67266 Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices

on the nature and degree of

performance. More specifically, they

depend on the following:

• Relative overall performance

compared to other contractors.

• Number of criteria in which

nonconformance occurs.

• Extent of each major

nonconformance.

• Relative significance of the

requirement for which major

nonconformance occurs within the

overall evaluation program.

• Efforts to improve program quality,

service, and efficiency.

• Deciding the assignment or

reassignment of providers and

designation of regional or national

intermediaries for classes of providers.

We make individual contract action

decisions after considering these factors

in terms of their relative significance

and impact on the effective and efficient

administration of the Medicare program.

In addition, if the cost incurred by the

intermediary, RHHI, carrier, or DMEPOS

regional carrier to meet its contractual

requirements exceeds the amount that

we find to be reasonable and adequate

to meet the cost that must be incurred

by an efficiently and economically

operated intermediary or carrier, these

high costs may also be grounds for

adverse action.

IX. Response to Public Comments

Because of the large number of items

of correspondence we normally receive

on Federal Register documents

published for comment, we are unable

to acknowledge or respond to them

individually. We will consider all

comments we receive by the date and

time specified in the DATES section of

this preamble, and, if we proceed with

a subsequent document, we will

respond to the comments in the

preamble of that document.

X. Regulatory Impact Statement

We have examined the impacts of this

notice as required by Executive Order

12866 (September 1993, Regulatory

Planning and Review) and the

Regulatory Flexibility Act (RFA)

(September 19, 1980 Public Law 96–

354). Executive Order 12866 directs

agencies to assess all costs and benefits

of available regulatory alternatives and,

if regulation is necessary, to select

regulatory approaches that maximize

net benefits (including potential

economic, environmental, public health

and safety effects, distributive impacts,

and equity). A regulatory impact

analysis (RIA) must be prepared for

major rules with economically

significant effects ($100 million or more

annually). Since this notice only

describes criteria and standards for

evaluating FI’s, Carriers and DMEPOS

carriers and has no economic or social

impact on the program, its beneficiaries

or providers or suppliers, this is not a

major notice.

The RFA requires agencies to analyze

options for regulatory relief of small

businesses. This notice does not affect

small businesses, individuals and States

are not included in the definition of a

small business entities.

In addition, section 1102(b) of the Act

requires us to prepare a regulatory

impact analysis if a rule may have a

significant impact on the operations of

a substantial number of small rural

hospitals. This notice does not affect

small rural hospitals.

Executive Order 13132 establishes

certain requirements that an agency

must meet when it promulgates a

proposed rule (and subsequent final

rule) that imposes substantial direct

requirement costs on State and local

governments, preempts State law, or

otherwise has Federalism implications.

This notice does not require an impact

analysis because it does not have an

economic impact on small entities,

small rural hospitals, or State, local, or

tribal governments.

In accordance with the provisions of

Executive Order 12866, this notice was

reviewed by the Office of Management

and Budget.

XI. Federalism

We have reviewed this notice under

the threshold criteria of Executive Order

13132, Federalism. We have determined

that the notice does not significantly

affect the rights, roles, and

responsibilities of States.

XII. Collection of Information

Requirements

This document does not impose

information collection and

recordkeeping requirements.

Consequently it need not be reviewed

by the Office of Management and

Budget under the authority of the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.).

(Catalog of Federal Domestic Assistance

Program No. 93.773, Medicare—Hospital

Insurance, and Program No. 93.774,

Medicare—Supplementary Medical

Insurance Program)

Dated: September 13, 2001.

Thomas A. Scully,

Administrator, Centers for Medicare &

Medicaid Services.

[FR Doc. 01–31720 Filed 12–27–01; 8:45 am]

BILLING CODE 4120–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Centers for Medicare & Medicaid

Services

[CMS–2135–N]

RIN: 0938–AL34

Medicare Program; Deductible Amount

for Medigap High Deductible Options

for Calendar Year 2002

AGENCY: Centers for Medicare &

Medicaid Services (CMS), HHS.

ACTION: Notice.

