1.0 PURPOSE
The purpose of this phased
demonstration is to identify cost savings achieved through expansion
and scalability of the interagency DoD HCE/VA HAPM for TRICARE Prime-eligible
Active Duty Service Members (ADSMs) and Active Duty Family Members
(ADFMs). This demonstration is intended to assess the feasibility
and return on investment for expanding the DoD/VA hearing aid procurement
interagency resource sharing agreement to include the purchased
care network, and mirror the VA Community Care Network (CCN) Durable
Medical Equipment (DME) polices for hearing aids to inform the current
and future TRICARE contracts.
2.0 BACKGROUND
2.1 An initiative
developed by the DoD HCE and the VA Denver Logistics Center (DLC)
in 2013 granted Military Medical Treatment Facility (MTF) audiologists
access to, and directed their use of the VA’s Remote Ordering Entry
System (ROES). This initiative, outlined in an Interagency Agreement
in accordance with Section 801 of the National Defense Authorization
Act for Fiscal Year 2008, allows MTF audiologists to order hearing
aids and related supplies using the VA’s National Hearing Aid and
Wireless Systems (NHAWS) contract that is reimbursed through a centralized
Defense Health Agency (DHA) Military Interdepartmental Purchase
Request (MIPR). The Military Health System (MHS) has realized substantial
savings using the VA’s NHAWS contract for TRICARE beneficiaries
receiving hearing aids prescribed by MTF audiologists.
2.2 In October 2014, DoD issued
policy authorizing referral of ADSMs to network audiologists when
they either reside outside the catchment area or the specific audiology
service is unavailable at the MTF. Purchased care network audiologists,
when medically necessary, order hearing aid devices and accessories
for their TRICARE patients directly from companies at a significant
mark-up over the VA contract price. The purchase of the same devices
for ADSMs treated at MTFs has been economically achieved through
collaboration between the DoD HCE and VA per DoD policy established
in 2013.
2.3 On April 11, 2018, the DoD
Reform Management Group chaired by the Chief Management Officer,
Office of the Secretary of Defense published a Decision Memorandum
notice of record to approve the TRICARE Health Plan (THP) Managed
Care Support Contract (MCSC) Reform Plan, directing the exploration
of duplicating the VA hearing aid procurement practices through
its CCN via expansion of the DoD/VA HAPM utilized in the DoD Direct Care
(DC) system to utilization of it in the purchased care network as
well (National Defense Authorization Act (NDAA) for Fiscal Year
(FY) 2017, Section 713).
3.0 POLICY
3.1 A demonstration evaluating
the efficacy and cost avoidance of expansion of the project DoD
HCE/VA HAPM was initiated by the DoD HCE in collaboration with the
VA DLC, and the MCSCs. This two year demonstration program will
continue until the program is transitioned to policy or terminated
early if the DHA Director or VA Audiology Program Office determine
that the cost or quality does not support continuation of the endeavor. Termination
will be via a separate notice two years from the start date. Hearing
aids and associated devices under the TRICARE benefit will continue
to be covered in accordance with Federal regulations governing the procurement
of DME.
3.2 The demonstration will expire
on the date two years following initiation of demonstration. Requirements of
this Chapter as related to this demonstration cease at midnight
on the date of expiration.
3.2.1 The MCSC
shall implement the demonstration to TRICARE Prime beneficiaries,
as defined by the demonstration “phase” (Phase 1 ADSMs in California;
Phase 2 adds ADSMs in Texas; Phase 3 expands the demonstration to
qualifying TRICARE Prime ADFMs in California and Texas). Timeline
and dates of phase implementation will be identified in the Demonstration
Implementation Plan governing the demonstration.
3.2.2 The contractor shall not pay
claims to audiologists for codes associated with acquisition of
hearing aids; rather, they shall only be paid for the portions of
the patient encounter leading to medically necessary prescription of
a hearing aid or medical device and any associated fitting/follow-up
care, excluding reimbursement for acquisition of the device as outlined
in
paragraphs 7.0 and
8.0.
3.3 All medical care, treatments,
or testing, must be a TRICARE covered benefit provided to TRICARE-eligible beneficiaries.
