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Title 32 National Defense
Civilian Health And Medical Program Of The Uniformed Services (CHAMPUS)
Part 199.26
TRICARE Young Adult
Revision:  C-1, September 29, 2017
Rule:  Interim Final Rule/FR Vol 82, No 188
(a)   Establishment.
The TRICARE Young Adult (TYA) program offers options of medical benefits provided under the TRICARE program to qualified unmarried adult children of TRICARE-eligible uniformed service sponsors who do not otherwise have eligibility for medical coverage under a TRICARE program at age 21 (23 if enrolled in a full-time course of study at an approved institution of higher learning, and the sponsor provides over 50 percent of the student’s financial support), and are under age 26.
(1)   Purpose.
As specified in paragraph (c) of this section, TYA is a premium-based health option that is available for purchase by any qualified adult child as that term is defined in paragraph (b) of this section. The TYA program allows a qualified adult child to purchase TRICARE coverage.
(2)   Statutory authority.
TYA is authorized by 10 U.S.C. 1110b.
(3)   Scope of the program.
TYA is geographically applicable to the same extent as specified in Sec. 199.1(b)(1).
(4)   Major features of TYA.
(i)   TRICARE rules applicable.
(A)   Unless specified in this section or otherwise prescribed by the Assistant Secretary of Defense (Health Affairs) (ASD (HA)), provisions of this part apply to TYA.
(B)   The TRICARE Dental Program (Sec. 199.13) and the TRICARE Retiree Dental Program (Sec. 199.22) are not covered under TYA.
(C)   TRICARE Select is available to all TYA-eligible young adult dependents.
(D)   TRICARE Prime is available to TYA-eligible young adult dependents, provided that TRICARE Prime (including the Uniformed Services Family Health Plan) is available in the geographic location where the TYA enrollee resides. TYA-eligible young adults are:
(1)   Dependents of sponsors on active duty orders written, or otherwise continuously, for more than 30 days or covered by TAMP (under Sec. 199.3(e));
(2)   Dependents of sponsors who are retired members other than retired members of the Retired Reserve; and
(3)   Survivors of members who died while on active duty for more than 30 days or while receiving retired or retainer pay.
(ii)   Premiums.
TYA coverage is a premium based program that an eligible young adult dependent may purchase. There is only individual coverage, and a premium shall be charged for each dependent even if there is more than one qualified dependent in the uniformed service sponsor’s family that qualifies for TYA coverage. Dependents qualifying for TYA status can purchase individual TRICARE Select or TRICARE Prime coverage (as applicable) according to the rules governing the TRICARE option for which they are qualified on the basis of their uniformed service sponsor’s TRICARE-eligible status (active duty, retired, Selected Reserve, or Retired Reserve) and the availability of a desired option in their geographic location. Premiums shall be determined in accordance with paragraph (c) of this section.
(iii)   Procedures.
Under TYA, qualified dependents under paragraph (b) of this section may purchase individual TYA coverage by submitting a completed request in the appropriate format along with an initial payment of the applicable premium. Procedures for purchasing coverage and paying applicable premiums are prescribed in paragraph (d) of this section.
(iv)   Benefits.
When their TYA coverage becomes effective, qualified beneficiaries receive the benefit of the TRICARE option that they selected, including, if applicable, access to military treatment facilities and pharmacies. TYA coverage features the cost share, deductible and catastrophic cap provisions applicable to Group B beneficiaries based on the program selected, i.e., the TRICARE Select program under Sec. 199.17(l)(2)(ii) or the TRICARE Prime program under Sec. 199.17(l)(ii), as well as the status of their military sponsor. Access to military treatment facilities under the system of access priorities in Sec. 199.17(d)(1) is also based on the program selected as well as the status of the military sponsor. Premiums are not credited to deductibles or catastrophic caps; however, TYA premiums shall apply instead of any applicable TRICARE Prime or Select enrollment fee.
(b)   Eligibility for TRICARE Young Adult coverage.--
(1)   Young Adult Dependent.
