[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR199.2]

[Page 68-92]
 
                       TITLE 32--NATIONAL DEFENSE
 
        CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE (CONTINUED)
 
PART 199_CIVILIAN HEALTH AND MEDICAL PROGRAM OF THE UNIFORMED SERVICES 
 
Sec. 199.2  Definitions.

    (a) General. In an effort to be as specific as possible as to the 
word and intent of CHAMPUS, the following definitions have been 
developed. While many of the definitions are general and some assign 
meaning to relatively common terms within the health insurance 
environment, others are applicable only to CHAMPUS; however, they all 
appear in this part solely for the purpose of the Program. Except when 
otherwise specified, the definitions in this section apply generally 
throughout this part.
    (b) Specific definitions. Abortion. Abortion means the intentional 
termination of a pregnancy by artificial means done for a purpose other 
than that of producing a live birth. A spontaneous, missed or threatened 
abortion or termination of an ectopic (tubal) pregnancy are not included 
within the term ``abortion'' as used herein.
    Absent treatment. Services performed by Christian Science 
practitioners for a person when the person is physically present.

    Note: Technically, ``Absent Treatment'' is an obsolete term. The 
current Christian Science terminology is ``treatment through prayer and 
spiritual means,'' which is employed by an authorized Christian Science 
practitioner either with the beneficiary being present or absent. 
However, to be considered for coverage under CHAMPUS, the beneficiary 
must be present physically when a Christian Science service is rendered, 
regardless of the terminology used.
    Abuse. For the purposes of this part, abuse is defined as any 
practice that is inconsistent with accepted sound fiscal, business, or 
professional practice which results in a CHAMPUS claim,

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unnecessary cost, or CHAMPUS payment for services or supplies that are: 
(1) Not within the concepts of medically necessary and appropriate care, 
as defined in this part, or (2) that fail to meet professionally 
recognized standards for health care providers. The term ``abuse'' 
includes deception or misrepresentation by a provider, or any person or 
entity acting on behalf of a provider in relation to a CHAMPUS claim.
    Note: Unless a specific action is deemed gross and flagrant, a 
pattern of inappropriate practice will normally be required to find that 
abuse has occurred. Also, any practice or action that constitutes fraud, 
as defined by this part, would also be abuse.

    Abused dependent. An eligible spouse or child, who meets the 
criteria in Sec. 199.3 of this part, of a former member who received a 
dishonorable or bad-conduct discharge or was dismissed from a Uniformed 
Service as a result of a court-martial conviction for an offense 
involving physical or emotional abuse or was administratively discharged 
as a result of such an offense, or of a member or former member who has 
had their entitlement to receive retired pay terminated because of 
misconduct involving physical or emotional abuse.
    Accidental injury. Physical bodily injury resulting from an external 
force, blow or fall, or the ingestion of a foreign body or harmful 
substance, requiring immediate medical treatment. Accidental injury also 
includes animal and insect bites and sunstrokes. For the purpose of 
CHAMPUS, the breaking of a tooth or teeth does not constitute a physical 
bodily injury.
    Active duty. Full-time duty in the Uniformed Services of the United 
States. It includes duty on the active list, full-time training duty, 
annual training duty, and attendance while in the active Military 
Service, at a school designated as a Service school by law or by the 
Secretary of the Military Department concerned.
    Active duty member. A person on active duty in a Uniformed Service 
under a call or order that does not specify a period of 30 days or less.
    Activities of daily living. Care that consists of providing food 
(including special diets), clothing, and shelter; personal hygiene 
services; observation and general monitoring; bowel training or 
management (unless abnormalities in bowel function are of a severity to 
result in a need for medical or surgical intervention in the absence of 
skilled services); safety precautions; general preventive procedures 
(such as turning to prevent bedsores); passive exercise; companionship; 
recreation; transportation; and such other elements of personal care 
that reasonably can be performed by an untrained adult with minimal 
instruction or supervision. Activities of daily living may also be 
referred to as ``essentials of daily living''.
    Acupuncture. The practice of inserting needles into various body 
parts to pierce specific peripheral nerves for the production of 
counter-irritation to relieve the discomfort of pain, induce surgical 
anesthesia, or for other treatment purposes.
    Note: Acupuncture is not covered by CHAMPUS.
    Adequate Medical Documentation, Medical Treatment Records. Adequate 
medical documentation contains sufficient information to justify the 
diagnosis, the treatment plan, and the services and supplies furnished. 
Under CHAMPUS, it is required that adequate and sufficient clinical 
records be kept by the health care provider(s) to substantiate that 
specific care was actually and appropriately furnished, was medically 
necessary and appropriate (as defined by this part), and to identify the 
individual(s) who provided the care. All procedures billed must be 
documented in the records. In determining whether medical records are 
adequate, the records will be reviewed under the generally acceptable 
standards such as the applicable Joint Commission on Accreditation of 
Healthcare Organizations (JCAHO) standards, the Peer Review Organization 
(PRO) standards (and the provider's state or local licensing 
requirements) and other requirements specified by this part. In general, 
the documentation requirements for a professional provider are not less 
in the outpatient setting than the inpatient setting.
    Adequate medical documentation, mental health records. Adequate 
medical documentation provides the means for

[[Page 70]]