SUMMARY: This notice announces the

annual deductible amount of $1,620 for

the Medicare supplemental health

insurance (Medigap) high deductible

options for 2002. High deductible policy

options are those with benefit packages

classified as ‘‘F’’ or ‘‘J’’ that have a high

deductible feature. The deductible

amount represents the annual out-ofpocket expenses (excluding premiums)

that a beneficiary who chooses one of

these options must pay before the policy

begins paying benefits.

EFFECTIVE DATE: January 1, 2002.

FOR FURTHER INFORMATION CONTACT:

Kathryn McCann, (410) 786–7623.

SUPPLEMENTARY INFORMATION:

I. Background

A. Medicare Supplemental Insurance

A Medicare supplemental, or

Medigap, policy is the principal type of

private health insurance that a

beneficiary may purchase to cover

certain costs that Medicare does not

cover. The beneficiary is responsible for

deductibles and coinsurance amounts

for both Part A (hospital insurance) and

Part B (supplementary medical

insurance) of the Medicare program. In

addition, Medicare generally does not

cover custodial nursing home care,

eyeglasses, dental care, and most

outpatient prescription drugs. A

beneficiary must either pay the full cost

of these services, or he or she may

purchase additional private health

insurance to help pay these costs.

Medigap policies offer coverage for

some or all of the deductibles and

coinsurance amounts required by

Medicare. Additionally, Medigap

policies may provide coverage for some

services that are not covered under the

Medicare program.

Section 1882 of the Social Security

Act (the Act) establishes, among other

things, minimum standards for Medigap

policies. No Medigap policy may be

issued in a State unless the policy

complies with State laws that conform

to section 1882(b)(1) of the Act.

Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices 67267

The Omnibus Budget Reconciliation

Act of 1990 (OBRA 90) amended the Act

by standardizing Medigap benefits and

requiring that no more than 10 Medigap

benefit packages, Plans ‘‘A’’ through ‘‘J,’’

be offered nationwide. Three States

(Wisconsin, Minnesota, and

Massachusetts) experimented with

standardizing benefits before the

enactment of Federal standards. These

States were permitted to keep their

alternative forms of Medigap

standardization and are referred to as

the ‘‘waivered States.’’

Plan ‘‘A’’ is the basic benefit package.

It covers Medicare Part A hospital

coinsurance plus coverage for 365

additional days after Medicare benefits

end, over the beneficiary’s lifetime,

Medicare Part B coinsurance (generally

20 percent of the Medicare-approved

amount or, in the case of hospital

outpatient department services under a

prospective payment system, the

applicable copayment), and coverage for

the first 3 pints of blood per year.

Medigap Plans ‘‘B’’ through ‘‘J’’ contain

this basic benefit package, as well as

different combinations of additional

benefits. Plans ‘‘F’’ and ‘‘J’’ contain:

• Medicare Part A inpatient hospital

deductible.

• Skilled-nursing facility

coinsurance.

• Part B deductible.

• Foreign travel health emergencies.

• 100% of Medicare Part B excess

charges.

In addition, Plan ‘‘J’’ includes:

• At-home recovery.

• Some prescription drug coverage.

• Preventive care.

B. High Deductible Medigap Policies

Section 4032 of the Balanced Budget

Act of 1997 (BBA) authorized high

deductible versions of Plans ‘‘F’’ and ‘‘J’’

and their closest counterparts in the

waivered States. Unlike the regular

versions of Plans ‘‘F’’ and ‘‘J,’’ the high

deductible versions of these policies do

not begin paying benefits until the

deductible amount is met. Out-of-pocket

expenses that can be applied toward

this deductible are expenses that would

ordinarily be paid by the policy,

including Medicare deductibles for

Parts A and B, emergency foreign travel

expenses in the case of both high

deductible policies, and outpatient

prescription drug costs in the case of the

high deductible version of Plan J. The

Plan ‘‘F’’ deductible does not include

the separate foreign travel emergency

deductible of $250. The Plan ‘‘J’’

deductible does not include the plan’s

separate $250 prescription drug

deductible or the plan’s separate $250

deductible for foreign travel

emergencies. Even though foreign travel

emergency expenses and prescription

drug expenses may be applied toward

meeting the plan’s overall deductible,

these types of expenses can only be paid

after the separate $250 deductible for

the benefit has been met.