This applies to all care rendered during or after the end date of
this demonstration.
3.4 The records
management requirements described in
Chapter
9 apply to this demonstration.
3.5 The benefit,
standard of care, and quality of health care for services rendered
to the TRICARE beneficiaries receiving purchased care network audiology
treatment shall not be negatively impacted in any way.
4.0 APPLICABILITY
4.1 This demonstration
applies to eligible ADSMs and TRICARE Prime-enrolled ADFM beneficiaries
in the states identified in the Demonstration Implementation Plan
receiving care that requires the prescription of hearing aids and
associated medical devices deemed medically necessary.
4.2 The benefit for hearing aids
and associated devices approved under this demonstration program
are the same as the TRICARE Basic Program benefit. Coverage inquiries
shall be submitted to, and resolved by the appropriate contractor
(referencing the DoD HCE/VA HAPM Demonstration). Regarding a beneficiary
with other insurance that provides primary coverage, any medical
necessity reviews the contractor believes are necessary, to act
as a secondary payer, shall be performed on a retrospective basis.
4.3 This demonstration only applies
to TRICARE authorized in-network audiologists.
5.0 GENERAL DESCRIPTION OF THE
ADMINISTRATIVE PROCESS
5.1 The contractor shall preauthorize
all prescriptions for hearing aids and associated devices to verify
that the TRICARE authorized provider has determined the eligible
beneficiary’s medical need, and administered appropriate tests for
diagnosis based on the beneficiary’s clinical diagnoses which support
the medical need. Following the contractor’s identification of an
appropriate request for prescription of a hearing aid or associated device,
as is determined within the benefit, the TRICARE authorized provider
requesting/ordering the hearing medical devices shall be notified
that the DoD HCE is procuring the device to be mailed to their practice
for dispensing and fitting to the beneficiary.
5.1.1 The contractor
shall notify the ordering provider they are not authorized to procure
the hearing aid or associated devices for the beneficiary from any
other source.
5.1.2 The contractor
shall issue the notification of decision to authorize procurement
of the hearing medical device via the DoD HCE/VA interagency Hearing
Aid Procurement Program in writing to both the applicant provider,
the DoD HCE, and the beneficiary receiving the hearing aid device
with instructions to schedule follow-up with the ordering provider
to receive the device.
5.2 All prescriptions
for hearing aids and associated devices shall be submitted by network
audiologist to the contractor. Prescriptions for medically necessary
hearing aids and associated devices will be based on vendors and devices
available through the VA’s (NHAWS) contract.
5.3 The DoD
HCE will alert the MCSC of the initial device and vendors available
through the VA NHAWS contract, as well as any changes in the availability
throughout the demonstration.
5.4 The contractor
shall submit order forms and other documentation (i.e., audiograms
or patient information) as determined necessary for prescribed hearing
aids and associated devices to the DoD HCE.
5.5 The DoD HCE will enter the
order for hearing aid devices into the VA procurement system for
the hearing aid manufacturer to fulfill.
5.6 The DoD
HCE will provide the ROES order form and confirmation to the MCSC
and the ordering provider.
5.7 If custom items are required
(e.g., ear molds), the audiologist will provide the necessary earmold impressions,
and other information as required, to the manufacturer, following
the order confirmation, using the order form and confirmation from
the ROES system.
5.8 If the patient has a prior
history of hearing aids and has an ear mold impression on file with
the DLC or the vendor, it can be used for the new order.
5.9 The hearing aid manufacturer
shall ship the hearing aid devices to the prescribing network audiology office
as is done with the VA CCN providers.
5.10 The network
audiologist shall see the patient for follow-up and dispense medical
devices according to the standard of care (providing education,
fitting/programming, necessary follow-up care, etc.), billing for
all rendered services covered by the benefit, with the exception
of acquisition of the hearing aid and associated devices.
5.11 All claims for audiology care
will be submitted to the contractor for adjudication.
5.12 The DoD HCE shall reimburse
the VA DLC in accordance with the interagency agreement.
6.0 GOVERNMENT
RESPONSIBILITIES
6.1 THP will perform periodic review
and evaluation of the demonstration claims adjudication process.