measuring the type, frequency, and duration of active treatment 
mechanisms employed and progress under the treatment plan. Under 
CHAMPUS, it is required that adequate and sufficient clinical records be 
kept by the provider to substantiate that specific care was actually and 
appropriately furnished, was medically or psychologically necessary (as 
defined by this part), and to identify the individual(s) who provided 
the care. Each service provided or billed must be documented in the 
records. In determining whether medical records are adequate, the 
records will be reviewed under the generally acceptable standards (e.g., 
the applicable JCAHO standards and the provider's state or local 
licensing requirements) and other requirements specified by this part. 
It must be noted that the psychiatric and psychological evaluations, 
physician orders, the treatment plan, integrated progress notes (and 
physician progress notes if separate from the integrated progress 
notes), and the discharge summary are the more critical elements of the 
mental health record. However, nursing and staff notes, no matter how 
complete, are not a substitute for the documentation of services by the 
individual professional provider who furnished treatment to the 
beneficiary. In general, the documentation requirements of a 
professional provider are not less in the outpatient setting than the 
inpatient setting. Furthermore, even though a hospital that provides 
psychiatric care may be accredited under the JCAHO manual for hospitals 
rather than the consolidated standards manual, the critical elements of 
the mental health record listed above are required for CHAMPUS claims.
    Adjunctive dental care. Dental care which is medically necessary in 
the treatment of an otherwise covered medical (not dental) condition, is 
an integral part of the treatment of such medical condition and is 
essential to the control of the primary medical condition; or, is 
required in preparation for or as the result of dental trauma which may 
be or is caused by medically necessary treatment of an injury or disease 
(iatrogenic).
    Admission. The formal acceptance by a CHAMPUS authorized 
institutional provider of a CHAMPUS beneficiary for the purpose of 
diagnosis and treatment of illness, injury, pregnancy, or mental 
disorder.
    Adopted child. A child taken into one's own family by legal process 
and treated as one's own child. In case of adoption, CHAMPUS eligibility 
begins as of 12:01 a.m. of the day of the final adoption decree.
    Note: There is no CHAMPUS benefit entitlement during any interim 
waiting period.
    All-inclusive per diem rate. The OCHAMPUS determined rate that 
encompasses the daily charge for inpatient care and, unless specifically 
excepted, all other treatment determined necessary and rendered as part 
of the treatment plan established for a patient, and accepted by 
OCHAMPUS.
    Allowable charge. The CHAMPUS-determined level of payment to 
physicians, other individual professional providers and other providers, 
based on one of the approved reimbursement methods set forth in Sec. 
199.14 of this part. Allowable charge also may be referred to as the 
CHAMPUS-determined reasonable charge.
    Allowable cost. The CHAMPUS-determined level of payment to hospitals 
or other institutions, based on one of the approved reimbursement 
methods set fourth in Sec. 199.14 of this part. Allowable cost may also 
be referred to as the CHAMPUS-determined reasonable cost.
    Ambulance. A specially designed vehicle for transporting the sick or 
injured that contains a stretcher, linens, first aid supplies, oxygen 
equipment, and such lifesaving equipment required by state and local 
law, and that is staffed by personnel trained to provide first aid 
treatment.
    Amount in dispute. The amount of money, determined under this part, 
that CHAMPUS would pay for medical services and supplies involved in an 
adverse determination being appealed if the appeal were resolved in 
favor of the appealing party. See Sec. 199.10 for additional 
information concerning the determination of ``amount in dispute'' under 
this part.
    Anesthesia services. The administration of an anesthetic agent by 
injection or inhalation, the purpose and effect of which is to produce 
surgical anesthesia characterized by muscular relaxation,

[[Page 71]]

loss of sensation, or loss of consciousness when administered by or 
under the direction of a physician or dentist in connection with 
otherwise covered surgery or obstetrical care, or shock therapy. 
Anesthesia services do not include hypnosis or acupuncture.
    Appealable issue. Disputed questions of fact which, if resolved in 
favor of the appealing party, would result in the authorization of 
CHAMPUS benefits, or approval as an authorized provider in accordance 
with this part. An appealable issue does not exist if no facts are in 
dispute, if no CHAMPUS benefits would be payable, or if there is no 
authorized provider, regardless of the resolution of any disputed facts. 
See Sec. 199.10 for additional information concerning the determination 
of ``appealable issue'' under this part.
    Appealing party. Any party to the initial determination who files an 
appeal of an adverse determination or requests a hearing under the 
provisions of this part.
    Appropriate medical care. (i) Services performed in connection with 
the diagnosis or treatment of disease or injury, pregnancy, mental 
disorder, or well-baby care which are in keeping with the generally 
accepted norms for medical practice in the United States;
    (ii) The authorized individual professional provider rendering the 
medical care is qualified to perform such medical services by reason of 
his or her training and education and is licensed or certified by the 
state where the service is rendered or appropriate national organization 
or otherwise meets CHAMPUS standards; and
    (iii) The services are furnished economically. For purposes of this 
part, ``economically'' means that the services are furnished in the 
least expensive level of care or medical environment adequate to provide 
the required medical care regardless of whether or not that level of 
care is covered by CHAMPUS.
    Approved teaching programs. For purposes of CHAMPUS, an approved 
teaching program is a program of graduate medical education which has 
been duly approved in its respective specialty or subspecialty by the 
Accreditation Council for Graduate Medical Education of the American 
Medical Association, by the Committee on Hospitals of the Bureau of 
Professional Education of the American Osteopathic Association, by the 
Council on Dental Education of the American Dental Association, or by 
the Council on Podiatry Education of the American Podiatry Association.
    Assistant Secretary of Defense (Health Affairs). An authority of the 
Assistant Secretary of Defense (Health Affairs) includes any person 
designated by the Assistant Secretary to exercise the authority 
involved.
    Attending physician. The physician who has the primary 
responsibility for the medical diagnosis and treatment of the patient. A 
consultant or an assistant surgeon, for example, would not be an 
attending physician. Under very extraordinary circumstances, because of 
the presence of complex, serious, and multiple, but unrelated, medical 
conditions, a patient may have more than one attending physician 
concurrently rendering medical treatment during a single period of time. 
An attending physician also may be a teaching physician.
    Augmentative communication device (ACD). A voice prosthesis as 
determined by the Secretary of Defense to be necessary because of 
significant conditions resulting from trauma, congenital anomalies, or 
disease. Also referred to as Speech Generating Device.
    Authorized provider. A hospital or institutional provider, 
physician, or other individual professional provider, or other provider 
of services or supplies specifically authorized to provide benefits 
under CHAMPUS in Sec. 199.6 of this part.
    Automobile liability insurance. Automobile liability insurance means 
insurance against legal liability for health and medical expenses 
resulting from personal injuries arising from operation of a motor 
vehicle. Automobile liability insurance includes:
    (1) Circumstances in which liability benefits are paid to an injured 
party only when the insured party's tortious acts are the cause of the 
injuries; and
    (2) Uninsured and underinsured coverage, in which there is a third-
party tortfeasor who caused the injuries (i.e., benefits are not paid on 
a no-fault

