that offers these services in another 
state; or, with certain exceptions, if they reside 40 miles or less 
from a VA medical facility and must travel by air, boat, or ferry, or 
face an unusual or excessive burden in traveling to a VA medical 
facility because of geographical challenges.
    <bullet> Explains the process for authorizing non-VA care under the 
Program. Eligible veterans may elect to receive VA or non-VA care. If 
they elect to receive non-VA care, they may select the provider who 
will furnish their care, if that provider is eligible.
    <bullet> Describes the effect of the Program on other benefits and 
services available to veterans. In general, the Program does not affect 
a veteran's eligibility for hospital care or medical services under the 
medical benefits package. VA will pay for and fill prescriptions 
written by non-VA providers under the Program to the extent such 
prescriptions are covered by the VA medical benefits package. VA will 
reimburse veterans' copayments or cost-shares required by their other 
health-care plan to the extent authorized by law, and VA will calculate 
veterans' VA copayments as described above. VA will also reimburse 
veterans for travel to receive care under the Program if the veteran is 
otherwise eligible to participate in VA's beneficiary travel program.
    <bullet> Identifies the start date for eligible veterans under the 
Program. VA is phasing in implementation of the Program to ensure it 
has the necessary resources in place to furnish hospital care and 
medical services to eligible veterans.
    <bullet> Defines eligibility criteria for non-VA health care 
entities and providers to participate in the Program. Eligible non-VA 
entities and providers must enter into an agreement with VA to furnish 
care, and must be participating in the Medicare program, be a 
Federally-qualified health center, or be a part of the Department of 
Defense or the Indian Health Service. Non-VA entities or providers must 
be accessible to the veteran, meaning they must be able to provide 
timely care, must have the necessary qualifications to furnish the 
care, and must be within a reasonable distance of the veteran's 
residence. Eligible non-VA entities and providers must maintain at 
least the same or similar credentials and licenses as VA providers, and 
must submit information verifying compliance with this requirement 
annually.
    <bullet> Establishes payment rates and methodologies for 
reimbursing participating non-VA health care entities and providers 
furnishing care and services through the Program. Except for in highly 
rural areas, VA may not pay an eligible entity or provider more than 
the applicable Medicare rate under Title XVIII of the Social Security 
Act for hospital care or medical services furnished under the Program. 
When there are no Medicare rates available, VA will follow its usual 
methodology for calculating payments to the extent such methodology is 
consistent with the Act. VA is a secondary payer for care furnished for 
a nonservice-connected disability if the veteran has another health-
care plan. VA will only pay for authorized care where an actual 
encounter with a health care provider occurs. Veterans must seek 
authorization from VA before receiving care.
    <bullet> Establishes a claims processing system to receive requests 
for payment and to provide accurate and timely payments for claims 
received under the Program. This system will be managed by the Veterans 
Health Administration's Chief Business Office.
    Costs and Benefits: As further detailed in the Regulatory Impact 
Analysis, which can be found as a supporting document at http://www.regulations.gov and is available on VA's Web site at http://www.va.gov/orpm/, by following the link for ``VA Regulations Published 
From FY 2004 Through Fiscal Year to Date,'' the interim final rule will 
affect eligible veterans and eligible non-VA health care entities and 
providers. Eligible veterans may elect to receive, at VA expense, care 
from a non-VA provider of their choice that is eligible

[[Page 65573]]

and accessible to them. These providers generally will either be able 
to provide care sooner than VA could or are located closer to the 
eligible veteran's residence than a VA medical facility. The Program is 
authorized to run for 3 years, or until resources appropriated in the 
Veterans Choice Fund are exhausted, and is intended as a short-term 
solution to expand access to care while VA enhances its capacity to 
furnish care in a timely and accessible manner. Participating eligible 
non-VA health care entities and providers will receive payment for 
furnishing authorized hospital care and medical services to eligible 
veterans under the Program.
    General Discussion: On August 7, 2014, the President signed into 
law the Veterans Access, Choice, and Accountability Act of 2014 (``the 
Act,'' Public Law 113-146, 128 Stat. 1754). Further technical revisions 
to the Act were made on September 26, 2014, when the President signed 
into law the Department of Veterans Affairs Expiring Authorities Act of 
2014 (Pub. L. 113-175, 128 Stat. 1901, 1906). Section 101 of the Act 
creates the Veterans Choice Program (``the Program''). Section 101 
requires the Secretary to furnish hospital care and medical services to 
certain eligible veterans through agreements with identified eligible 
entities or providers. Sec. 101(a)(1)(A), Public Law 113-146, 128 Stat. 
1754. Delivery of such care through non-VA health care providers will 
be at the election of eligible veterans. This interim final rulemaking 
primarily restates these mandates and prescriptions in a regulatory 
framework, and provides guidance where Congress' instructions were not 
clearly executable on the face of the law. Congress directed VA to 
publish interim final regulations concerning this program within 90 
days of enactment. Sec. 101(n), Public Law 113-146, 128 Stat. 1754. 
This rulemaking complies with that mandate.
    Nothing in this rulemaking modifies VA's existing authority to 
furnish non-VA care, such as under 38 U.S.C. 1703, 1725, 1728, 8111, or 
8153. The requirements of those statutes and their implementing 
regulations continue to apply, and VA will use those authorities when 
appropriate. Any veteran currently receiving non-VA care who is 
eligible for the Program will be provided the opportunity to elect to 
participate in the Program or to continue being provided care under 
VA's other authorities. As discussed below, there are some differences 
between the Program and other non-VA care.
    VA is making changes to several other regulations as part of this 
rulemaking. Specifically, VA is amending 38 CFR 17.108, 17.110, and 
17.111 concerning copayment responsibilities for hospital care and 
medical services. Section 101(j) of the Act requires an eligible 
veteran to pay a copayment at the time of the appointment to the non-VA 
provider if such veteran would be required to pay a copayment for the 
receipt of hospital care or medical services at a VA medical facility. 
Under current practice, when veterans receive non-VA care, VA copayment 
obligations are not calculated until the end of the billing process. 
Consistent with this practice, VA is exercising its authority to 
establish copayment rates under 38 U.S.C. 1710(f) to revise its 
copayment regulations at Sec. Sec.  17.108, 17.110, and 17.111 to state 
that veterans who receive hospital care and medical services under the 
Program are subject to a VA copayment of $0 at the time of service, and 
that their copayment liability will be determined after the authorized 
care is furnished, but will be no greater than the amounts already 
specified in Sec. Sec.  17.108, 17.110, or 17.111.
    Currently, no veterans are charged a VA copayment at the time of 
their appointment. This is true whether such care is furnished by a VA 
or non-VA provider. Under current practice, if a veteran has other 
health insurance, any payment by the other health insurance is first 
applied against the veteran's VA copayment liability, and if the third 
party payment is equal to or greater than the veteran's copayment 
liability, the veteran owes no VA copayment. Even if a veteran does not 
have other health insurance, VA does not bill the veteran for the 
applicable copayment until after the appointment. This VA practice has 
been followed for years but has never been prescribed in regulation.
    For many veterans with other health-care plans, the experience 
under the Program will be the same as they would experience receiving 
non-VA care under another authority. Payments made by the veteran's 
health-care plan are generally enough to extinguish the VA copayment 
liability in full, and to the extent this happens under the Program, 
these veterans would owe no VA copayment. If the other health-care plan 
does not pay enough to cover the amount of the VA copayment, the 
veteran will be liable for the balance.
    VA is making changes to Sec. Sec.  17.108, 17.110, and 17.111 to 
make the veteran's experience under the Program more like the veteran's 
experience in VA facilities and under other non-VA care authorities 
described above. Specifically, VA is establishing the copayment amount 
under these authorities at $0 at the time of service and, consistent 
with Sec. Sec.  17.108, 17.110, and 17.111, as amended, VA will notify 
non-VA providers that the VA copayment amount required at the time of 
service is $0. This ensures that VA's implementation of section 101(j), 
which states that non-VA entities and providers will collect at the 
time of furnishing care or services any copayment that would be 
required for the receipt of the care or services at a medical facility 
of the Department, is consistent with VA practice under existing non-VA 
care authorities and addresses a number of practical challenges, as 
described below.
    While VA will authorize care in advance of an appointment, VA may 
not be able to determine the veteran's copayment liability until after 
VA receives a report of what specific services were furnished by the 
non-VA provider. For care provided by VA, there are specific copayment 
rates for different types of appointments. However, this coding 
practice is not necessarily consistent with the practices used by other 
health care providers. Thus, VA cannot accurately assess a veteran's 
potential copayment liability before care is actually furnished by the 
non-VA provider. When VA has received a report of what services were 
provided, it can then determine the proper copayment amounts for those 
services in accordance with Sec. Sec.  17.108, 17.110, and 17.111. 
Establishing the copayment amount at $0 at the time of services will 
ensure that VA is consistently determining the copayment 
responsibilities for eligible veterans. This is also consistent with 
section 101(j)(1) of the Act, which provides that the Secretary must 
require a copayment from eligible veterans ``only if such eligible 
veteran would be required to pay a copayment for the receipt of such 
care or services at a medical facility of the Department.'' These 
changes to Sec. Sec.  17.108, 17.110, and 17.111 will ensure that 
veterans are only liable for copayments they would have paid if the 
care or services had been provided in a VA facility or under the 
standard non-VA care program. We believe it is better to ensure that 
veterans are liable only for an appropriate copayment amount that is 
determined after the appointment than to institute a blanket 
requirement at the point of service that may result in either 
additional billing to the veteran or reimbursement to the veteran.
    Billing the veteran at the end of the billing process is also 
consistent with VA's practice under existing non-VA care authorities. 
The difficulty in determining the appropriate copayment is present in 
the standard non-VA care program, but is not an issue because

[[Page 65574]]

when VA uses its existing authorities to pay for non-VA care, VA is the 
primary payer and can determine liabilities after the care is 
furnished. Thus, VA has resolved this issue through the standard non-VA 
care program administratively by calculating the copayment at the end 
of the billing process. This is a more efficient mechanism than 
assigning a copayment upfront that could be wrong and later determining 
that either reimbursement or further collections are needed.
    VA is modifying Sec.  17.108(b)(1) to note that copayments will be 
determined as set forth in paragraphs (b)(2), (b)(3), and a new (b)(4) 
of that section. The new paragraph (b)(4) provides that under the 
Program, the copayment amount is $0 at the time of service, and that 
the copayment liability will be determined at the end of the billing 
process. VA is revising Sec.  17.108(c)(1) to include an exception as 
set forth in a new (c)(4) of that section. VA is also making a minor 
technical adjustment to paragraphs (b)(1) and (c)(1) to include care 
pursuant to a contract, provider agreement, or sharing agreement 
consistent with the authorized forms of agreement under the Act. The 
new paragraph (c)(4) includes the same language as the new paragraph 
(b)(4). VA also is modifying Sec. Sec.  17.110(b) and 17.111(b) in a 
similar way. The changes to Sec.  17.110 provide that veterans will owe 
a copayment of $0 at the time they fill a prescription, and the changes 
to Sec.  17.111 read the same as those in Sec.  17.108. VA notes that 
under the Program, only services that are considered hospital care and 
medical services may be furnished. Section 17.111 authorizes both 
institutional and non-institutional care, but only non-institutional 
care is considered part of hospital care or medical services under 
Sec.  17.38(a)(1)(xi).