6.2 The DoD HCE will continue to
purchase and acquire the hearing aids and associated devices for
ADSMs seen in the DC system through the DoD/VA interagency resource
sharing agreement for DME. This process shall be expanded to apply
to ADSMs seen by network audiologists in the state of California
and Texas (Phases 1 and 2) and qualified TRICARE Prime ADFMs in
California and Texas (Phase 3) of the demonstration program.
6.3 The DoD HCE will coordinate
with the MCSC directly for logistical processing of the procurement
orders.
6.4 The DoD HCE will continue to
reimburse the VA for procurement of medical devices.
6.5 The hearing aid manufacturer
will ship the hearing aid devices to the prescribing network audiologist office
in accordance with policies and procedures in the Demonstration
Implementation Plan.
7.0 CONTRACTOR
RESPONSIBILITIES
7.1 The contractor shall ensure
that all hearing aids and associated device prescriptions are submitted
using the DoD HCE/VA order forms provided during the implementation
phase within two business days of health care services from which
the prescription was generated.
7.2 The contractor
shall ensure all network audiologist prescriptions for hearing aids
and associated devices are submitted to the DoD HCE for review and
fulfillment accompanied by pertinent hearing test results reported according
to the DoD HCE template provided during the implementation phase.
7.3 The contractor shall comply
with these network requirements for facilitating the procurement
of hearing aids and associated devices for all eligible ADSMs and
TRICARE Prime ADFMs in the designated geographic region undergoing
care by network audiologists in accordance with the phase of the
demonstration (Phase 1 ADSMs - California; Phase 2 ADSMs - Texas,
Phase 3 eligible TRICARE Prime ADFMs in California and Texas who
meet the TRICARE definition of profound hearing loss and are five
years of age or older).
7.4 The contractor
shall educate all network audiologists and keep TRICARE informed
of the progress of this education regarding the change in hearing
device procurement for TRICARE beneficiaries required by this demonstration,
with 100% contact made 30 calendar days prior to demonstration start
date with continuing education of audiologists throughout.
7.5 The contractor shall verify
the beneficiary’s eligibility on the Defense Enrollment Eligibility
Reporting System (DEERS) to verify plan type and beneficiary category.
7.6 The contractor shall issue
an authorization letter to the applicant provider and beneficiary
with instructions once a determination is made. Sample education
materials and forms shall be provided by the DoD HCE during implementation.
7.7 The contractor shall submit
order forms for prescribed hearing aids and associated devices to
the DoD HCE. They shall address discrepancies/missing data (tests)
with network audiologists and resolve issues.
7.8 The contractor shall hold the
network audiologists accountable for delivering the medical standard
of care necessary for follow-up care, including patient education,
training, fitting, and adjustment for the prescribed item.
7.9 The hearing aid manufacturer
shall send the prescribed item to the prescribing provider location,
unless specified otherwise, for the prescribing provider to provide
follow-up care and the item(s) to the beneficiary. An order form
is only submitted by the audiologist if custom item is required
and there is no prior custom order prescription on file.
7.10 The contractor shall ensure
part of their network provider education and preauthorization notification informs
that DoD reserves the right to order/issue comparable, functionally
equivalent hearing aids and associated devices, if deemed appropriate.
7.11 The contractor shall provide
a report with data elements that demonstrate compliance with the procurement
of hearing aids and associated devices contained within this chapter,
as well as to assist with evaluating the success of this demonstration.
For reporting requirements, see DD Form 1423, Contract Data Requirements
List (CDRL), located in Section J of the applicable contract.
8.0 CLAIMS
PROCESSING REQUIREMENTS
8.1 The contractor shall ensure
no payment is made to the dispensing network provider for the hearing
aids and associated devices.
8.2 The contractor
shall correctly voucher the TRICARE Encounter Data (TED) records
for payment.
8.3 The contractor shall manage
and resolve all inquiries related to the demonstration including
claims issues.
9.0 EFFECTIVE DATES
The effective date for this
demonstration is proposed for July 1, 2021 for commencement of Phase
1 with anticipated dates for transition to Phase 2, of July 1, 2022,
and Phase 3, of January 1, 2023.