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basis), but the insured party is not the tortfeasor.
    Backup hospital. A hospital which is otherwise eligible as a CHAMPUS 
institutional provider and which is fully capable of providing emergency 
care to a patient who develops complications beyond the scope of 
services of a given category of CHAMPUS-authorized freestanding 
institutional provider and which is accessible from the site of the 
CHAMPUS-authorized freestanding institutional provider within an average 
transport time acceptable for the types of medical emergencies usually 
associated with the type of care provided by the freestanding facility.
    Balance billing. A provider seeking any payment, other than any 
payment relating to applicable deductible and cost sharing amounts, from 
a beneficiary for CHAMPUS covered services for any amount in excess of 
the applicable CHAMPUS allowable cost or charge.
    Basic program. The primary medical benefits authorized under chapter 
55 of title 10 U.S. Code, and set forth in Sec. 199.4 of this part.
    Beneficiary. An individual who has been determined to be eligible 
for CHAMPUS benefits, as set forth in Sec. 199.3 of this part.
    Beneficiary liability. The legal obligation of a beneficiary, his or 
her estate, or responsible family member to pay for the costs of medical 
care or treatment received. Specifically, for the purposes of services 
and supplies covered by CHAMPUS, beneficiary liability includes any 
annual deductible amount, cost-sharing amounts, or, when a provider does 
not submit a claim on a participating basis on behalf of the 
beneficiary, amounts above the CHAMPUS-determined allowable cost or 
charge. Beneficiary liability also includes any expenses for medical or 
related services and supplies not covered by CHAMPUS.
    Birthing center. A health care provider which meets the applicable 
requirements established by Sec. 199.6(b) of this part.
    Birthing room. A room and environment designed and equipped to 
provide care, to accommodate support persons, and within which a woman 
with a low-risk, normal, full-term pregnancy can labor, deliver and 
recover with her infant.
    Brace. An orthopedic appliance or apparatus (an orthosis) used to 
support, align, or hold parts of the body in correct position. For the 
purposes of CHAMPUS, it does not include orthodontic or other dental 
appliances.
    Capped rate. The maximum per diem or all-inclusive rate that CHAMPUS 
will allow for care.
    Case management. Case management is a collaborative process which 
assesses, plans, implements, coordinates, monitors, and evaluates the 
options and services required to meet an individual's health needs, 
using communication and available resources to promote quality, cost 
effective outcomes.
    Case managers. A licensed registered nurse, licensed clinical social 
worker, licensed psychologist or licensed physician who has a minimum of 
two (2) years case management experience.
    Case-mix index. Case-mix index is a scale that measures the relative 
difference in resources intensity among different groups receiving home 
health services.
    Certified nurse-midwife. An individual who meets the applicable 
requirements established by Sec. 199.6(c) of this part.
    Certified psychiatric nurse specialist. A licensed, registered nurse 
who meets the criteria in Sec. 199.6(c)(3)(iii)(G).
    CHAMPUS DRG-Based Payment System. A reimbursement system for 
hospitals which assigns prospectively-determined payment levels to each 
DRG based on the average cost of treating all CHAMPUS patients in a 
given DRG.
    CHAMPUS fiscal intermediary. An organization with which the 
Director, OCHAMPUS, has entered into a contract for the adjudication and 
processing of CHAMPUS claims and the performance of related support 
activities.
    CHAMPUS Health Benefits Advisors (HBAs). Those individuals located 
at Uniformed Services medical facilities (on occasion at other 
locations) and assigned the responsibility for providing CHAMPUS 
information, information concerning availability of care from the 
Uniformed Services direct medical care system, and generally assisting 
beneficiaries (or sponsors). The term

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also includes ``Health Benefits Counselor'' and ``CHAMPUS Advisor.''
    Chemotherapy. The administration of approved antineoplastic drugs 
for the treatment of malignancies (cancer) via perfusion, infusion, or 
parenteral methods of administration.
    Child. An unmarried child of a member or former member, who meets 
the criteria (including age requirements) in Sec. 199.3 of this part.
    Chiropractor. A practitioner of chiropractic (also called 
chiropraxis); essentially a system of therapeutics based upon the claim 
that disease is caused by abnormal function of the nerve system. It 
attempts to restore normal function of the nerve system by manipulation 
and treatment of the structures of the human body, especially those of 
the spinal column.
    Note: Services of chiropractors are not covered by CHAMPUS.
    Christian science nurse. An individual who has been accredited as a 
Christian Science Nurse by the Department of Care of the First Church of 
Christ, Scientist, Boston, Massachusetts, and listed (or eligible to be 
listed) in the Christian Science Journal at the time the service is 
provided. The duties of Christian Science nurses are spiritual and are 
nonmedical and nontechnical nursing care performed under the direction 
of an accredited Christian Science practitioner. There exist two levels 
of Christian Science nurse accreditation:
    (i) Graduate Christian Science nurse. This accreditation is granted 
by the Department of Care of the First Church of Christ, Scientist, 
Boston, Massachusetts, after completion of a 3-year course of 
instruction and study.
    (ii) Practical Christian Science nurse. This accreditation is 
granted by the Department of Care of the First Church of Christ, 
Scientist, Boston, Massachusetts, after completion of a 1-year course of 
instruction and study.
    Christian Science practitioner. An individual who has been 
accredited as a Christian Science Practitioner for the First Church, 
Scientist, Boston, Massachusetts, and listed (or eligible to be listed) 
in the Christian Science Journal at the time the service is provided. An 
individual who attains this accreditation has demonstrated results of 
his or her healing through faith and prayer rather than by medical 
treatment. Instruction is executed by an accredited Christian Science 
teacher and is continuous.
    Christian Science sanatorium. A sanatorium either operated by the 
First Church of Christ, Scientist, or listed and certified by the First 
Church of Christ, Scientist, Boston, Massachusetts.
    Chronic medical condition. A medical condition that is not curable, 
but which is under control through active medical treatment. Such 
chronic conditions may have periodic acute episodes and may require 
intermittent inpatient hospital care. However, a chronic medical 
condition can be controlled sufficiently to permit generally 
continuation of some activities of persons who are not ill (such as work 
and school).
    Chronic renal disease (CRD). The end stage of renal disease which 
requires a continuing course of dialysis or a kidney transplantation to 
ameliorate uremic symptoms and maintain life.
    Clinical psychologist. A psychologist, certified or licensed at the 
independent practice level in his or her state, who meets the criteria 
in Sec. 199.6(c)(3)(iii)(A).
    Clinical social worker. An individual who is licensed or certified 
as a clinical social worker and meets the criteria listed in Sec. 
199.6.
    Clinically meaningful endpoints. As used the definition of reliable 
evidence in this paragraph (b) and Sec. 199.4(g)(15), the term 
clinically meaningful endpoints means objectively measurable outcomes of 
clinical interventions or other medical procedures, expressed in terms 
of survival, severity of illness or condition, extent of adverse side 
effects, diagnostic capability, or other effect on bodily functions 
directly associated with such results.
    Collateral visits. Sessions with the patient's family or significant 
others for purposes of information gathering or implementing treatment 
goals.
    Combined daily charge. A billing procedure by an inpatient facility 
that uses an inclusive flat rate covering all professional and ancillary 
charges without any itemization.