Section 17.1500 Purpose and Scope

    Section 17.1500 states the purpose and scope of the Program 
authorized by section 101 of the Act. The Program is funded with $10 
billion in appropriated resources in the Veterans Choice Fund through 
section 802 of the Act. The Program is authorized to continue until the 
date the Veterans Choice Fund is exhausted or until August 7, 2017, 
whichever occurs first. Sec. 101(p), Public Law 113-146, 128 Stat. 
1754. Section 17.1500(a) cites to the Act but does not identify 
specifically the alternate termination events specified in the Act. 
When one of those events occurs, VA will no longer have authority to 
operate this Program. Absent further amendments to the Act, the Program 
will end upon the occurrence of one of these events, at which time VA 
will issue a direct final rule to remove this regulation from the Code 
of Federal Regulations.
    Section 17.1500(b) defines the scope of the Program as authorizing 
non-VA hospital care and medical services to eligible veterans through 
agreements with eligible entities or providers. This is consistent with 
section 101(a)(1)(A) of the Act. Eligible veterans are described in 
Sec.  17.1510, and eligible entities or providers are described in 
Sec.  17.1530.
    The Act authorizes VA to provide hospital care and medical services 
to eligible veterans. VA has defined the terms hospital care and 
medical services through regulation at Sec.  17.38, which establishes 
the medical benefits package. Any care that is covered by the medical 
benefits package, including prescriptions such as prescription 
medications or prosthetic devices, may be furnished through the 
Program, but any services for which there are specific eligibility 
criteria that must be met to receive these services (such as dental 
care) are still subject to those eligibility standards.

Section 17.1505 Definitions

    Section 17.1505 defines key terms for the Program.
    The term ``appointment'' is defined in these regulations as an 
authorized and scheduled encounter with a health care provider for the 
delivery of hospital care or medical services. The definition excludes 
unscheduled visits and emergency room visits because they are not 
scheduled encounters and cannot be authorized in advance. The purpose 
of the Program is to offer veterans the option to receive non-VA care 
if they cannot obtain a scheduled visit from a VA provider in a timely 
or geographically convenient manner. There is no indication in the law 
that it was intended to authorize unscheduled non-VA care. Emergency 
care would, however, continue to be reimbursed by VA consistent with 38 
CFR 17.120-132 and 17.1000-1008. In short, if a veteran visits a non-VA 
health care provider without seeking authorization from VA to schedule 
such an appointment, VA cannot use Program funds to pay for the 
services delivered and cannot provide reimbursement after the fact.
    ``Attempt to schedule'' is defined as contact with a VA scheduler 
or VA health care provider in which a stated request for an appointment 
is made. The contact must be with a VA employee who is responsible for 
scheduling appointments or with a VA health care provider. This 
limitation will ensure that an attempt to schedule only occurs when an 
individual contacts someone who has the capacity to actually schedule 
an appointment or, in the case of a VA health care provider, ensure 
that a scheduler is made aware of the need for an appointment. There 
must also be a statement by the veteran that he or she is requesting an 
appointment. If a veteran does not request an appointment, he or she 
would not have attempted to schedule an appointment. While VA will 
apply this standard liberally, a veteran must indicate a desire to be 
seen by a VA health care provider. The requirement of an attempt to 
schedule an appointment is established under section 101(b)(2)(A) of 
the Act as a prerequisite for certain veteran eligibility under the 
Program; that section states that veterans are eligible under this 
Program if they attempt or have attempted to schedule an appointment 
with VA but were unable to do so within the wait-time goals of the 
Veterans Health Administration.
    The term ``episode of care'' is defined to mean a necessary course 
of treatment, including follow-up appointments and ancillary and 
specialty services, that lasts no longer than 60 days from the date of 
the first appointment with a non-VA health care provider under the 
Program. Section 101(h) of the Act states that VA must ensure that an 
eligible veteran receives hospital care or medical services, including 
follow up care, ``for a period not exceeding 60 days.'' If an eligible 
veteran requires care beyond 60 days, and either the veteran continues 
to qualify for the Program based on residence or if VA cannot schedule 
an appointment with the veteran within the wait-time goals of the 
Veterans Health Administration, we will contact the veteran before the 
60 days have expired to determine if the veteran would like to continue 
receiving care from the non-VA health care provider. If the veteran 
does, VA will issue a new authorization for up to another 60 days.
    A ``health-care plan'' has the same definition as provided in 
section 101(e)(4) of the Act. The Act defines a health-care plan as an 
insurance policy or contract, medical or hospital service agreement not 
administered by VA, under which health services for individuals are 
provided, or the expenses of such services are paid, except that it 
does not include any such policy, contract, agreement, or similar 
arrangement under the Medicare or Medicaid programs or TRICARE.
    A ``residence'' is defined as a legal residence or personal 
domicile. A residence cannot be a post office box or non-residential 
point of delivery, because the address of the place a veteran resides 
is used to determine

[[Page 65575]]

eligibility under Sec. Sec.  17.1510(b)(2)-(4). Sections 101(b)(2)(B)-
(D) of the Act define eligibility based upon travel distance between a 
person's residence and a VA medical facility, and the regulatory 
definition recognizes that a post office box or other non-residential 
point of delivery could not be used to assess that eligibility 
criterion. However, we have added that a residence may be ``seasonal,'' 
and consequently, a veteran may maintain more than one residence, but 
only one residence at a time. Therefore, if a veteran lives in more 
than one location during a year, the veteran's residence is the 
residence or domicile where the person is staying at the time the 
veteran wants to receive hospital care or medical services through the 
Program. For example, if a veteran lived in New Hampshire during the 
summer months but in Florida during the winter months, and the veteran 
was seeking care in January, the veteran's residence in Florida would 
be used as the basis for determining his or her eligibility. Allowing 
for seasonal or multiple residences recognizes Congressional intent to 
reach, through the Program, those veterans who have geographical 
challenges in reaching a VA medical facility, without authorizing the 
use of Program funds for individuals who in fact are living near a VA 
medical facility at the time that they need an appointment. Homeless 
veterans currently provide an address to VA that is recorded in the 
Veterans Health Information Systems and Technology Architecture 
(VistA); this address is used for other VHA benefits and may be applied 
to veterans seeking to participate in the Program as well. For example, 
any homeless veteran who is residing in a place supported by a 
Department of Housing and Urban Development (HUD)-VA Supportive Housing 
(VASH) voucher can list that address, and any veteran using one of our 
community-based programs like the Homeless Grant and Per Diem or Health 
Care for Homeless Veterans programs can supply the address of the 
service provider.
    The term ``schedule'' is defined to mean identifying and confirming 
a date, time, location, and entity or health care provider for an 
appointment, as the term appointment has been previously defined.
    A ``VA medical facility'' is defined as a VA hospital, a VA 
community-based outpatient clinic (CBOC), or a VA health care center. 
We have included these types of VA facilities because they provide 
medical care or hospital services that may be provided as part of the 
Program. This is consistent with the phrase ``medical facility of the 
Department,'' as used in the Act in section 101(b)(2)(B) and elsewhere. 
Vet Centers, or Readjustment Counseling Service Centers, are not 
considered a VA medical facility because they do not furnish hospital 
care or medical services.
    The term ``wait-time goals of the Veterans Health Administration'' 
is defined to mean, unless changed by further notice in the Federal 
Register, a date that is not more than 30 days from either the date 
that an appointment is deemed clinically appropriate by a VA health 
care provider, or if no such clinical determination has been made, the 
date a veteran prefers to be seen by a health care provider capable of 
furnishing the hospital care or medical services required by the 
veteran. In the event a VA health care provider identifies a time range 
when care must be provided (e.g., within the next 2 months), VA will 
use the last clinically appropriate date for determining whether or not 
such care is timely. Section 101(s)(1) of the Act defines the wait-time 
goals of the Veterans Health Administration as being ``not more than 30 
days from the date on which a veteran requests an appointment for 
hospital care or medical services from [VA].'' However, section 
101(s)(2) authorizes VA to identify a different wait-time goal by 
submitting a report to Congress within 60 days of the enactment of the 
Act, and publishing that goal in the Federal Register and on a public 
Web site. On October 3, 2014, VA exercised this option and submitted a 
report to Congress; on October 17, 2014, VA published in the Federal 
Register, and posted notice on its Web site that it is adopting the 
definition contained in this regulation. 79 FR 65219. This definition 
ensures that clinical considerations and the preferences of the veteran 
are taken into account. In some cases, the date that a veteran prefers 
to be seen for an appointment may be the date on which the veteran 
contacts VA for an appointment. In other situations, though, the date 
the veteran prefers to receive hospital care or medical services may 
not be for some time, such as if the veteran is traveling, or if the 
veteran would prefer to delay care. Defining ``wait-time goals of the 
Veterans Health Administration'' to include a determination that an 
appointment is clinically appropriate acknowledges the primary reason 
for the appointment--to provide clinically appropriate care. For 
example, a VA health care provider may determine that a veteran needs 
to be seen, but that such a visit would not be clinically useful until 
a certain time has passed (e.g., 2 months from the current 
appointment). This is a common scenario in the delivery of health care 
across the industry. In such a scenario, the wait-time goals of the 
Veterans Health Administration will be within 30 days of the date 
identified by a VA health care provider as clinically appropriate, even 
if the veteran requests to schedule the appointment immediately. In the 
event a VA health care provider identifies a time range when care must 
be provided (e.g., within the next 2 months), VA will use the last 
clinically appropriate date for determining whether or not such care is 
timely. For example, if a provider determines that a Veteran should be 
seen in October, VA will use October 31 as the clinically appropriate 
date. If no such clinical determination has been made, utilizing the 
preferred date of an appointment, rather than the date the veteran 
contacted VA, better reflects veterans' preferences for when they want 
to receive care. A veteran can specify any date, including the date the 
veteran contacts VA, as the preferred date for an appointment. The 30-
day period established by this standard would begin on that preferred 
date.
    VA believes that it may be necessary to make further revisions to 
its standards for the Program in the future. Specific metrics may 
evolve over time, and the prescribed methods of measurement today may 
not provide a full picture of veterans' experience in accessing health 
care in the future. VA has contracted with the Institute of Medicine to 
independently identify metrics that may be the basis for further 
changes to this standard. VA will carefully evaluate any 
recommendations from the Institute of Medicine or other sources and 
determine the most appropriate means of addressing or changing the 
standard, if warranted. Any such changes to the goals will be 
communicated through a report to Congress, an update to VA's Web site, 
and a publication in the Federal Register.

Section 17.1510 Eligible Veterans

    VA will determine a veteran's eligibility to elect to receive non-
VA care through the Program using a two-step process, consistent with 
the Act's structure and the requirements in section 101(b).
    First, the veteran must have enrolled in the VA health care system 
under 38 CFR 17.36 on or before August 1, 2014, or the veteran must be 
eligible for hospital care and medical services under 38 U.S.C. 
1710(e)(1)(D) and be a veteran described in 38 U.S.C.