A young adult dependent qualifies to purchase TYA coverage if the dependent meets the following criteria:
(i)   Would be a dependent child under 10 U.S.C. 1072, but for exceeding the age limit under that section (abused dependents and NATO dependents are not eligible for TYA coverage); and
(ii)   Is a dependent under the age of 26; and
(iii)   Is not enrolled, or eligible to enroll, for medical coverage in an eligible employer-sponsored health plan as defined in section 5000A(f)(2) of the Internal Revenue Code of 1986; and
(iv)   Is not otherwise eligible under Sec. 199.3; and
(v)   Is not a member of the uniformed services.
(2)   The dependents’ sponsor is responsible for keeping the Defense Enrollment Eligibility Reporting System (DEERS) current with eligibility data through the sponsor’s Service personnel office. Using information from the DEERS, the TRICARE regional contractors have the responsibility to validate a dependent’s qualifications to purchase TYA coverage.
(c)   TRICARE Young Adult premiums.
Qualified young adult dependents are charged premiums for coverage under TYA that represent the full cost of the program, including reasonable administrative costs, as determined by the Director utilizing an appropriate actuarial basis for the provision of TRICARE benefits for the TYA-eligible beneficiary population. Separate premiums shall be established for TRICARE Select and Prime plans. There may also be separate premiums based on the uniformed services sponsor’s status. Premiums are to be paid monthly, except as otherwise provided through administrative implementation, pursuant to procedures established by the Director. The monthly rate for each month of a calendar year is one-twelfth of the annual rate for that calendar year.
(1)   Annual establishment of rates.--
(i)   Monthly premium rates shall be established and updated annually on a calendar year basis by the ASD(HA) for TYA individual coverage.
(ii)   The appropriate actuarial basis used for calculating premium rates shall be one that most closely approximates the actual cost of providing care to a similar demographic population (based on age and health plans) as those enrolled in TYA, as determined by the ASD(HA). TYA premiums shall be based on the actual costs of providing benefits to TYA dependents during the preceding years if the population of TYA enrollees is large enough during those preceding years to be considered actuarially appropriate. Until such time that actual costs from those preceding years become available, TYA premiums shall be based on the actual costs during the preceding calendar years for providing benefits to the population of similarly aged dependents to make the underlying group actuarially appropriate. An adjustment may be applied to cover overhead costs for administration of the program.
(2)   Premium adjustments.
In addition to the determinations described in paragraph (c)(1) of this section, premium adjustments may be made prospectively for any calendar year to reflect any significant program changes mandated by legislative enactment, including but not limited to significant new programs or benefits.
(d)   Procedures.
The Director may establish procedures for the following.
(1)   Purchasing coverage.
Procedures may be established for a qualified dependent to purchase individual coverage. To purchase TYA coverage for effective dates of coverage described below, qualified dependents must submit a request in the appropriate format, along with an initial payment of the applicable premium required by paragraph (c) of this section in accordance with established procedures.
(i)   Continuation coverage.
Procedures may be established for a qualified dependent to purchase TYA coverage with an effective date immediately following the date of termination of coverage under another TRICARE program. Application for continuation coverage must be made within 30 days of the date of termination of coverage under another TRICARE program.
(ii)   Enrollment.
Procedures for enrollment in TRICARE plans under Sec. 199.17(o) shall apply to a qualified dependent purchasing TYA coverage. Generally, the effective date of coverage will coincide with the first day of a month unless enrollment is due to a qualifying event and a different date on or after the qualifying event is required to prevent a lapse in health care coverage.
(2)   Termination.
Procedures may be established for TYA coverage to be terminated as follows.
(i)   Loss of eligibility or entitlement for coverage by the sponsor will result in termination of the dependent’s TYA coverage unless otherwise specified. The effective date of the sponsor’s loss of eligibility for care will also be the effective date of termination of benefits under the TYA program unless specified otherwise.
(A)   Active duty military sponsor.