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    Complications of pregnancy. One of the following, when commencing or 
exacerbating during the term of the pregnancy:
    (i) Caesarean delivery; hysterectomy.
    (ii) Pregnancy terminating before expiration of 26 weeks, except a 
voluntary abortion.
    (iii) False labor or threatened miscarriage.
    (iv) Nephritis or pyelitis of pregnancy.
    (v) Hyperemesis gravidarum.
    (vi) Toxemia.
    (vii) Aggravation of a heart condition or diabetes.
    (viii) Premature rupture of membrane.
    (ix) Ectopic pregnancy.
    (x) Hemorrhage.
    (xi) Other conditions as may be determined by the Director, 
OCHAMPUS, or a designee.
    Confinement. That period of time from the day of admission to a 
hospital or other institutional provider, to the day of discharge, 
transfer, or separation from the facility, or death. Successive 
admissions also may qualify as one confinement provided not more than 60 
days have elapsed between the successive admissions, except that 
successive admissions related to a single maternity episode shall be 
considered one confinement, regardless of the number of days between 
admissions.
    Conflict of interest. Includes any situation where an active duty 
member (including a reserve member while on active duty) or civilian 
employee of the United States Government, through an official federal 
position, has the apparent or actual opportunity to exert, directly or 
indirectly, any influence on the referral of CHAMPUS beneficiaries to 
himself or herself or others with some potential for personal gain or 
appearance of impropriety. For purposes of this part, individuals under 
contract to a Uniformed Service may be involved in a conflict of 
interest situation through the contract position.
    Congenital anomaly. A condition existing at or from birth that is a 
significant deviation from the common form or norm and is other than a 
common racial or ethnic feature. For purposes of CHAMPUS, congenital 
anomalies do not include anomalies relating to teeth (including 
malocclusion or missing tooth buds) or structures supporting the teeth, 
or to any form of hermaphroditism or sex gender confusion. Examples of 
congenital anomalies are harelip, birthmarks, webbed fingers or toes, or 
such other conditions that the Director, OCHAMPUS, or a designee, may 
determine to be congenital anomalies.
    Note: Also refer to Sec. 199.4(e)(7) of this part.
    Consultation. A deliberation with a specialist physician or dentist 
requested by the attending physician primarily responsible for the 
medical care of the patient, with respect to the diagnosis or treatment 
in any particular case. A consulting physician or dentist may perform a 
limited examination of a given system or one requiring a complete 
diagnostic history and examination. To qualify as a consultation, a 
written report to the attending physician of the findings of the 
consultant is required.
    Note: Staff consultations required by rules and regulations of the 
medical staff of a hospital or other institutional provider do not 
qualify as consultation.
    Consultation appointment. An appointment for evaluation of medical 
symptoms resulting in a plan for management which may include elements 
of further evaluation, treatment and follow-up evaluation. Such an 
appointment does not include surgical intervention or other invasive 
diagnostic or therapeutic procedures beyond the level of very simply 
office procedures, or basic laboratory work but rather provides the 
beneficiary with an authoritative opinion.
    Consulting physician or dentist. A physician or dentist, other than 
the attending physician, who performs a consultation.
    Conviction. For purposes of this part, ``conviction'' or 
``convicted'' means that (1) a judgment of conviction has been entered, 
or (2) there has been a finding of guilt by the trier of fact, or (3) a 
plea of guilty or a plea of nolo contendere has been accepted by a court 
of competent jurisdiction, regardless of whether an appeal is pending.
    Coordination of benefits. The coordination, on a primary or 
secondary payer

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basis, of the payment of benefits between two or more health care 
coverages to avoid duplication of benefit payments.
    Corporate services provider. A health care provider that meets the 
applicable requirements established by Sec. 199.6(f).
    Cosmetic, reconstructive, or plastic surgery. Surgery that can be 
expected primarily to improve the physical appearance of a beneficiary, 
or that is performed primarily for psychological purposes, or that 
restores form, but does not correct or improve materially a bodily 
function.
    Cost-share. The amount of money for which the beneficiary (or 
sponsor) is responsible in connection with otherwise covered inpatient 
and outpatient services (other than the annual fiscal year deductible or 
disallowed amounts) as set forth in Sec. Sec. 199.4(f) and 199.5(b) of 
this part. Cost-sharing may also be referred to as ``co-payment.''
    Custodial care. The term ``custodial care'' means treatment or 
services, regardless of who recommends such treatment or services or 
where such treatment or services are provided, that:
    (1) Can be rendered safely and reasonably by a person who is not 
medically skilled; or
    (2) Is or are designed mainly to help the patient with the 
activities of daily living.
    Days. Calendar days.
    Deceased member. A person who, at the time of his or her death, was 
an active duty member of a Uniformed Service under a call or order that 
did not specify a period of 30 days or less.
    Deceased reservist. A reservist in a Uniformed Service who incurs or 
aggravates an injury, illness, or disease, during, or on the way to or 
from, active duty training for a period of 30 days or less or inactive 
duty training and dies as a result of that specific injury, illness or 
disease.
    Deceased retiree. A person who, at the time of his or her death, was 
entitled to retired or retainer pay or equivalent pay based on duty in a 
Uniformed Service. For purposes of this part, it also includes a person 
who died before attaining age 60 and at the time of his or her death 
would have been eligible for retired pay as a reservist but for the fact 
that he or she was not 60 years of age, and had elected to participate 
in the Survivor Benefit Plan established under 10 U.S.C. chapter 73.
    Deductible. Payment by a beneficiary of the first $50 of the 
CHAMPUS-determined allowable costs or charges for otherwise covered 
outpatient services or supplies provided in any one fiscal year; or for 
a family, the aggregate payment by two or more beneficiaries who submit 
claims of the first $100.
    Deductible certificate. A statement issued to the beneficiary (or 
sponsor) by a CHAMPUS fiscal intermediary certifying to deductible 
amounts satisfied by a CHAMPUS beneficiary for any applicable fiscal 
year.
    Defense Enrollment Eligibility Reporting System (DEERS). An 
automated system maintained by the Department of Defense for the purpose 
of:
    (1) Enrolling members, former members and their dependents, and
    (2) Verifying members', former members' and their dependents' 
eligibility for health care benefits in the direct care facilities and 
for CHAMPUS.
    Dental care. Services relating to the teeth and their supporting 
structures.
    Dentist. Doctor of Dental Medicine (D.M.D.) or Doctor of Dental 
Surgery (D.D.S.) who is licensed to practice dentistry by an appropriate 
authority.
    Dependent. Individuals whose relationship to the sponsor (including 
NATO members who are stationed in or passing through the United States 
on official business when authorized) leads to entitlement to benefits 
under this part. (See Sec. 199.3 of this part for specific categories 
of dependents).
    Deserter or desertion status. A service member is a deserter, or in 
a desertion status, when the Uniformed Service concerned has made an 
administrative determination to that effect, or the member's period of 
unauthorized absence has resulted in a court-martial conviction of 
desertion. Administrative declarations of desertion normally are made 
when a member has been an unauthorized absentee for over 30 days, but 
particular circumstances may result in an earlier declaration. 
Entitlement to CHAMPUS benefits ceases as of 12:01 a.m. on the day 
following the day the desertion status is declared. Benefits are not to 
be authorized for