[[Page 65576]]

1710(e)(3). These requirements are consistent with the standards 
established in sections 101(b)(1)(A)-(B) of the Act, and are included 
in Sec. Sec.  17.1510(a)(1)-(2). If a veteran meets either of these 
requirements, the veteran then must also meet a criterion described in 
Sec.  17.1510(b), and must provide the information required by Sec.  
17.1510(d).
    Under Sec.  17.1510(b)(1), a veteran is eligible if the veteran 
attempts, or has attempted, to schedule an appointment with a VA health 
care provider, but VA has been unable to schedule an appointment for 
the veteran within the wait-time goals of the Veterans Health 
Administration. As these terms are defined, this would mean that VA is 
unable to identify a particular date, time, location, and entity or 
health care provider within 30 days of the date that the appointment 
was deemed clinically necessary by a VA health care provider, or, if no 
such clinical determination has been made, the date that a veteran 
prefers to be seen by a health care provider capable of furnishing the 
hospital care or medical services required by the veteran. This is 
consistent with the requirements in the Act at section 101(b)(2)(A).
    Under Sec.  17.1510(b)(2), a veteran is eligible if the veteran 
resides more than 40 miles from the VA medical facility that is closest 
to the veteran's residence. This standard considers the distance 
between a veteran's residence, as defined in Sec.  17.1505, and any VA 
medical facility, even if that facility cannot provide the care that 
the veteran requires. For example, if a veteran needs cardiac care and 
lives 10 miles from a VA community-based outpatient clinic (CBOC) that 
only offers primary care and mental health care, but 50 miles from a VA 
medical facility that offers cardiac care, the veteran would not be 
eligible based on his or her proximity to the CBOC. This interpretation 
is consistent with the plain language of the Act, which refers only to 
``the medical facility of the Department that is closest to the 
residence of the veteran,'' without allowing VA to consider whether the 
facility can actually provide the care needed by the veteran. Sec. 
101(b)(2)(B), Public Law 113-146, 128 Stat. 1754. Additionally, the 
Conference Report accompanying the legislation states that veterans are 
eligible if they live ``within 40 miles of a medical facility,'' again 
without regard to such facility's ability to provide the required care. 
H.R. Rpt. 113-564, p. 55. The use of the general article ``a'' 
demonstrates that Congress intended for this to refer to any facility, 
rather than to a specific facility. Nothing in the Act modifies or 
precludes VA from using its existing statutory authorities to furnish 
non-VA care, such as under 38 U.S.C. 1703, 1725, 1728, 8111, or 8153. 
Those statutes and their implementing regulations continue to apply, 
and VA will use those authorities as appropriate to ensure that 
veterans are able to access care.
    Under Sec.  17.1510(b)(3), a veteran is eligible if the veteran's 
residence is in a state without a full-service (meaning that it 
provides, on its own and not through a joint venture, hospital care, 
emergency medical services, and surgical care having a surgical 
complexity of standard) VA medical facility and the veteran lives more 
than 20 miles from such a facility. This language is consistent with 
the requirements in section 101(b)(2)(C) of the Act. As of the 
publication of this rule, veterans in three states would qualify under 
this standard: Alaska, Hawaii, and New Hampshire. No veteran residing 
in Alaska or Hawaii lives within 20 miles of a full-service VA medical 
facility in another state, but some veterans residing in New Hampshire 
do live within 20 miles of a full-service VA medical facility that is 
located in a bordering state. We note that this specific, special 
eligibility for veterans in states without full-service VA medical 
facilities further supports our view that the Act requires VA to find 
veterans ineligible who live within 40 miles of a VA medical facility, 
even if such facility cannot provide the specific care required. When 
read as a whole, the Act specifically addresses the ability of a 
facility to provide care only in section 101(b)(2)(C). We believe that, 
in addition to the arguments presented earlier in this rulemaking, the 
legislative specificity in section 101(b)(2)(C) underscores the absence 
of reference to this issue in section 101(b)(2)(B) of the Act.
    As noted previously when discussing the definition of residence, a 
veteran's residence may change throughout the year but the veteran's 
residence at the time he or she wants to schedule an appointment will 
determine his or her eligibility under this paragraph. In the prior 
example we presented, a veteran who resides in New Hampshire in the 
summer and in Florida in the winter may be eligible under this 
paragraph during the summer months, but not during the winter.
    We also note that the term ``surgical complexity of standard,'' 
used in Sec.  17.1510(b)(3)(i) and section 101(b)(2)(C)(i)(III) of the 
Act, is a term of art coined by VA to describe the operative complexity 
of each VA medical facility with an inpatient surgical program. The 
designation of a VA medical facility's surgical complexity as 
``standard'' is used by VA to establish infrastructure requirements and 
compliance with VA quality standards. A ``standard'' designation refers 
to a VA facility that has the appropriate infrastructure to provide at 
least the most basic forms of surgical care. VA has published a list of 
VA medical facilities complying with at least a standard level of 
surgical care on the following Web site: www.va.gov/health/surgery. VA 
will post notice on this Web site of any changes to this list of 
facilities.
    Finally, under paragraph (b)(4) of this section, a veteran who 
resides in a location other than one in Guam, American Samoa, or the 
Republic of the Philippines that is 40 miles or less from a VA medical 
facility can be eligible under two scenarios. First, if the veteran 
must travel by air, boat, or ferry to reach such a VA medical facility, 
the veteran is eligible for non-VA care under the Program. This is 
consistent with the text in sections 101(b)(2)(D)(i) and (ii)(I) of the 
Act. Second, veterans who reside 40 miles or less from a VA medical 
facility are eligible if they face an unusual or excessive burden in 
accessing such a facility due to geographical challenges. Sec. 
101(b)(2)(D)(ii)(II), Public Law 113-146, 128 Stat. 1754. VA has 
interpreted this standard through regulation so that if the veteran's 
travel to the nearest VA medical facility is impeded by the presence of 
a body of water (including moving and still water) or a geologic 
formation that cannot be crossed by road, the veteran is eligible for 
non-VA care under the Program. VA believes that the emphasis on a 
geographical challenge as referring only to naturally occurring 
permanent or semi-permanent conditions is consistent with the plain 
meaning of the Act. While VA is able to take into account other 
factors, such as traffic or weather conditions or the veteran's health, 
when making determinations regarding beneficiary travel benefits 
provided under 38 CFR part 70, the Act does not provide us the 
authority to apply these or similar factors in operating the Program 
because it specifically limits eligibility to geographical challenges 
without allowing for environmental or circumstantial challenges.
    Under paragraph (c) of this section, a veteran who changes his or 
her residence and is participating in the Choice Program must update VA 
about the change within 60 days. A veteran's residence may be the basis 
for his or her eligibility for the Program under paragraphs (b)(2)-
(b)(4) of this section, so it is essential that VA have current and 
accurate information to make an

[[Page 65577]]

eligibility determination. Veterans who are eligible based on being 
unable to be seen within the wait-time goals of the Veterans Health 
Administration must also provide this information so VA can determine 
if they would become eligible based on residence. It is also important 
that VA have accurate information about a veteran's residence to ensure 
we can contact a veteran regarding any issues and for billing purposes. 
We believe that 60 days is an appropriate period of time, as it will 
allow veterans sufficient opportunity to submit this information while 
ensuring that VA has the ability to make accurate determinations about 
eligibility for the Program.
    In addition to meeting the eligibility criteria under paragraphs 
(a) and (b) of this section, a veteran must also provide to VA 
information about any health-care plan under which the veteran is 
covered. Section 17.1510(d) requires that a veteran provide this 
information to be able to receive authorized non-VA care through the 
Program. This is consistent with the requirement in the Act in section 
101(e)(1), which states that before a veteran can receive hospital care 
or medical services under the Program, the veteran must provide 
information about other health insurance. Section 17.1510(d) requires a 
veteran to submit information and updated information to VA within 60 
days if the veteran changes health-care plans. We believe that 60 days 
is an appropriate period of time, as it will allow veterans sufficient 
time to submit this information while ensuring that VA has the ability 
to provide accurate information to eligible entities and providers 
under the Program.
    Under Sec.  17.1510(e), VA will calculate distance between a 
veteran's residence and the nearest VA medical facility using a 
straight-line distance, rather than the driving distance. The 
Conference Report accompanying the final bill provides strong support 
for this interpretation, as it states, ``In calculating the distance 
from a nearest VA medical facility, it is the Conferees' expectation 
that VA will use geodesic distance, or the shortest distance between 
two points.'' H.R. Rpt. 113-564, p. 55. The shortest distance between 
two points is a straight line, so a veteran who is outside of a 40 mile 
radius of a VA medical facility would be eligible under this provision. 
VA understands that actual travel distances may be longer than 40 miles 
for some veterans who reside within the 40 mile radius based on the 
layout of roads or other factors, and to the extent that such travel is 
due to geographic challenges, these veterans may be eligible for the 
Program under Sec.  17.1510(b)(4). These veterans may also be eligible 
to receive non-VA care under another authority.

Section 17.1515 Authorizing Non-VA Care

    Section 17.1515 describes the process and requirements for 
authorizing non-VA care under this Program.
    Paragraph (a) states that eligible veterans may choose between 
scheduling an appointment with a VA health care provider, being placed 
on an electronic waiting list for a VA appointment, or receiving 
authorized non-VA hospital care or medical services from an eligible 
entity or provider. Section 101(c) of the Act provides that eligible 
veterans can make an election to have the Secretary schedule an 
appointment for the veteran with a VA health care provider, place him 
or her on an electronic waiting list, or authorize non-VA care. If a 
veteran elects to receive VA care and VA is able to schedule an 
appointment for the veteran, even if such an appointment is outside of 
the wait-time goals of the Veterans Health Administration or is at a 
facility more than 40 miles from the veteran's residence, we will do 
so. Otherwise, we will place a veteran who elects to receive VA care on 
an electronic waiting list. We will continue to track and report the 
average length of time an individual must wait for an appointment, 
disaggregated by medical facility and type of care or services needed. 
We will provide this facility-level information at the time the veteran 
makes his or her choice so the veteran can make an informed election 
about whether to receive hospital care or medical services from a VA or 
non-VA health care provider. Sections 101(c)(1)(A) and (c)(2) require 
VA to schedule an appointment for a veteran or place the veteran on an 
electronic waiting list, which must be available to determine the place 
of an eligible veteran on the waiting list and to determine the average 
length of time an individual spends on a waiting list, disaggregated by 
medical facility and type of care or services needed. The Act clearly 
specifies that this information must be provided ``for purposes of 
allowing such eligible veteran to make an informed election.'' Sec. 
101(c)(2)(B), Public Law 113-146, 128 Stat. 1754. Additionally, if the 
veteran elects to receive care from a non-VA health care provider, VA 
will notify the veteran by the most effective means available, as 
identified by the veteran, of the scope of the authorization for care, 
thereby complying with the requirements of section 101(c)(1)(B)(ii).
    Section 17.1515(b) states that eligible veterans may specify a 
particular non-VA entity or health care provider from whom they wish to 
receive care, if the entity or health care provider is eligible under 
Sec.  17.1530. Section 101(a)(2) of the Act establishes that veterans 
who are eligible for the Program based upon the wait-time standard have 
the right to select the specific health care provider they wish to see, 
so long as the provider is eligible under the Act and under Sec.  
17.1530. The Act does not address whether or not veterans who are 
eligible based upon residence may select a particular non-VA provider. 
VA is filling this gap in the law by providing these veterans the same 
opportunity to select a particular provider as veterans eligible based 
upon the wait-time standard. Eligible veterans may nevertheless choose 
not to make such a selection, and in such a situation, those veterans 
will be referred to an eligible entity or provider identified by VA.