II. Provisions of This Notice

The high deductible amount is

determined in accordance with section

1882(p)(11)(C)(i) of the Act. That

provision prescribed a deductible of

$1500 for 1998 and 1999, and directed

that the amount increase each

subsequent year by the percent increase

in the Consumer Price Index for all

urban consumers (CPI–U), all items,

U.S. city average. For 2001, the high

deductible amount was $1,580. For

2002, the high deductible amount is

increased by the percent increase in the

CPI–U for the 12-month period ending

August 2001. As reported by the Bureau

of Labor Statistics, Department of Labor,

the CPI–U index was 172.7 in August

2000 and 177.5 in August 2001,

resulting in a 2.78 percent increase for

the 12-month period ending August

2001. A 2.78 percent increase in

$1,580.00 is $1,623.92. Section

1882(p)(11)(C)(ii) of the Act stipulates

that this amount be rounded to the

nearest multiple of $10. After rounding

$1,623.92 to the nearest $10 multiple,

the 2002 deductible for the Medigap

high deductible options is $1,620.

III. Regulatory Impact Statement

We have examined the impacts of this

notice as required by Executive Order

12866 (September 1993, Regulatory

Planning and Review) and the

Regulatory Flexibility Act (RFA)

(September 19, 1980 Public Law 96–

354). Executive Order 12866 directs

agencies to assess all costs and benefits

of available regulatory alternatives and,

if regulation is necessary, to select

regulatory approaches that maximize

net benefits (including potential

economic, environmental, public health

and safety effects, distributive impacts,

and equity). A regulatory impact

analysis (RIA) must be prepared for

major rules with economically

significant effects ($100 million or more

annually). The aggregate impact of this

notice on beneficiaries is negligible,

therefore, this is not a major notice.

The RFA requires agencies to analyze

options for regulatory relief of small

businesses. This notice does not effect

small businesses, individuals and States

are not included in the definition of a

small business entities.

In addition, section 1102(b) of the Act

requires us to prepare a regulatory

impact analysis if a rule may have a

significant impact on the operations of

a substantial number of small rural

hospitals. This notice does not effect

small rural hospitals.

Executive Order 13132 establishes

certain requirements that an agency

must meet when it promulgates a

proposed rule (and subsequent final

rule) that imposes substantial direct

requirement costs on State and local

governments, preempts State law, or

otherwise has Federalism implications.

This notice does not require an impact

analysis because it does not have an

economic impact on small entities,

small rural hospitals, or State, local, or

tribal governments.

In accordance with the provisions of

Executive Order 12866, this notice was

reviewed by the Office of Management

and Budget.

IV. Collection of Information

Requirements

This document does not impose

information collection and

recordkeeping requirements.

Consequently it need not be reviewed

by the Office of Management and

Budget under the authority of the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.).

Authority: Section 1882 of the Social

Security Act. (Catalog of Federal Domestic

Assistance Program No. 93.773, Medicare—

Hospital Insurance, and Program No. 93.774,

Medicare—Supplementary Medical

Insurance Program)

Dated: November 21, 2001.

Thomas A. Scully,

Administrator, Centers for Medicare &

Medicaid Services.

[FR Doc. 01–31721 Filed 12–27–01; 8:45 am]

BILLING CODE 4120–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Administration for Children and

Families

[Program Announcement No. ACYF–PA–

HS–02–01B

Discretionary Announcement of the

Availability of Funds and Request for

Applications for Select Service Areas

of Early Head Start; Correction

AGENCY: Administration for Children,

Youth and Families, ACF, DHHS.

ACTION: Correction.

SUMMARY: This document contains a

correction to the Notice that was

published in the Federal Register on

September 20, 2001.

On page 48474, Appendix A, Part I, in

the State of Washington, in the State