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treatment received during a period of unauthorized absence that results 
in a court-martial conviction for desertion. Dependent eligibility for 
benefits is reestablished when a deserter is returned to military 
control and continues, even though the member may be in confinement, 
until any discharge is executed. When a deserter status is later found 
to have been determined erroneously, the status of deserter is 
considered never to have existed, and the member's dependents will have 
been eligible continuously for benefits under CHAMPUS.
    Diagnosis-Related Groups (DRGs). Diagnosis-related groups (DRGs) are 
a method of dividing hospital patients into clinically coherent groups 
based on the consumption of resources. Patients are assigned to the 
groups based on their principal diagnosis (the reason for admission, 
determined after study), secondary diagnoses, procedures performed, and 
the patient's age, sex, and discharge status.
    Diagnostic admission. An admission to a hospital or other authorized 
institutional provider, or an extension of a stay in such a facility, 
primarily for the purpose of performing diagnostic tests, examinations, 
and procedures.
    Director. The Director of the TRICARE Management Activity or 
Director, Office of CHAMPUS. Any references to the Director, Office of 
CHAMPUS, or OCHAMPUS, shall mean the Director, TRICARE Management 
Activity. Any reference to Director shall also include any person 
designated by the Director to carry out a particular authority. In 
addition, any authority of the Director may be exercised by the 
Assistant Secretary of Defense (Health Affairs).
    Director, OCHAMPUS. An authority of the Director, OCHAMPUS includes 
any person designated by the Director, OCHAMPUS to exercise the 
authority involved.
    Director, TRICARE Management Activity. This term includes the 
Director, TRICARE Management Activity, the official sometimes referred 
to in this part as the Director, Office of CHAMPUS (or OCHAMPUS), or any 
designee of the Director, TRICARE Management Activity or the Assistant 
Secretary of Defense for Health Affairs who is designated for purposes 
of an action under this part.
    Doctor of Dental Medicine (D.M.D.). A person who has received a 
degree in dentistry, that is, that department of the healing arts which 
is concerned with the teeth, oral cavity, and associated structures.
    Doctor of Medicine (M.D.). A person who has graduated from a college 
of allopathic medicine and who is entitled legally to use the 
designation M.D.
    Doctor of Osteopathy (D.O.). A practitioner of osteopathy, that is, 
a system of therapy based on the theory that the body is capable of 
making its own remedies against disease and other toxic conditions when 
it is in normal structural relationship and has favorable environmental 
conditions and adequate nutrition. It utilizes generally accepted 
physical, medicinal, and surgical methods of diagnosis and therapy, 
while placing chief emphasis on the importance of normal body mechanics 
and manipulative methods of detecting and correcting faulty structure.
    Domiciliary care. The term ``domiciliary care'' means care provided 
to a patient in an institution or homelike environment because:
    (1) Providing support for the activities of daily living in the home 
is not available or is unsuitable; or
    (2) Members of the patient's family are unwilling to provide the 
care.
    Donor. An individual who supplies living tissue or material to be 
used in another body, such as a person who furnishes a kidney for renal 
transplant.
    Double coverage. When a CHAMPUS beneficiary also is enrolled in 
another insurance, medical service, or health plan that duplicates all 
or part of a beneficiary's CHAMPUS benefits.
    Double coverage plan. The specific insurance, medical service, or 
health plan under which a CHAMPUS beneficiary has entitlement to medical 
benefits that duplicate CHAMPUS benefits in whole or in part. Double 
coverage plans do not include:
    (i) Medicaid.
    (ii) Coverage specifically designed to supplement CHAMPUS benefits.
    (iii) Entitlement to receive care from the Uniformed Services 
medical facilities;

[[Page 77]]

    (iv) Entitlement to receive care from Veterans Administration 
medical care facilities; or
    (v) Part C of the Individuals with Disabilities Education Act for 
services and items provided in accordance with Part C of the IDEA that 
are medically or psychologically necessary in accordance with the 
Individual Family Service Plan and that are otherwise allowable under 
the CHAMPUS Basic Program or the Extended Care Health Option (ECHO).
    Dual compensation. Federal Law (5 U.S.C. 5536) prohibits active duty 
members or civilian employees of the United States Government from 
receiving additional compensation from the government above their normal 
pay and allowances. This prohibition applies to CHAMPUS cost-sharing of 
medical care provided by active duty members or civilian government 
employees to CHAMPUS beneficiaries.
    Duplicate equipment. An item of durable equipment or durable medical 
equipment, as defined in this section that serves the same purpose that 
is served by an item of durable equipment or durable medical equipment 
previously cost-shared by TRICARE. For example, various models of 
stationary oxygen concentrators with no essential functional differences 
are considered duplicate equipment, whereas stationary and portable 
oxygen concentrators are not considered duplicates of each other because 
the latter is intended to provide the user with mobility not afforded by 
the former. Also, a manual wheelchair and an electric wheelchair, both 
of which otherwise meet the definition of durable equipment or durable 
medical equipment, would not be considered duplicates of each other if 
each is found to provide an appropriate level of mobility. For the 
purpose of this Part, durable equipment or durable medical equipment 
that are essential to provide a fail-safe in-home life support system or 
that replaces in like kind an item of equipment that is not serviceable 
due to normal wear, accidental damage, a change in the beneficiary's 
condition, or has been declared adulterated by the U.S. FDA, or is being 
or has been recalled by the manufacturer, is not considered duplicate 
equipment.
    Durable equipment. A device or apparatus which does not qualify as 
durable medical equipment and which is essential to the efficient arrest 
or reduction of functional loss resulting from, or the disabling effects 
of a qualifying condition as provided in Sec. 199.5.
    Durable medical equipment. Equipment that--
    (1) Can withstand repeated use;
    (2) Is primarily and customarily used to serve a medical purpose; 
and
    (3) Generally is not useful to an individual in the absence of an 
illness or injury.
    Economic interest. (1) Any right, title, or share in the income, 
remuneration, payment, or profit of a CHAMPUS-authorized provider, or of 
an individual or entity eligible to be a CHAMPUS-authorized provider, 
resulting, directly or indirectly, from a referral relationship; or any 
direct or indirect ownership, right, title, or share, including a 
mortgage, deed of trust, note, or other obligation secured (in whole or 
in part) by one entity for another entity in a referral or accreditation 
relationship, which is equal to or exceeds 5 percent of the total 
property and assets of the other entity.
    (2) A referral relationship exists when a CHAMPUS beneficiary is 
sent, directed, assigned or influenced to use a specific CHAMPUS-
authorized provider, or a specific individual or entity eligible to be a 
CHAMPUS-authorized provider.
    (3) An accreditation relationship exists when a CHAMPUS-authorized 
accreditation organization evaluates for accreditation an entity that is 
an applicant for, or recipient of CHAMPUS-authorized provider status.
    Emergency inpatient admission. An unscheduled, unexpected, medically 
necessary admission to a hospital or other authorized institutional 
provider for treatment of a medical condition meeting the definition of 
medical emergency and which is determined to require immediate inpatient 
treatment by the attending physician.
    Entity. For purposes of Sec. 199.9(f)(1), ``entity'' includes a 
corporation, trust, partnership, sole proprietorship or other kind of 
business enterprise that