Section 17.1520 Effect on Other Provisions

    Section 17.1520 addresses the effect of the Program on other 
provisions and programs administered by VA. Paragraph (a) of this 
section provides that, generally, eligibility under the Program does 
not affect a veteran's eligibility for hospital care or medical 
services under the medical benefits package or other benefits addressed 
in part 17. If particular services, such as health care for newborns of 
veterans under 38 CFR 17.38(a)(xiv) and dental benefits under 
Sec. Sec.  17.160-17.169, have unique eligibility standards, only 
veterans who are eligible under Sec.  17.1510 and meet the eligibility 
standards for those services can elect to receive non-VA care for them. 
Nothing in the Act or these regulations waives the eligibility 
requirements established in other statutes or regulations.
    The regulation also provides that notwithstanding any other 
provision of this part, VA will cover prescription medications and 
other prescriptions made while furnishing hospital care or medical 
services through the Program. This is consistent with section 
101(a)(1)(A) of the Act, which requires VA to furnish medical services 
to eligible veterans under the Program, and with 38 U.S.C. 1710. VA 
fills emergency prescriptions written by non-VA health care providers, 
but does not normally fill prescriptions written by non-VA providers 
when veterans receive authorized non-VA care. However, we interpret the 
requirement in section 101 to furnish hospital care and medical 
services to include these benefits. The terms ``hospital care'' and 
``medical services'' are defined through the medical benefits package 
at 38 CFR

[[Page 65578]]

17.38, which specifically includes prescription drugs, including over-
the-counter drugs and medical and surgical supplies available under the 
VA national formulary system. 38 CFR 17.38(a)(1)(iii). Veterans 
receiving care under the Program are eligible because they either could 
not be seen within the wait-time goals of the Veterans Health 
Administration or because of their place of residence. Typically, VA 
requires veterans to visit a VA medical facility so one of our 
providers can establish that the prescription is medically needed and 
appropriate for the patient. Imposing such a requirement on veterans 
eligible under the Program would not make sense because their 
eligibility is predicated on either being unable to be seen within a 
timely manner or because of difficulties they face in traveling to a VA 
medical facility. We believe this decision is consistent with section 
101(r) of the Act, which states that nothing in section 101 shall be 
construed to alter the process for filling and paying for prescription 
medications. This regulation does not alter how prescriptions are 
filled or purchased. VA will pay for prescriptions, including 
prescription drugs, over-the-counter drugs, and medical and surgical 
supplies prescribed by eligible entities and providers under the 
Program. However, VA will only pay for those items that are on the VA 
National Formulary, in accordance with Sec.  17.38(a)(1)(iii), and 
eligible veterans will be charged a VA copayment, if applicable, as 
with all other care and services offered under the Program. If 
prosthetics are prescribed as part of the care that is provided under 
the Program, VA will pay for these items as well.
    Section 17.1520(b) states that VA will be liable for any 
deductibles, cost-shares, or copayments required by the health-care 
plan of an eligible veteran participating in the Program and owed to 
the non-VA provider, to the extent that such reimbursement does not 
result in expenditures by VA for the furnished care or services that 
exceed the rates determined under Sec.  17.1535. Currently, non-VA 
providers who accept VA payments for hospital care or medical services 
must accept VA payment as payment in full and cannot assess any 
additional charges. 38 CFR 17.55 and 17.56. By contrast, VA is a 
secondary payer under the Program for care and services related to a 
nonservice-connected disability. Under section 101(e)(3)(B)(ii) of the 
Act, VA is authorized to pay the cost of care or services that is not 
covered by a veteran's health-care plan, except that VA's payment may 
not exceed the rate established under Sec.  17.1535. We interpret 
section 101(e)(3)(B)(ii) to authorize VA to cover the balance due the 
non-VA provider after any payment by the veteran's health-care plan and 
any payment made by the veteran, and to be liable for any copayments, 
cost-shares, or deductibles required of the veteran by the other 
health-care plan, up to the amount established under Sec.  17.1535.
    Under the Program, the non-VA provider is responsible for first 
billing the veteran's other health-care plan, if the care provided 
under the Program is related to a nonservice-connected disability. Any 
payment made by a health-care plan to the non-VA provider reduces the 
amount owed by VA as the secondary payer. If the balance due to the 
non-VA provider, after any payment by the veteran's health-care plan 
and any payment by the veteran, is less than the rate established under 
Sec.  17.1535, VA will, consistent with its authority in section 
101(e)(3)(B)(ii), cover the veteran's copayments, cost-shares, or 
deductibles required by the health-care plan. If the veteran paid any 
such costs to the non-VA provider, VA will reimburse the veteran for 
the paid costs.
    To the extent the amount contributed by the health-care plan would 
cover the veteran's VA copayment obligation, VA will apply that amount 
to reduce the veteran's VA copayment obligation as determined under 
Sec. Sec.  17.108, 17.110, and 17.111. In some instances, though, 
veterans will still owe a VA copayment. As is currently the case, to 
the extent the veteran qualifies for a hardship exemption or a waiver 
of that debt under Sec. Sec.  17.104 or 17.105, the veteran may seek 
such relief. VA is establishing a hotline, 1-866-606-8198, that 
veterans and health care providers can call with questions about 
payments and liabilities.
    Paragraph (c) of this section addresses the beneficiary travel 
program administered under 38 CFR part 70. This paragraph provides that 
veterans who are eligible for beneficiary travel under part 70 will be 
reimbursed for travel to and from the location of the eligible entity 
or provider who furnishes hospital care or medical services for an 
authorized appointment under the Program, even if there is another non-
VA health care provider that is closer. Current regulations governing 
the beneficiary travel program at 38 CFR 70.30(b)(2) provide that VA 
will pay mileage reimbursement for travel between a beneficiary's 
residence and the closest non-VA health care provider that could 
furnish such care. For veterans who have the right to select a provider 
of their own choice under Sec.  17.1515(b), they may select a provider 
who is slightly farther away from their residence than another non-VA 
provider who could furnish the same care. For veterans who elect non-VA 
care, VA may schedule an appointment with an eligible non-VA entity or 
provider that is farther away because that non-VA provider can see the 
veteran sooner. We believe that it is fair and consistent to provide 
mileage reimbursement in these instances. VA has authority under 38 
U.S.C. 111(b)(2) to define the parameters under which it will reimburse 
eligible veterans for travel expenses, and VA is exercising that 
authority here to help veterans who obtain non-VA care through the 
Program access non-VA health care entities and providers. Hence, Sec.  
17.1520(c) waives the requirements of 38 CFR 70.30(b)(2) for purposes 
of the Program.

Section 17.1525 Start Date for Eligible Veterans

    Section 17.1525 defines when eligible veterans may begin receiving 
hospital care and medical services through the Program. VA is phasing 
in implementation of the Program for different categories of eligible 
veterans to ensure that VA has the resources in place to support care 
for these veterans. Paragraph (a) of this section identifies the start 
date for eligible veterans based on which criterion in Sec.  17.1510(b) 
they meet. In paragraph (a)(1) of this section, veterans who are 
eligible based on their place of residence under 17.1510(b)(2) through 
(b)(4) will be able to start receiving hospital care and medical 
services on the date of publication of this rule. We are starting with 
this population because it is more easily identified and less subject 
to change over time than those who are eligible based on being unable 
to be seen within the wait-time goals of the Veterans Health 
Administration. Veterans eligible under 17.1510(b)(1) will be able to 
start receiving hospital care and medical services no later than 
December 5, 2014. Paragraph (b) of this section states that 
notwithstanding the dates identified in paragraph (a), VA may publish a 
Notice in the Federal Register informing the public that veterans may 
receive care sooner. This will ensure VA has flexibility so that if we 
determine we have the necessary resources in place to furnish care, we 
can begin doing so without further delay.

Section 17.1530 Eligible Entities and Providers

    Section 17.1530 defines requirements for non-VA entities and health 
care providers to be eligible to be reimbursed

[[Page 65579]]

for furnishing hospital care and medical services to eligible veterans 
under the Program. Paragraph (a) of this section provides that an 
entity or provider must be accessible to the veteran and be one of the 
four entities specified in section 101(a)(1)(B) of the Act. These 
include any health care provider that is participating in the Medicare 
program under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.), including any physician furnishing services under such program; 
any Federally-qualified health center (as defined in section 
1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B)); 
the Department of Defense; or the Indian Health Service. Outpatient 
health programs or facilities operated by a tribe or tribal 
organization under the Indian Self-Determination and Education 
Assistance Act or by an urban Indian organization receiving funds under 
title V of the Indian Health Care Improvement Act are defined as 
Federally-qualified health centers in section 1905(l)(2)(B) of the 
Social Security Act and would be eligible providers under section 
101(a)(1)(B).
    Additionally, the entity or provider must not be a part of, or an 
employee of, VA, or if the provider is an employee of VA, he or she 
cannot be acting within the scope of such employment while providing 
hospital care or medical services through the Program. Many of VA's 
health care providers are also appointed to other institutions, so if 
these health care providers are furnishing care under this Program, 
they must be doing so on non-Department time and using non-VA 
resources. The Act specifically envisions that care under the Program 
is provided by non-VA resources, as demonstrated by section 101(a)(3) 
of the Act, which requires VA to coordinate through the Non-VA Care 
Coordination Program the furnishing of care and services under this 
Program. Furthermore, non-VA care is a general term applied throughout 
VA to refer to any care furnished by a non-VA entity or health care 
provider under any authority or agreement. The title of section 101 of 
the Act, ``Expanded availability of hospital care and medical services 
for veterans through use of agreements with non-Department of Veterans 
Affairs entities,'' also clearly demonstrates Congress's intent that 
any entity or provider that is a VA resource should not be eligible to 
participate in the Program.
    Under Sec.  17.1530(b), an entity or provider must enter into an 
agreement with VA to provide non-VA hospital care or medical services 
under the Program. This requirement is consistent with section 
101(a)(1)(A) of the Act. This section of the Act also authorizes VA to 
use agreements reached before the enactment of the Act, so long as such 
agreement is with an eligible entity or provider as defined in section 
101(a)(1)(B) of the Act. Agreements may be formed by contract, 
intergovernmental agreement, or a provider agreement, consistent with 
section 101(d)(1)(B) of the Act. Each form of agreement must be 
executed by a duly authorized Department official to ensure that 
Federal resources are being committed by a person with the authority to 
do so. As an operational matter, VA will, to the maximum extent 
practicable and consistent with the requirements of section 101, use 
existing sharing agreements, existing contracts, and other processes 
available at VA medical facilities prior to using provider agreements 
under this section. This is consistent with the requirements of section 
101(d)(1)(A), as modified by section 409 of Public Law 113-175.
    Paragraph (c) of Sec.  17.1530 defines whether an entity or 
provider is accessible to a veteran. Under section 101(a)(2) of the 
Act, a veteran who is eligible for the Program based on being unable to 
schedule an appointment within the wait-time goals of the Veterans 
Health Administration can only select an entity or provider that is 
accessible to the veteran. The broad intent of the Act is to ensure 
that veterans are able to be seen quickly and close to their home. The 
Act did not contemplate, for example, that a veteran living in New York 
would have his or her care in California and travel paid for by VA. 
Under the Act, this accessibility requirement technically only applies 
to veterans who are eligible based on being unable to be seen within 
the wait-time goals of the Veterans Health Administration. However, we 
believe the same standard should apply when any eligible veteran elects 
to receive non-VA care under the Program because it would be unfair to 
impose an accessibility requirement to limit the non-VA entities and 
providers available to some veterans but not others. Also, in those 
situations when a veteran does not select a provider, it would be 
inconsistent with the purpose of the Act if VA were able to select a 
non-VA provider who was inaccessible to veterans whose basis for 
eligibility is their residence. The factors identified in Sec.  
17.1530(c)(1)-(3) are intended to ensure that, as often as possible, 
veterans are able to access the care they need from an entity or 
provider that can see them quickly and that is at least as close as the 
nearest VA medical facility.
    VA will consider several factors when determining whether an entity 
or provider is accessible. Under Sec.  17.1530(c)(1), VA will consider 
the length of time an eligible veteran would have to wait to receive 
hospital care or medical services. One of the principal issues the Act 
was intended to address was extended wait times for hospital care and 
medical services in VA facilities. Senate Veterans' Affairs Committee 
Chairman Sanders explained the purpose of the Program shortly before 
the Senate passed an early version of this bill by saying, ``this 
legislation says to veterans that if there are long wait times, if they 
cannot get into a facility in a reasonable time, they can go out 
outside of . . . VA.'' See 160 Cong. Rec. S3591 (June 11, 2014). By 
considering the length of time a veteran would have to wait to receive 
hospital care or medical services from a non-VA entity or provider, VA 
can ensure that veterans receive care as quickly as possible. If a 
veteran selects a provider who cannot see the veteran for several 
months, VA would probably determine that provider was inaccessible. 
Alternatively, under this standard, there may be several eligible 
entities or providers who could provide care more quickly than VA 
could, and in such a situation, in those instances when an eligible 
veteran does not specify a particular eligible entity or provider, VA 
could select the eligible entity or provider that is able to schedule 
the earliest appointment for the eligible veteran.
    Under Sec.  17.1530(c)(2), VA will consider the qualifications of 
the entity or provider to furnish the hospital care or medical services 
the veteran requires. If an entity or provider does not have the 
expertise or equipment necessary to provide the required care or 
services, the needed care is not accessible from that provider, and VA 
will not authorize a patient to receive hospital care or medical 
services from that entity or provider. This will ensure that veterans 
have access to, and can receive, the care they need and that 
appropriated resources are spent only for services that actually can be 
delivered.
    Under Sec.  17.1530(c)(3), VA will consider the distance between 
the eligible veteran's residence and the entity or provider. Three of 
the four bases for eligibility under the Program focus on the residence 
of the veteran, and therefore we believe that travel distance was a 
clear concern and focus of the Act. If a veteran has to travel long 
distances to receive care, then these non-VA providers may be no more 
accessible than a VA medical facility that is more than 40 miles away 
from the veteran's residence.