TYA coverage ends effective the date of military sponsor’s separation from military service, unless the dependent would be eligible under section 199.3(e) of this Part but for the dependent’s age, for the duration of the Transitional Assistance Management Program (TAMP) eligibility or until reaching age 26, whichever comes first. Upon the death of an active duty sponsor, dependents eligible for Transitional Survivor coverage may purchase TYA coverage if otherwise qualified.
(B)   Selected Reserve (Sel Res) Sponsor.
Sel Res sponsors must be currently enrolled in TRICARE Reserve Select (TRS) before a young adult dependent is eligible to purchase TYA. If TRS coverage is terminated by the sponsor, TYA coverage ends effective the same termination date as the sponsor. If the Sel Res sponsor dies while enrolled in TRS, the young adult dependent is eligible to purchase TYA coverage for six months after the date of death of the Sel Res sponsor, if otherwise qualified.
(C)   Retired Reserve Sponsor.
Retired Reserve members not yet eligible for retired or retainer pay must be enrolled in TRICARE Retired Reserve (TRR) to establish TYA eligibility for their young adult dependents. If TRR coverage is terminated by the sponsor, the TYA coverage for the young adult dependent ends effective the same date as the sponsor’s termination of coverage under TRR. If the retired reserve sponsor dies while enrolled in TRR, the young adult dependent may continue to purchase TYA coverage until the date on which the deceased member would have attained age 60, if otherwise qualified. If the Retired Reserve member dies and is not enrolled in TRR, there is no eligibility for TYA coverage until the sponsor would have reached age 60. On the date the Retired Reserve member would have reached 60, a young adult dependent who otherwise qualifies for TYA qualifies as a dependent of a deceased retired sponsor and can purchase TYA coverage.
(ii)   Failure of a young adult dependent to maintain the eligibility qualifications in paragraph (b) of this section shall result in the termination of coverage under the TYA program. The effective date of termination shall be the date upon which the adult young dependent failed to meet any of the prerequisite qualifications. If a subsequent change in circumstances re-establishes eligibility (such as losing eligibility for an eligible employer-sponsored plan), the young adult dependent may re-enroll for coverage under the TYA program.
(iii)   Coverage may also be terminated due to a change in the sponsor’s status, and the young adult dependent must re-qualify and reapply for TYA coverage within 30 days of termination to preclude a gap in coverage.
(iv)   Termination of coverage results in denial of claims for services with a date of service after the effective date of termination.
(v)   Coverage may be terminated for young adult dependents upon request at any time by submitting a completed request in the appropriate format in accordance with established procedures.
(vi)   In accordance with the provisions of Sec. 199.17(o)(2), coverage terminates for young adult dependents who fail to make premium payments in accordance with established procedures.
(vii)   Absent a new qualifying event, young adults are not eligible to re-enroll in TYA until the next annual open season.
(3)   Eligibility for the Continued Health Care Benefit Program.
Upon termination of eligibility to purchase TYA coverage, dependents may purchase coverage for up to 36 months through the Continued Health Care Benefit Program under Sec. 199.20 unless locked out of TYA.
(4)   Changing coverage.
Upon application and payment of appropriate premiums, qualified dependents already enrolled in and who are current in their premium payments may elect to change to another TRICARE program for which the qualified dependent is eligible based on the sponsor’s eligibility and the geographic location of the qualified young adult dependent. Upon change in sponsor status (for example, active duty to retired status), TYA coverage may be automatically transferred to the appropriate TRICARE option consistent with the sponsor’s new status. Recurring TYA premiums may be adjusted accordingly. Administrative processes may be established for changes in program enrollment; however, no change shall be effective until the applicable premium has been paid.
(e)   Preemption of State laws.--
The preemption provisions of Sec. 199.17(a)(7) are applicable to the TYA program.
(f)   Administration.
The Director may establish other processes, policies and procedures for the effective administration of the TYA Program and may authorize exceptions to requirements of this section, if permitted.
[76 FR 23483, Apr 27, 2011; 78 FR 32119, May 29, 2013; 82 FR 45460, Sep 29, 2017]
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