[[Page 78]]

is or may be eligible to receive reimbursement either directly or 
indirectly from CHAMPUS.
    Extended Care Health Option (ECHO). The TRICARE program of 
supplemental benefits for qualifying active duty family members as 
described in Sec. 199.5.
    External Partnership Agreement. The External Partnership Agreement 
is an agreement between a military treatment facility commander and a 
CHAMPUS authorized institutional provider, enabling Uniformed Services 
health care personnel to provide otherwise covered medical care to 
CHAMPUS beneficiaries in a civilian facility under the Military-Civilian 
Health Services Partnership Program. Authorized costs associated with 
the use of the facility will be financed through CHAMPUS under normal 
cost-sharing and reimbursement procedures currently applicable under the 
basic CHAMPUS.
    External Resource Sharing Agreement. A type External Partnership 
Agreement, established in the context of the TRICARE program by 
agreement of a military medical treatment facility commander and an 
authorized TRICARE contractor. External Resource Sharing Agreements may 
incorporate TRICARE features in lieu of standard CHAMPUS features that 
would apply to standard External Partnership Agreements.
    Extramedical individual providers of care. Individuals who do 
counseling or nonmedical therapy and whose training and therapeutic 
concepts are outside the medical field, as specified in Sec. 199.6 of 
this part.
    Extraordinary physical or psychological condition. A complex 
physical or psychological clinical condition of such severity which 
results in the beneficiary being homebound as defined in this section.
    Facility charge. The term ``facility charge'' means the charge, 
either inpatient or outpatient, made by a hospital or other 
institutional provider to cover the overhead costs of providing the 
service. These costs would include building costs, i.e. depreciation and 
interest; staffing costs; drugs and supplies; and overhead costs, i.e., 
utilities, housekeeping, maintenance, etc.
    Former member. A retiree, deceased member, deceased retiree, or 
deceased reservist in certain circumstances (see section 199.3 for 
additional information related to certain deceased reservists' 
dependents' eligibility). Under conditions specified under Sec. 199.3 
of this part, former member may also include a member of the Uniformed 
Services who has been discharged from active duty (or, in some cases, 
full-time National Guard duty), whether voluntarily or involuntarily, 
under other than adverse conditions and qualifies for CHAMPUS benefits 
under the Transitional Assistance Management Program or the Continued 
Health Care Benefit Program.
    Former spouse. A former husband or wife of a Uniformed Service 
member or former member who meets the criteria as set forth in Sec. 
199.3(b)(2)(ii) of this part.
    Fraud. For purposes of this part, fraud is defined as (1) a 
deception or misrepresentation by a provider, beneficiary, sponsor, or 
any person acting on behalf of a provider, sponsor, or beneficiary with 
the knowledge (or who had reason to know or should have known) that the 
deception or misrepresentation could result in some unauthorized CHAMPUS 
benefit to self or some other person, or some unauthorized CHAMPUS 
payment, or (2) a claim that is false or fictitious, or includes or is 
supported by any written statement which asserts a material fact which 
is false or fictitious, or includes or is supported by any written 
statement that (a) omits a material fact and (b) is false or fictitious 
as a result of such omission and (c) is a statement in which the person 
making, presenting, or submitting such statement has a duty to include 
such material fact. It is presumed that, if a deception or 
misrepresentation is established and a CHAMPUS claim is filed, the 
person responsible for the claim had the requisite knowledge. This 
presumption is rebuttable only by substantial evidence. It is further 
presumed that the provider of the services is responsible for the 
actions of all individuals who file a claim on behalf of the provider 
(for example, billing clerks); this presumption may only be rebutted by 
clear and convincing evidence.

[[Page 79]]