[[Page 65580]]

    VA will consider these factors together. Sometimes, there may be 
several eligible entities or providers that could deliver care close to 
the veteran's residence, and in such a scenario, distance likely will 
not matter. In other situations, there may only be one provider near 
the veteran's residence, but this provider either has extended wait 
times or lacks the expertise or equipment to provide the necessary 
care. VA will need to balance these competing interests and the 
preference of the veteran to determine whether or not an entity or 
provider is accessible. We will also make accessibility determinations 
on a case-by-case basis, considering each veteran's specific needs and 
ability to travel, as well as changes in the status of a non-VA entity 
or provider. For example, VA might find a health care provider 
inaccessible to a veteran in one month because the provider cannot see 
new patients in a timely manner or because the provider lacks the 
qualifications to treat a particular condition. But the following 
month, VA might find that same health care provider accessible to the 
same veteran because the provider's wait time has decreased or the 
provider has gained expertise through a newly hired health care 
provider.
    Under Sec.  17.1530(d), a non-VA provider must maintain at least 
the same or similar credentials and licenses as required by VA of its 
own providers. This requirement is codified in section 101(i)(1) of the 
Act, which also provides further support for the qualification standard 
in paragraph (c)(2) of this section. The agreement VA reaches with the 
non-VA entity or provider will clarify the requirement referenced in 
Sec.  17.1530(d). These requirements will be the same or similar to the 
requirements included in VA policy and are also available through 
Veterans Health Administration (VHA) Handbook 1100.19 and VHA Directive 
2012-030, available online at: http://www.va.gov/vhapublications/. Non-
VA health care entities or providers must submit verification of this 
information to VA at least once per 12-month period to continue to 
remain eligible under this Program. This requirement is consistent with 
section 101(i)(2) of the Act.
    For purposes of the Program, qualifications of non-VA providers 
will be set forth in the terms of the agreement with VA, but, in 
accordance with the Act, those terms must specify requirements that are 
``at least the same or similar credentials and licenses'' as those 
required of VA providers. Sec. 101(i)(1), Public Law 113-146, 128 Stat. 
1754. We also note that to the extent there may be concerns about the 
qualifications of a particular provider, section 101(a)(1)(B) of the 
Act requires that eligible entities and providers of non-VA care must 
either be Federal providers themselves (the Department of Defense or 
the Indian Health Service), a Federally-qualified health center, or be 
a participating provider in the Medicare program. Accordingly, these 
non-VA entities and providers have already met quality standards 
established in Federal law.
    Entities are not required by the Act to maintain the same or 
similar credentials and licenses as VA providers because entities are 
not direct health care providers. Any entities that are eligible to 
provide care through the Program must ensure that any of their 
providers furnishing care and services through the Program meet these 
standards. If an eligible entity has more than one provider furnishing 
hospital care or medical services under this Program, the entity may 
submit the information required by paragraph (d) of this section on 
behalf of its providers. This will reduce the administrative 
responsibilities of each provider and VA by allowing for a consolidated 
submission of information.
    Although not addressed in the regulation, eligible entities and 
providers furnishing hospital care and medical services to eligible 
veterans through the Program, to the extent possible, should submit 
medical records back to VA in an electronic format. This will ensure 
that the veteran's medical record is as complete as possible to provide 
quality care in a timely manner. The agreements VA reaches with 
eligible entities and providers will clarify this requirement.

Section 17.1535 Payment Rates and Methodologies

    Section 17.1535 addresses payment rates and payment methodologies.
    Section 17.1535(a) addresses payment rates. This paragraph states 
that rates will be negotiated and set forth in an agreement between VA 
and an eligible entity or provider. This is consistent with sections 
101(d)(1)(A) and (d)(2)(A) of the Act.
    Section 17.1535(a)(1) establishes the default payment rule that 
reimbursement rates under the Program will not exceed the applicable 
Medicare rate under Title XVIII of the Social Security Act. This 
limitation is established in section 101(d)(2)(B)(i) of the Act.
    Section 17.1535(a)(2) states that VA may pay a rate higher than the 
default Medicare rate to an eligible entity or provider in a highly 
rural area, so long as such rate is still determined by VA to be fair 
and reasonable. A highly rural area is an area located in a county that 
has fewer than seven individuals residing in that county per square 
mile. This limited exception to the default Medicare rate is 
specifically contemplated, and narrowly circumscribed, by section 
101(d)(2)(B)(ii) of the Act. The limitation that such rate be 
determined by VA to be fair and reasonable is necessary to ensure that 
VA is committing and using budgetary resources appropriately.
    Section 17.1535(a)(3) addresses situations where there is no 
Medicare rate. As cited above, section 101(d)(2)(B) of the Act 
establishes that, except in highly rural areas, VA must pay the 
Medicare rate. However, there are certain types of care, such as 
obstetrics/gynecological and dental care, that are authorized by the VA 
medical benefits package in 38 CFR 17.38 but for which Medicare does 
not have established rates. The Act does not address the appropriate 
rate in such a situation. Because Congress did not address what rate 
can be paid when Medicare rates do not exist, we must fill the gap left 
by the law. See Chevron U.S.A., Inc. v NRDC, 467 U.S. 837, 842-843 
(1984).
    Under Sec.  17.1535(a)(3), VA follows the process and methodology 
outlined in specified paragraphs of 38 CFR 17.55 and 17.56, to the 
extent these paragraphs are consistent with the requirements of section 
101 of the Act, when there are no available rates as described in Sec.  
17.1535(a)(1). Sections 17.55 and 17.56 establish rates for payment for 
care provided to veterans by non-VA providers under different 
authorities than the Act. Paragraphs (g) and (k) of Sec.  17.55 
conflict with the Act and therefore are not applicable to payments made 
under the Program and would not be followed. Section 17.55(g), for 
example, states that payment by VA is payment in full, and the health 
care provider or agent may not impose any additional charge on a 
veteran or his or her health care insurer for any inpatient services 
for which payment is made by VA. This is inconsistent with sections 
101(e) and 101(j) of the Act, which, as discussed above, specifically 
require billing to a health-care plan and copayments by a veteran for 
services rendered. Section 17.55(k) states that VA will not pay more 
than the amount determined under paragraphs (a)-(j) of Sec.  17.55 or 
the negotiated amount, but Sec.  17.1535(a) already establishes a rate 
ceiling for payments made under the Program. Sections 17.55(j) and 
17.56(b) address payment for care furnished in Alaska, but section 101 
of the Act does not permit us to follow these rates. If the

[[Page 65581]]

Act is further modified by Congress to provide flexibility to pay 
different rates, VA will comply with the new statutory requirements and 
will follow any methodologies in Sec. Sec.  17.55 and 17.56 that are 
consistent with those requirements.
    Section 17.1535(b) details payment responsibilities. Section 
17.1535(b)(1) concerns payments for care related to a nonservice-
connected disability. VA defines a nonservice-connected disability 
consistent with 38 CFR 3.1(l). This longstanding VA definition is 
consistent with section 101(e)(3)(C) of the Act, as well as the use of 
that term in other VA programs. We believe that using this definition 
will result in the same outcomes as the definition presented in the Act 
and is more familiar to the VA staff who will be administering the 
Program. VA has defined the term ``nonservice-connected'' at 38 CFR 
3.1(l) to refer to a disability that was not incurred or aggravated in 
line of duty in the active military, naval, or air service. The 
Veterans Benefits Administration (VBA) is responsible for making 
determinations about whether a specific disability is service connected 
or not, and any disability that VBA has not identified as service 
connected is considered nonservice connected.
    When a veteran is seeking care for a nonservice-connected 
disability through the Program, the health-care plan of the eligible 
veteran, if one exists, is primarily responsible for paying the 
eligible entity or provider for authorized hospital care or medical 
services that are furnished to an eligible veteran. This is consistent 
with the requirements of section 101(e)(3)(A) of the Act. The health-
care plan is only responsible to the extent the care or services are 
covered by the health-care plan; this is again consistent with the 
language of section 101(e)(3)(A) of the Act. VA will be responsible for 
promptly paying only the amount that is not covered by the health-care 
plan, except VA cannot pay more than the rate determined under Sec.  
17.1535(a).
    Section 101(e)(3)(B) of the Act defines when VA is secondarily 
responsible for care. The Act states that the eligible entity or 
provider is responsible for seeking reimbursement for the cost of 
furnishing hospital care or medical services from the health-care plan 
of the veteran, if applicable, and VA is responsible for only paying 
for the VA-authorized service to the extent not covered by such health-
care plan. Under section 101(d)(2)(C) of the Act, an eligible entity or 
provider cannot collect more than the negotiated rate for the 
furnishing of care or services. If a veteran is required to make a VA 
copayment under section 101(j) of the Act and Sec.  17.1520(b) of this 
regulation, the copayment will be applied to the rate established by 
Sec.  17.1535(a). This will, in turn, reduce VA's ultimate liability.
    Paragraph (b)(2) of this section provides that if hospital care or 
medical services are being furnished for a service-connected disability 
or pursuant to 38 U.S.C. 1710(e), 1720D, or 1720E, VA is solely 
responsible for paying the eligible entity or provider for such 
hospital care or medical services. VA has defined the term ``service-
connected'' at 38 CFR 3.1(k) to mean, with respect to a disability, 
that such disability was incurred or aggravated in line of duty in the 
active military, naval, or air service. VA only has authority to 
recover or collect reasonable charges from a health-care plan when the 
care is being furnished for a nonservice-connected disability, so VA 
cannot collect such charges when service-connected care is involved. 38 
U.S.C. 1729. The Act is silent in terms of collecting payment for 
service-connected care, so VA believes its existing authorities should 
apply here. The three additional authorities cited, 38 U.S.C. 1710(e), 
1720D, and 1720E, are what VA refers to as special authorities, which 
require VA to furnish care based on certain conditions or exposures 
associated with military service. Excluding hospital care and medical 
services furnished under these authorities from liability by health-
care plans is consistent with VA's past practice and with the intent 
and language of section 101(e)(3) of the Act. VA is developing a 
separate rulemaking that would specifically restrict the ability of VA 
to collect charges from health-care plans for care provided under these 
special authorities. Both that proposed rulemaking and this rulemaking 
are consistent with current practice.
    Paragraph (c) of this section states that VA will only pay for 
hospital care or medical services authorized by VA. Accordingly, if in 
the course of providing authorized care or services under the Program, 
the eligible entity or provider determines that additional hospital 
care or medical services are necessary beyond what VA has authorized, 
the eligible entity or provider must contact VA for authorization prior 
to furnishing such care or services, in order for such care and 
services to be paid for by VA under the Program. Section 101(h) of the 
Act requires that, at the election of the veteran, VA must ensure that 
a veteran receives such hospital care or medical services through the 
completion of the episode of care, including all specialty and 
ancillary services deemed necessary as part of the recommended 
treatment. We believe that the language ``deemed necessary'' authorizes 
VA to make such determinations. This belief is supported by the 
Conference Report of the final bill, which stated, ``When coordinating 
care for eligible veterans through the Non-VA Care Coordination 
program, the Department should attempt to ensure when an appointment is 
authorized, the eligible veteran receives care within an appropriate 
time period, as defined by medical necessity as determined by the 
referring physician, or a mandatory time period established by the 
Secretary when the request for care is not initiated by a physician.'' 
H.R. Rpt. 113-564, p. 55, (emphasis added). In this context, the 
referring physician would be a VA health care provider. Furthermore, 
for non-VA care authorized under other statutes, VA must periodically 
review the necessity for continuing such care. 38 U.S.C. 1703(b). We 
interpret the language in section 101(h) of the Act to impose a similar 
obligation to ensure that VA has not entered into an open-ended 
commitment. VA will craft authorizations for non-VA care to ensure that 
veterans can receive the episode of care they need, including specialty 
and ancillary service, from eligible entities and providers. While some 
episodes of care may only involve a single visit, such as a specific 
procedure or test, others may involve multiple visits. VA will 
authorize only the care that it deems necessary as part of the 
treatment plan; if a non-VA health care provider believes that 
additional services are needed beyond 60 days or outside the scope of 
the initial course of treatment that was authorized, the health care 
provider must contact VA prior to administering such care to ensure 
that this care is authorized and therefore will be paid for by VA. 
These provisions are included so that veterans are not subjected to 
unapproved procedures and tests, and so that appropriated resources are 
not used for unapproved care or services.
    Also, there must be an actual encounter with a health care 
provider, who is either an employee of an entity in an agreement with 
VA or who is furnishing care through an agreement the health care 
provider has entered into with VA, and such encounter must occur after 
an election is made by an eligible veteran. The encounter may be 
virtual through use of telehealth or other technologies, but the health 
care provider must furnish hospital care or medical services during the

[[Page 65582]]

appointment. This will ensure that VA only pays for hospital care or 
medical services that were actually furnished, and is consistent with 
the Act's requirement in section 101(m) that the Department does not 
pay for care or services that were not furnished to an eligible 
veteran.

Section 17.1540 Claims Processing System

    Section 17.1540 provides general requirements for a VA claims 
processing system. This is required by section 101(k) of the Act. 
Paragraph (a) of this section establishes the claims processing system 
within the Chief Business Office of the Veterans Health Administration. 
This is required by section 101(k)(3) of the Act. The system will 
process and pay bills or claims for authorized hospital care and 
medical services furnished to veterans through the Program, as required 
by section 101(k)(1).
    Paragraph (b) of this section establishes responsibility for 
overseeing the system with the Chief Business Office of the Veterans 
Health Administration. Section 101(k)(3) requires this assignment of 
authority.
    Paragraph (c) of this section states that the system will receive 
requests for payment from eligible entities and providers for hospital 
care or medical services furnished to eligible veteran, and that the 
system will provide accurate and timely payments for claims received 
under the Program. This is required by section 101(k) and section 105 
of the Act.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds that there is good cause 
under 5 U.S.C. 553(b)(B) and (d)(3) to dispense with the opportunity 
for advance notice and opportunity for public comment and good cause to 
publish this rule with an immediate effective date. Section 101(n) of 
the Act requires publication of an interim final rule no later than 
November 5, 2014, the date that is 90 days after the date of the 
enactment of the law. We interpret this mandate to mean that, as a 
matter of law, it is impracticable and contrary to law and the public 
interest to delay this rule for the purpose of soliciting advance 
public comment or to have a delayed effective date.
    VA is making the rule effective for certain veterans prior to the 
usual 30 day delay for an interim final rule to allow VA to begin 
furnishing hospital care and medical services immediately to certain 
eligible veterans. Delaying implementation could result in delayed 
health care for these veterans, which could have unpredictable negative 
health effects.
    For the above reasons, the Secretary issues this rule as an interim 
final rule. However, VA will consider and address comments that are 
received within 120 days of the date this interim final rule is 
published in the Federal Register.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
interim final rulemaking, represents VA's implementation of its legal 
authority on this subject. Other than future amendments to this 
regulation or governing statutes, no contrary guidance or procedures 
are authorized. All existing or subsequent VA guidance must be read to 
conform with this rulemaking if possible or, if not possible, such 
guidance is superseded by this rulemaking.

Paperwork Reduction Act

    This interim final rule includes a collection of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) that requires 
approval by the Office of Management and Budget (OMB). Accordingly, 
under 44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking to 
OMB for review.
    OMB assigns a control number for each collection of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. Sections 17.1510(d), 17.1515, and 
17.1530 contain a collection of information under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3521). If OMB does not approve 
the collection of information as requested, VA will immediately remove 
the provisions containing a collection of information or take such 
other action as is directed by OMB.
    Comments on the collection of information contained in this interim 
final rule should be submitted to the Office of Management and Budget, 
Attention: Desk Officer for the Department of Veterans Affairs, Office 
of Information and Regulatory Affairs, Washington, DC 20503, with 
copies sent by mail or hand delivery to the Director, Regulation Policy 
and Management (02REG), Department of Veterans Affairs, 810 Vermont 
Avenue NW., Room 1068, Washington, DC 20420; fax to (202) 273-9026; or 
through www.Regulations.gov. Comments should indicate that they are 
submitted in response to ``RIN 2900-AP24--Expanded Access to Non-VA 
Care through the Veterans Choice Program.''
    A comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication. This does not affect the 
deadline for the public to comment on the rule.
    VA considers comments by the public on proposed collections of 
information in--
    <bullet> Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of VA, 
including whether the information will have practical utility;
    <bullet> Evaluating the accuracy of VA's estimate of the burden of 
the proposed collections of information, including the validity of the 
methodology and assumptions used;
    <bullet> Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
    <bullet> Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The amendments to title 38 CFR part 17 contain collections of 
information under the Paperwork Reduction Act of 1995 for which we are 
requesting approval by OMB. These collections of information are 
described immediately following this paragraph, under their respective 
titles.
    Title: Election to Receive Authorized Non-VA Care and Selection of 
Provider for the Veterans Choice Program.
    Summary of collection of information: Section 17.1515 requires 
eligible veterans to notify VA whether the veteran elects to receive 
authorized non-VA care through the Veterans Choice Program, be placed 
on an electronic waiting list, or be scheduled for an appointment with 
a VA health care provider. Section 17.1515(b)(1) also allows eligible 
veterans to specify a particular non-VA entity or health care provider, 
if that entity or provider meets certain requirements.
    Description of the need for information and proposed use of 
information: The information is required by the Act. Section 101(c) of 
Public Law 113-146 requires an eligible veteran to make an election to 
receive authorized non-VA care through the Veterans Choice Program, be 
placed on an electronic waiting list, or be scheduled for an 
appointment with a VA health care provider. Section 101(a)(2) 
authorizes certain eligible veterans to select a non-VA health care 
provider, and through regulation at Sec.  17.1515(b), all eligible 
veterans may

[[Page 65583]]

select a non-VA health care provider that is eligible under Sec.  
17.1530. This information is necessary because VA must know what the 
veteran's choice is and whom the veteran would like to see for an 
appointment.
    Description of likely respondents: Eligible veterans seeking 
authorization to receive non-VA care through the Veterans Choice 
Program.
    Estimated number of respondents per year: 440,794 eligible persons.
    Estimated frequency of responses per year: 12.64 times per year.
    Estimated average burden per response: 2 minutes.
    Estimated total annual reporting and recordkeeping burden: 185,721 
hours.
    Title: Health-Care Plan Information for the Veterans Choice 
Program.
    Summary of collection of information: Section 17.1510(d) requires 
eligible veterans to submit to VA information about their health-care 
plan to participate in the Veterans Choice Program.
    Description of the need for information and proposed use of 
information: The information is required by the Act. Section 101(e)(1) 
of Public Law 113-146 requires an eligible veteran to provide to the 
Secretary information on any health-care plan under which the eligible 
veteran is covered. This information is necessary because the veteran's 
other health-care plan is primarily responsible for paying for hospital 
care or medical services furnished through the Veterans Choice Program 
for a nonservice-connected disability.
    Description of likely respondents: Eligible veterans seeking 
authorization to receive non-VA care through the Veterans Choice 
Program.
    Estimated number of respondents per year: 440,794 eligible persons.
    Estimated frequency of responses per year: 1.2 times per year.
    Estimated average burden per response: 10 minutes.
    Estimated total annual reporting and recordkeeping burden: 88,159 
hours.
    Title: Submission of Medical Record Information under the Veterans 
Choice Program.
    Summary of collection of information: Participating eligible 
entities and providers are required to submit a copy of any medical 
record related to hospital care or medical services furnished under 
this Program to an eligible veteran.
    Description of the need for information and proposed use of 
information: The information is required by the Act. Section 101(l) of 
Public Law 113-146, as amended by section 409 of Public Law 113-175, 
requires VA to ensure that any health care provider that furnishes care 
or services under the Program to an eligible veteran submits to VA a 
copy of any medical record related to the care or services that were 
provided. This is necessary to ensure continuity of care for the health 
and well-being of the veteran.
    Description of likely respondents: Eligible entities and health 
care providers furnishing hospital care or medical services to eligible 
veterans through the Veterans Choice Program.
    Estimated number of respondents per year: 187,000 eligible persons.
    Estimated frequency of responses per year: 29.80 times per year.
    Estimated average burden per response: 5 minutes.
    Estimated total annual reporting and recordkeeping burden: 464,428 
hours.
    Title: Submission of Information on Credentials and Licenses by 
Eligible Entities or Providers.
    Summary of collection of information: Section 17.1530 requires 
eligible entities and providers to submit verification that the entity 
or provider maintains at least the same or similar credentials and 
licenses as those required of VA's health care providers, as determined 
by the Secretary.
    Description of the need for information and proposed use of 
information: The information is required by the Act. Section 101(i) of 
Public Law 113-146 requires non-VA entities or providers to maintain 
the same or similar credentials and licenses as those required of 
health care providers of the Department, as determined by the 
Secretary, and to submit not less than once per year verification of 
such licenses and credentials maintained by the health care provider. 
Under the interim final rule, an eligible entity may submit this 
information on behalf of its providers. This information is necessary 
to ensure that non-VA entities and providers who are furnishing 
hospital care and medical services to eligible veterans are meeting the 
same quality standards as VA health care providers.
    Description of likely respondents: Eligible entities or providers 
furnishing hospital care and medical services through the Veterans 
Choice Program.
    Estimated number of respondents per year: 187,000 eligible persons.
    Estimated frequency of responses per year: 1 time per year.
    Estimated average burden per response: 5 minutes.
    Estimated total annual reporting and recordkeeping burden: 15,583 
hours.
    VA is also developing a survey to understand veteran satisfaction 
with receipt of care under the Veterans Choice Program. The information 
is required by the Act. Section 101(q)(2)(D) of Public Law 113-146 
requires VA to report to Congress the results of a survey of eligible 
veterans who have received care or services under this Program on the 
satisfaction of such eligible veterans with the care or services they 
received. This information is necessary because VA must report this 
information to Congress, and this feedback will help VA better 
understand whether veterans like the Program. A separate notice will be 
published in the Federal Register providing more information about the 
planned veteran satisfaction survey.