    Freestanding. Not ``institution-affiliated'' or ``institution-
based.''
    Full-time course of higher education. A complete, progressive series 
of studies to develop attributes such as knowledge, skill, mind, and 
character, by formal schooling at a college or university, and which 
meets the criteria set out in Sec. 199.3 of this part. To qualify as 
full-time, the student must be carrying a course load of a minimum of 12 
credit hours or equivalent each semester.
    General staff nursing service. All nursing care (other than that 
provided by private duty nurses) including, but not limited to, general 
duty nursing, emergency room nursing, recovery room nursing, intensive 
nursing care, and group nursing arrangements performed by nursing 
personnel on the payroll of the hospital or other authorized 
institution.
    Good faith payments. Those payments made to civilian sources of 
medical care who provided medical care to persons purporting to be 
eligible beneficiaries but who are determined later to be ineligible for 
CHAMPUS benefits. (The ineligible person usually possesses an erroneous 
or illegal identification card.) To be considered for good faith 
payments, the civilian source of care must have exercised reasonable 
precautions in identifying a person claiming to be an eligible 
beneficiary.
    Habilitation. The provision of functional capacity, absent from 
birth due to congenital anomaly or developmental disorder, which 
facilitates performance of an activity in the manner, or within the 
range considered normal, for a human being.
    Handicap. For the purposes of this part, the term ``handicap'' is 
synonymous with the term ``disability.''
    High-risk pregnancy. A pregnancy is high-risk when the presence of a 
currently active or previously treated medical, anatomical, 
physiological illness or condition may create or increase the likelihood 
of a detrimental effect on the mother, fetus, or newborn and presents a 
reasonable possibility of the development of complications during labor 
or delivery.
    Homebound. A beneficiary's condition is such that there exists a 
normal inability to leave home and, consequently, leaving home would 
require considerable and taxing effort. Any absence of an individual 
from the home attributable to the need to receive health care 
treatment--including regular absences for the purpose of participating 
in therapeutic, psychosocial, or medical treatment in an adult day-care 
program that is licensed or certified by a state, or accredited to 
furnish adult day-care services in the--state shall not disqualify an 
individual from being considered to be confined to his home. Any other 
absence of an individual from the home shall not disqualify an 
individual if the absence is infrequent or of relatively short duration. 
For purposes of the preceding sentence, any absence for the purpose of 
attending a religious service shall be deemed to be an absence of 
infrequent or short duration. Also, absences from the home for non-
medical purposes, such as an occasional trip to the barber, a walk 
around the block or a drive, would not necessarily negate the 
beneficiary's homebound status if the absences are undertaken on an 
infrequent basis and are of relatively short duration. An exception is 
made to the above homebound definitional criteria for beneficiaries 
under the age of 18 and those receiving maternity care. The only 
homebound criteria for these special beneficiary categories is written 
certification from a physician attesting to the fact that leaving the 
home would place the beneficiary at medical risk. In addition to the 
above, absences, whether regular or infrequent, from the beneficiary's 
primary residence for the purpose of attending an educational program in 
a public or private school that is licensed and/or certified by a state, 
shall not negate the beneficiary's homebound status.
    Home health discipline. One of six home health disciplines covered 
under the home health benefit (skilled nursing services, home health 
aide services, physical therapy services, occupational therapy services, 
speech-language pathology services, and medical social services).
    Home health market basket index. An index that reflects changes over 
time in the prices of an appropriate mix of goods and services included 
in home health services.

[[Page 80]]

    Hospice care. Hospice care is a program which provides an integrated 
set of services and supplies designed to care for the terminally ill. 
This type of care emphasizes palliative care and supportive services, 
such as pain control and home care, rather than cure-oriented services 
provided in institutions that are otherwise the primary focus under 
CHAMPUS. The benefit provides coverage for a humane and sensible 
approach to care during the last days of life for some terminally ill 
patients.
    Hospital, acute care (general and special). An institution that 
meets the criteria as set forth in Sec. 199.6(b)(4)(i) of this part.
    Hospital, long-term (tuberculosis, chronic care, or rehabilitation). 
An institution that meets the criteria as set forth in Sec. 
199.6(b)(4)(iii) of this part.
    Hospital, psychiatric. An institution that meets the criteria as set 
forth in Sec. 199.6(b)(4)(ii) of this part.
    Illegitimate child. A child not recognized as a lawful offspring; 
that is, a child born of parents not married to each other.
    Immediate family. The spouse, natural parent, child and sibling, 
adopted child and adoptive parent, stepparent, stepchild, grandparent, 
grandchild, stepbrother and stepsister, father-in-law, mother-in-law of 
the beneficiary, or provider, as appropriate. For purposes of this 
definition only, to determine who may render services to a beneficiary, 
the step-relationship continues to exist even if the marriage upon which 
the relationship is based terminates through divorce or death of one of 
the parents.
    Independent laboratory. A freestanding laboratory approved for 
participation under Medicare and certified by the Health Care Financing 
Administration.
    Infirmaries. Facilities operated by student health departments of 
colleges and universities to provide inpatient or outpatient care to 
enrolled students. When specifically approved by the Director, OCHAMPUS, 
or a designee, a boarding school infirmary also is included.
    Initial determination. A formal written decision on a CHAMPUS claim, 
a request for benefit authorization, a request by a provider for 
approval as an authorized CHAMPUS provider, or a decision disqualifying 
or excluding a provider as an authorized provider under CHAMPUS. 
Rejection of a claim or a request for benefit or provider authorization 
for failure to comply with administrative requirements, including 
failure to submit reasonably requested information, is not an initial 
determination. Responses to general or specific inquiries regarding 
CHAMPUS benefits are not initial determinations.
    In-out surgery. Surgery performed in the outpatient department of a 
hospital or other institutional provider, in a physician's office or the 
office of another individual professional provider, in a clinic, or in a 
``freestanding'' ambulatory surgical center which does not involve a 
formal inpatient admission for a period of 24 hours or more.
    Inpatient. A patient who has been admitted to a hospital or other 
authorized institution for bed occupancy for purposes of receiving 
necessary medical care, with the reasonable expectation that the patient 
will remain in the institution at least 24 hours, and with the 
registration and assignment of an inpatient number or designation. 
Institutional care in connection with in and out (ambulatory) surgery is 
not included within the meaning of inpatient whether or not an inpatient 
number or designation is made by the hospital or other institution. If 
the patient has been received at the hospital, but death occurs before 
the actual admission occurs, an inpatient admission exists as if the 
patient had lived and had been formally admitted.
    Institution-affiliated. Related to a CHAMPUS-authorized 
institutional provider through a shared governing body but operating 
under a separate and distinct license or accreditation.
    Institution-based. Related to a CHAMPUS-authorized institutional 
provider through a shared governing body and operating under a common 
license and shared accreditation.
    Institutional provider. A health care provider which meets the 
applicable requirements established by Sec. 199.6(b) of this part.
    Intensive care unit (ICU). A special segregated unit of a hospital 
in which patients are concentrated by reason of