Executive Orders 12866 and 13563

    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. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by the Office of 
Management and Budget (OMB), unless OMB waives such review, as ``any 
regulatory action that is likely to result in a rule that may: (1) Have 
an annual effect on the economy of $100 million or more or adversely 
affect in a material way the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities; (2) 
Create a serious inconsistency or otherwise interfere with an action 
taken or planned by another agency; (3) Materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs or the 
rights and obligations of recipients thereof; or (4) Raise novel legal 
or policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined that this is an economically significant regulatory 
action under Executive Order 12866. VA's regulatory impact analysis can 
be found as a supporting document at http://

[[Page 65584]]

www.regulations.gov, usually within 48 hours after the rulemaking 
document is published. Additionally, a copy of the rulemaking and its 
regulatory impact analysis are available on VA's Web site at http://www.va.gov/orpm/, by following the link for ``VA Regulations Published 
From FY 2004 Through Fiscal Year to Date.''

Congressional Review Act

    This regulatory action is a major rule under the Congressional 
Review Act, 5 U.S.C. 801-08, because it may result in an annual effect 
on the economy of $100 million or more. Although this regulatory action 
constitutes a major rule within the meaning of the Congressional Review 
Act, 5 U.S.C. 804(2), it is not subject to the 60-day delay in 
effective date applicable to major rules under 5 U.S.C. 801(a)(3) 
because the Secretary finds that good cause exists under 5 U.S.C. 
808(2) to make this regulatory action effective on the date of 
publication, consistent with the reasons given for the publication of 
this interim final rule. Congress directed VA to publish an interim 
final rule within 90 days of the date of enactment of the law, and 
further delay in expanding access to non-VA care for eligible veterans 
could result in the deterioration of their health. Accordingly, the 
Secretary finds that additional advance notice and public procedure 
thereon are impractical, unnecessary, and contrary to the public 
interest. In accordance with 5 U.S.C. 801(a)(1), VA will submit to the 
Comptroller General and to Congress a copy of this regulatory action 
and VA's Regulatory Impact Analysis.

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 $100 million or more (adjusted annually for 
inflation) in any 1 year. This interim final rule will have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Regulatory Flexibility Act

    The Secretary hereby certifies that this interim final rule will 
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. This interim final rule will not have a significant 
economic impact on participating eligible entities and providers who 
enter into agreements with VA. To the extent there is any such impact, 
it will result in increased business and revenue for them. We also do 
not believe there will be a significant economic impact on insurance 
companies, as claims will only be submitted for care that will 
otherwise have been received whether such care was authorized under 
this Program or not. Therefore, pursuant to 5 U.S.C. 605(b), this 
rulemaking is exempt from the initial and final regulatory flexibility 
analysis requirements of 5 U.S.C. 603 and 604.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are as follows: 64.007, Blind 
Rehabilitation Centers; 64.008, Veterans Domiciliary Care; 64.009, 
Veterans Medical Care Benefits; 64.010, Veterans Nursing Home 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 Nursing Home Care; 64.016, 
Veterans State Hospital Care; 64.018, Sharing Specialized Medical 
Resources; 64.019, Veterans Rehabilitation Alcohol and Drug Dependence; 
64.022, Veterans Home Based Primary Care; and 64.024, VA Homeless 
Providers Grant and Per Diem Program.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Jose D. 
Riojas, Chief of Staff, Department of Veterans Affairs, approved this 
document on October 30, 2014, for publication.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Claims, Day care, Dental health, Drug abuse, Government contracts, 
Grant programs--health, Grant programs--veterans, Health care, Health 
facilities, Health professions, Health records, Homeless, Mental health 
programs, Nursing homes, Reporting and recordkeeping requirements, 
Travel and transportation expenses, Veterans.

    Dated: October 31, 2014.
William F. Russo,
Acting Director, Office of Regulation Policy & Management, Office of 
the General Counsel, U.S. Department of Veterans Affairs.

    For the reasons set out in the preamble, VA amends 38 CFR part 17 
as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 continues to read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific sections.


0
2. Amend Sec.  17.108 by:
0
a. Revising paragraph (b)(1).
0
b. Adding paragraph (b)(4).
0
c. Revising paragraph (c)(1).
0
d. Adding paragraph (c)(4).
0
e. Revising the authority citation at the end of the section.
    The revisions and additions read as follows:


Sec.  17.108  Copayments for inpatient hospital care and outpatient 
medical care.

* * * * *
    (b) Copayments for inpatient hospital care. (1) Except as provided 
in paragraphs (d) or (e) of this section, a veteran, as a condition of 
receiving inpatient hospital care provided by VA (provided either 
directly by VA or obtained by VA by contract, provider agreement, or 
sharing agreement), must agree to pay VA (and is obligated to pay VA) 
the applicable copayment, as set forth in paragraph (b)(2), (b)(3), or 
(b)(4) of this section.
* * * * *
    (4) For inpatient hospital care furnished through the Veterans 
Choice Program under Sec.  17.1500 through 17.1540, the copayment 
amount at the time of furnishing such care or services by a non-VA 
entity or provider is $0. VA will determine and assess the veteran's 
copayment amount at the end of the billing process, but at no time will 
a veteran's copayment be more than the amount identified in paragraphs 
(b)(2) or (b)(3) of this section.
* * * * *
    (c) Copayments for outpatient medical care. (1) Except as provided 
in paragraphs (d), (e), or (f) of this section, a veteran, as a 
condition for receiving outpatient medical care provided by VA 
(provided either directly by VA or obtained by VA by contract, provider 
agreement, or sharing agreement), must agree to pay VA (and is 
obligated to pay VA) a copayment as set forth in paragraph (c)(2) or 
(c)(4) of this section.
* * * * *
    (4) For outpatient medical care furnished through the Veterans 
Choice

[[Page 65585]]

Program under Sec.  17.1500 through 17.1540, the copayment amount at 
the time of furnishing such care or services by a non-VA entity or 
provider is $0. VA will determine and assess the veteran's copayment 
amount at the end of the billing process, but at no time will a 
veteran's copayment be more than the amount identified in paragraph 
(c)(2) of this section.
* * * * *

(Authority: 38 U.S.C. 501, 1710, 1730A, Sec. 101, Pub. L. 113-146, 
128 Stat. 1754)



0
3. Amend Sec.  17.110 by:
0
a. Adding paragraph (b)(4).
0
b. Revising the authority citation at the end of the section.
    The revisions read as follows:


Sec.  17.110  Copayments for medications.

* * * * *
    (b) * * *
    (4) For medications furnished through the Veterans Choice Program 
under Sec.  17.1500 through 17.1540, the copayment amount at the time 
the veteran fills the prescription is $0. VA will determine and assess 
the veteran's copayment amount at the end of the billing process, but 
at no time will a veteran's copayment be more than the amount 
identified in paragraphs (b)(1)(i) through (b)(1)(iii) of this section.
* * * * *

(Authority: 38 U.S.C. 501, 1710, 1720D, 1722A, 1730A, Sec. 101, Pub. 
L. 113-146, 128 Stat. 1754)



0
4. Amend Sec.  17.111 by:
0
a. Adding paragraph (b)(3).
0
b. Revising the authority citation at the end of the section.
    The addition and revision read as follows:


Sec.  17.111  Copayments for extended care services.

* * * * *
    (b) * * *
    (3) For hospital care and medical services considered non-
institutional care furnished through the Veterans Choice Program under 
Sec.  17.1500 through 17.1540, the copayment amount at the time of 
furnishing such care or services by a non-VA entity or provider is $0. 
VA will determine and assess the veteran's copayment amount at the end 
of the billing process, but at no time will a veteran's copayment be 
more than the amount identified in paragraphs (b)(1) or (b)(2) of this 
section.
* * * * *

(Authority: 38 U.S.C. 101(28), 501, 1701(7), 1710, 1710B, 1720B, 
1720D, 1722A, Sec. 101, Pub. L. 113-146, 128 Stat. 1754)



0
5. Add an undesignated center heading and Sec. Sec.  17.1500 through 
17.1540 to read as follows:

Expanded Access to Non-VA Care Through the Veterans Choice Program

Sec.
17.1500 Purpose and scope.
17.1505 Definitions.
17.1510 Eligible veterans.
17.1515 Authorizing non-VA care.
17.1520 Effect on other provisions.
17.1525 Start date for eligible veterans.
17.1530 Eligible entities and providers.
17.1535 Payment rates and methodologies.
17.1540 Claims processing system.

Expanded Access to Non-VA Care Through the Veterans Choice Program


Sec.  17.1500  Purpose and scope.

    (a) Purpose. Sections 17.1500 through 17.1540 implement the 
Veterans Choice Program, authorized by section 101 of the Veterans 
Access, Choice, and Accountability Act of 2014.
    (b) Scope. The Veterans Choice Program authorizes VA to furnish 
hospital care and medical services to eligible veterans, as defined in 
Sec.  17.1510, through agreements with eligible entities or providers, 
as defined in Sec.  17.1530.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)

Sec.  17.1505  Definitions.

    For purposes of the Veterans Choice Program under Sec. Sec.  
17.1500 through 17.1540:
    Appointment means an authorized and scheduled encounter with a 
health care provider for the delivery of hospital care or medical 
services. A visit to an emergency room or an unscheduled visit to a 
clinic is not an appointment.
    Attempt to schedule means contact with a VA scheduler or VA health 
care provider in which a stated request by the veteran for an 
appointment is made.
    Episode of care means a necessary course of treatment, including 
follow-up appointments and ancillary and specialty services, which 
lasts no longer than 60 days from the date of the first appointment 
with a non-VA health care provider.
    Health-care plan means an insurance policy or contract, medical or 
hospital service agreement, membership or subscription contract, or 
similar arrangement not administered by the Secretary of Veterans 
Affairs, under which health services for individuals are provided or 
the expenses of such services are paid; and does not include any such 
policy, contract, agreement, or similar arrangement pursuant to title 
XVIII or XIX of the Social Security Act (42 U.S.C. 1395 et seq.) or 
chapter 55 of title 10, United States Code.
    Residence means a legal residence or personal domicile, even if 
such residence is seasonal. A person may maintain more than one 
residence but may only have one residence at a time. If a veteran lives 
in more than one location during a year, the veteran's residence is the 
residence or domicile where the person is staying at the time the 
veteran wants to receive hospital care or medical services through the 
Program. A post office box or other non-residential point of delivery 
does not constitute a residence.
    Schedule means identifying and confirming a date, time, location, 
and entity or health care provider for an appointment.
    VA medical facility means a VA hospital, a VA community-based 
outpatient clinic, or a VA health care center. A Vet Center, or 
Readjustment Counseling Service Center, is not a VA medical facility.
    Wait-time goals of the Veterans Health Administration means, unless 
changed by further notice in the Federal Register, a date not more than 
30 days from either:
    (1) The date that an appointment is deemed clinically appropriate 
by a VA health care provider. In the event a VA health care provider 
identifies a time range when care must be provided (e.g., within the 
next 2 months), VA will use the last clinically appropriate date for 
determining whether or not such care is timely.
    (2) Or, if no such clinical determination has been made, the date 
that a veteran prefers to be seen for hospital care or medical 
services.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)

Sec.  17.1510  Eligible veterans.

    A veteran must meet the eligibility criteria under both paragraphs 
(a) and (b) of this section to be eligible for care through the 
Veterans Choice Program. A veteran must also provide the information 
required by paragraphs (c) and (d) of this section.
    (a) A veteran must:
    (1) Be enrolled in the VA health care system under Sec.  17.36 on 
or before August 1, 2014; or
    (2) Be eligible for hospital care and medical services under 38 
U.S.C. 1710(e)(1)(D) and be a veteran described in 38 U.S.C. 
1710(e)(3).
    (b) A veteran must also meet at least one of the following 
criteria:
    (1) The veteran attempts, or has attempted, to schedule an 
appointment with a VA health care provider, but VA is unable to 
schedule an appointment for the veteran within the wait-time goals of 
the Veterans Health Administration.
    (2) The veteran's residence is more than 40 miles from the VA 
medical

[[Page 65586]]

facility that is closest to the veteran's residence.
    (3) The veteran's residence is both:
    (i) In a state without a VA medical facility that provides hospital 
care, emergency medical services, and surgical care having a surgical 
complexity of standard (VA maintains a Web site with a list of the 
facilities that have been designated with at least a surgical 
complexity of standard. That Web site can be accessed here: www.va.gov/health/surgery); and
    (ii) More than 20 miles from a medical facility described in 
paragraph (b)(3)(i) of this section.
    (4) The veteran's residence is in a location, other than one in 
Guam, American Samoa, or the Republic of the Philippines, which is 40 
miles or less from a VA medical facility and the veteran:
    (i) Must travel by air, boat, or ferry to reach such a VA medical 
facility; or
    (ii) Faces an unusual or excessive burden in traveling to such a VA 
medical facility based on the presence of a body of water (including 
moving water and still water) or a geologic formation that cannot be 
crossed by road.
    (c) If the veteran changes his or her residence, the veteran must 
update VA about the change within 60 days.
    (d) A veteran must provide to VA information on any health-care 
plan under which the veteran is covered prior to obtaining 
authorization for care under the Veterans Choice Program. If the 
veteran changes health-care plans, the veteran must update VA about the 
change within 60 days.
    (e) For purposes of calculating the distance between a veteran's 
residence and the nearest VA medical facility under this section 
(except for purposes of calculating a driving route under paragraph 
(b)(4)(ii) of this section), VA will use the straight-line distance 
between the nearest VA medical facility and a veteran's residence.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)


    (The information collection requirements have been submitted to 
the Office of Management and Budget and are pending OMB approval.)


Sec.  17.1515  Authorizing non-VA care.

    (a) Electing non-VA care. A veteran eligible for the Veterans 
Choice Program under Sec.  17.1510 may choose to schedule an 
appointment with a VA health care provider, be placed on an electronic 
waiting list for VA care, or have VA authorize the veteran to receive 
an episode of care for hospital care or medical services under 38 CFR 
17.38 from an eligible entity or provider.
    (b) Selecting a non-VA provider. An eligible veteran may specify a 
particular non-VA entity or health care provider, if that entity or 
health care provider meets the requirements of Sec.  17.1530. If an 
eligible veteran does not specify a particular eligible entity or 
provider, VA will refer the veteran to a specific eligible entity or 
provider.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)


    (The information collection requirements have been submitted to 
the Office of Management and Budget and are pending OMB approval.)


Sec.  17.1520  Effect on other provisions.

    (a) General. In general, eligibility under the Veterans Choice 
Program does not affect a veteran's eligibility for hospital care or 
medical services under the medical benefits package, as defined in 
Sec.  17.38, or other benefits addressed in this part. Notwithstanding 
any other provision of this part, VA will pay for and fill 
prescriptions written by eligible providers under Sec.  17.1530 for 
eligible veterans under Sec.  17.1510, including prescriptions for 
drugs, including over-the-counter drugs and medical and surgical 
supplies available under the VA national formulary system.
    (b) Copayments. VA will be liable for any deductibles, cost-shares, 
or copayments required by an eligible veteran's health-care plan for 
hospital care and medical services furnished under this Program, to the 
extent that such reimbursement does not result in expenditures by VA 
for the furnished care or services in excess of the rate established 
under Sec.  17.1535. Veterans are also liable for a VA copayment for 
care furnished under this Program, as required by Sec. Sec.  
17.108(b)(4), 17.108(c)(4), 17.110(b)(4), and 17.111(b)(3).
    (c) Beneficiary travel. For veterans who are eligible for 
beneficiary travel benefits under part 70 of this chapter, VA will 
provide beneficiary travel benefits for travel to and from the location 
of the eligible entity or provider who furnishes hospital care or 
medical services for an authorized appointment under the Veterans 
Choice Program without regard to the limitations in Sec.  70.30(b)(2) 
of this chapter.

(Authority: 38 U.S.C. 111; Sec. 101, Pub. L. 113-146, 128 Stat. 
1754)

Sec.  17.1525  Start date for eligible veterans.

    (a) VA will begin furnishing hospital care and medical services 
under the Program authorized by 38 CFR 17.1500 through 17.1540 as 
follows:
    (1) Beginning November 5, 2014, to Veterans eligible under Sec.  
17.1510(b)(2), (b)(3), or (b)(4).
    (2) Beginning no later than December 5, 2014, to Veterans eligible 
under Sec.  17.1510(b)(1).
    (b) If the start date will be earlier than the date identified in 
paragraph (a)(2) of this section, the Secretary will notify the public 
of the start date by publishing a Notice in the Federal Register.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)

Sec.  17.1530  Eligible entities and providers.

    (a) General. An entity or provider is eligible to deliver care 
under the Veterans Choice Program if, in accordance with paragraph (c) 
of this section, it is accessible to the veteran and is an entity or 
provider identified in section 101(a)(1)(B) of the Veterans Access, 
Choice, and Accountability Act of 2014 and is either:
    (1) Not a part of, or an employee of, VA; or
    (2) If the provider is an employee of VA, is not acting within the 
scope of such employment while providing hospital care or medical 
services through the Veterans Choice Program.
    (b) Agreement. An entity or provider must enter into an agreement 
with VA to provide non-VA hospital care or medical services to eligible 
veterans through one of the following types of agreements: contracts, 
intergovernmental agreements, or provider agreements. Each form of 
agreement must be executed by a duly authorized Department official.
    (c) Accessibility. An entity or provider may only furnish hospital 
care or medical services to an eligible veteran if the entity or 
provider is accessible to the eligible veteran. VA will determine 
accessibility by considering the following factors:
    (1) The length of time the eligible veteran would have to wait to 
receive hospital care or medical services from the entity or provider;
    (2) The qualifications of the entity or provider to furnish the 
hospital care or medical services to the eligible veteran; and
    (3) The distance between the eligible veteran's residence and the 
entity or provider.
    (d) Requirements for health care providers. To be eligible to 
furnish care or services under the Veterans Choice Program, a health 
care provider must maintain at least the same or similar credentials 
and licenses as those required of VA's health care providers, as 
determined by the Secretary. The agreement reached under paragraph (b) 
of this section will clarify these requirements. Eligible health care 
providers must submit verification of such licenses and credentials

[[Page 65587]]

maintained by the provider to VA at least once per 12-month period. Any 
entities that are eligible to provide care through the Program must 
ensure that any of their providers furnishing care and services through 
the Program meet these standards. An eligible entity may submit this 
information on behalf of its providers.

(Authority: Sec. 101, Pub. L. 113-146, 128 Stat. 1754)


    (The information collection requirements have been submitted to 
the Office of Management and Budget and are pending OMB approval.)


Sec.  17.1535  Payment rates and methodologies.

    (a) Payment rates. Payment rates will be negotiated and set forth 
in an agreement between the Secretary and an eligible entity or 
provider.
    (1) Except as otherwise provided in this section, payment rates may 
not exceed the rates paid by the United States to a provider of 
services (as defined in section 1861(u) of the Social Security Act (42 
U.S.C. 1395x(u)) or a supplier (as defined in section 1861(d) of such 
Act (42 U.S.C. 1395x(d)) under the Medicare program under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.) for the same care 
or services. These rates are known as the ``Medicare Fee Schedule'' for 
VA purposes.
    (2) For eligible entities or providers in highly rural areas, the 
Secretary may enter into an agreement that includes a rate greater than 
the rate defined paragraph (a)(1) of this section for hospital care or 
medical services, so long as such rate is still determined by VA to be 
fair and reasonable. The term ``highly rural area'' means an area 
located in a county that has fewer than seven individuals residing in 
that county per square mile.
    (3) When there are no available rates as described in paragraph 
(a)(1) of this section, the Secretary shall, to the extent consistent 
with the Veterans Access, Choice, and Accountability Act of 2014, 
follow the process and methodology outlined in Sec. Sec.  17.55 and 
17.56 and pay the resulting rate.
    (b) Payment responsibilities. Responsibility for payments will be 
as follows.
    (1) For a nonservice-connected disability, as that term is defined 
at Sec.  3.1(l) of this chapter, a health-care plan of an eligible 
veteran is primarily responsible, to the extent such care or services 
is covered by the health-care plan, for paying the eligible entity or 
provider for such hospital care or medical services as are authorized 
under Sec. Sec.  17.1500 through 17.1540 and furnished to an eligible 
veteran. VA shall be responsible for promptly paying only for costs of 
the VA-authorized service not covered by such health-care plan, 
including a payment made by the veteran, except that such payment may 
not exceed the rate determined for such care or services pursuant to 
paragraph (a) of this section.
    (2) For hospital care or medical services furnished for a service-
connected disability, as that term is defined at Sec.  3.1(k) of this 
chapter, or pursuant to 38 U.S.C. 1710(e), 1720D, or 1720E, VA is 
solely responsible for paying the eligible entity or provider for such 
hospital care or medical services as are authorized under Sec. Sec.  
17.1500 through 17.1540 and furnished to an eligible veteran.
    (c) Authorized care. VA will only pay for an episode of care for 
hospital care or medical services authorized by VA. The eligible entity 
or provider must contact VA to receive authorization prior to providing 
any hospital care or medical services the eligible non-VA entity or 
provider believes are necessary that are not identified in the 
authorization VA submits to the eligible entity or provider. VA will 
only pay for the hospital care or medical services that are furnished 
by an eligible entity or provider. There must be an actual encounter 
with a health care provider, who is either an employee of an entity in 
an agreement with VA or who is furnishing care through an agreement the 
health care provider has entered into with VA, and such encounter must 
occur after an election is made by an eligible veteran.

(Authority: Secs. 101, 105, Pub. L. 113-146, 128 Stat. 1754)

Sec.  17.1540  Claims processing system.

    (a) There is established within the Chief Business Office of the 
Veterans Health Administration a nationwide claims processing system 
for processing and paying bills or claims for authorized hospital care 
and medical services furnished to eligible veterans under Sec. Sec.  
17.1500 through 17.1540.
    (b) The Chief Business Office is responsible for overseeing the 
implementation and maintenance of such system.
    (c) The claims processing system will receive requests for payment 
from eligible entities and providers for hospital care or medical 
services furnished to eligible veterans. The claims processing system 
will provide accurate, timely payments for claims received in 
accordance with Sec. Sec.  17.1500 through 17.1540.

(Authority: Secs. 101, 105, Pub. L. 113-146, 128 Stat. 1754)


[FR Doc. 2014-26316 Filed 11-4-14; 8:45 am]
BILLING CODE 8320-01-P