[[Page 81]]

serious illness, usually without regard to diagnosis. Special lifesaving 
techniques and equipment regularly and immediately are available within 
the unit, and patients are under continuous observation by a nursing 
staff specially trained and selected for the care of this type patient. 
The unit is maintained on a continuing rather than an intermittent or 
temporary basis. It is not a postoperative recovery room nor a 
postanesthesia room. In some large or highly specialized hospitals, the 
ICUs may be further refined for special purposes, such as for 
respiratory conditions, cardiac surgery, coronary care, burn care, or 
neurosurgery. For the purposes of CHAMPUS, these specialized units would 
be considered ICUs if they otherwise conformed to the definition of an 
ICU.
    Intern. A graduate of a medical or dental school serving in a 
hospital in preparation to being licensed to practice medicine or 
dentistry.
    Internal Partnership Agreement. The Internal Partnership Agreement 
is an agreement between a military treatment facility commander and a 
CHAMPUS-authorized civilian health care provider which enables the use 
of civilian health care personnel or other resources to provide medical 
care to CHAMPUS beneficiaries on the premises of a military treatment 
facility under the Military-Civilian Health Services Partnership 
Program. These internal agreements may be established when a military 
treatment facility is unable to provide sufficient health care services 
for CHAMPUS beneficiaries due to shortages of personnel and other 
required resources.
    Internal Resource Sharing Agreement. A type of Internal Partnership 
Agreement, established in the context of the TRICARE program by 
agreement of a military medical treatment facility commander and 
authorized TRICARE contractor. Internal Resource Sharing Agreements may 
incorporate TRICARE features in lieu of standard CHAMPUS features that 
would apply to standard Internal Partnership Agreements.
    Item, Service, or Supply. Includes (1) any item, device, medical 
supply, or service claimed to have been provided to a beneficiary 
(patient) and listed in an itemized claim for CHAMPUS payment or a 
request for payment, or (2) in the case of a claim based on costs, any 
entry or omission in a cost report, books of account, or other documents 
supporting the claim.
    Laboratory and pathological services. Laboratory and pathological 
examinations (including machine diagnostic tests that produce hard-copy 
results) when necessary to, and rendered in connection with medical, 
obstetrical, or surgical diagnosis or treatment of an illness or injury, 
or in connection with well-baby care.
    Legitimized child. A formerly illegitimate child who is considered 
legitimate by reason of qualifying actions recognized in law.
    Licensed practical nurse (L.P.N.). A person who is prepared 
specially in the scientific basis of nursing; who is a graduate of a 
school of practical nursing; whose qualifications have been examined by 
a state board of nursing; and who has been authorized legally to 
practice as an L.P.N. under the supervision of a physician.
    Licensed vocational nurse (L.V.N.) A person who specifically is 
prepared in the scientific basis or nursing; who is a graduate of a 
school of vocational nursing; whose qualifications have been examined by 
a state board of nursing; and who has been authorized legally to 
practice as a L.V.N. under the supervision of a physician.
    Long-term hospital care. Any inpatient hospital stay that exceeds 30 
days.
    Low-risk pregnancy. A pregnancy is low-risk when the basis for the 
ongoing clinical expectation of a normal uncomplicated birth, as defined 
by reasonable and generally accepted criteria of maternal and fetal 
health, is documented throughout a generally accepted course of prenatal 
care.
    Major life activity. Breathing, cognition, hearing, seeing, and age 
appropriate ability essential to bathing, dressing, eating, grooming, 
speaking, stair use, toilet use, transferring, and walking.
    Marriage and family therapist, certified. An extramedical individual 
provider who meets the requirements outlined in Sec. 199.6.
    Maternity care. Care and treatment related to conception, delivery, 
and

[[Page 82]]

abortion, including prenatal and postnatal care (generally through the 
6th post-delivery week), and also including treatment of the 
complications of pregnancy.
    Medicaid. Those medical benefits authorized under Title XIX of the 
Social Security Act provided to welfare recipients and the medically 
indigent through programs administered by the various states.
    Medical. The generally used term which pertains to the diagnosis and 
treatment of illness, injury, pregnancy, and mental disorders by trained 
and licensed or certified health professionals. For purposes of CHAMPUS, 
the term ``medical'' should be understood to include ``medical, 
psychological, surgical, and obstetrical,'' unless it is specifically 
stated that a more restrictive meaning is intended.
    Medical emergency. The sudden and unexpected onset of a medical 
condition or the acute exacerbation of a chronic condition that is 
threatening to life, limb, or sight, and requires immediate medical 
treatment or which manifests painful symptomatology requiring immediate 
palliative efforts to alleviate suffering. Medical emergencies include 
heart attacks, cardiovascular accidents, poisoning, convulsions, kidney 
stones, and such other acute medical conditions as may be determined to 
be medical emergencies by the Director, OCHAMPUS, or a designee. In the 
case of a pregnancy, a medical emergency must involve a sudden and 
unexpected medical complication that puts the mother, the baby, or both, 
at risk. Pain would not, however, qualify a maternity case as an 
emergency, nor would incipient birth after the 34th week of gestation, 
unless an otherwise qualifying medical condition is present. Examples of 
medical emergencies related to pregnancy or delivery are hemorrhage, 
ruptured membrane with prolapsed cord, placenta previa, abruptio 
placenta, presence of shock or unconsciousness, suspected heart attack 
or stroke, or trauma (such as injuries received in an automobile 
accident).
    Medically or psychologically necessary preauthorization. A pre (or 
prior) authorization for payment for medical/surgical or psychological 
services based upon criteria that are generally accepted by qualified 
professionals to be reasonable for diagnosis and treatment of an 
illness, injury, pregnancy, and mental disorder.
    Medical supplies and dressings (consumables). Necessary medical or 
surgical supplies (exclusive of durable medical equipment) that do not 
withstand prolonged, repeated use and that are needed for the proper 
medical management of a condition for which benefits are otherwise 
authorized under CHAMPUS, on either an inpatient or outpatient basis. 
Examples include disposable syringes for a diabetic, colostomy sets, 
irrigation sets, and ace bandages.
    Medically or psychologically necessary. The frequency, extent, and 
types of medical services or supplies which represent appropriate 
medical care and that are generally accepted by qualified professionals 
to be reasonable and adequate for the diagnosis and treatment of 
illness, injury, pregnancy, and mental disorders or that are reasonable 
and adequate for well-baby care.
    Medicare. These medical benefits authorized under Title XVIII of the 
Social Security Act provided to persons 65 or older, certain disabled 
persons, or persons with chronic renal disease, through a national 
program administered by the DHHS, Health Care Financing Administration, 
Medicare Bureau.
    Member. A person on active duty in a Uniformed Service under a call 
or order that does not specify a period of 30 days or less. (For CHAMPUS 
cost-sharing purposes only, a former member who received a dishonorable 
or bad-conduct discharge or was dismissed from a Uniformed Service as a 
result of a court-martial conviction for an offense involving physical 
or emotional abuse or was administratively discharged as a result of 
such an offense is considered a member).
    Mental disorder. For purposes of the payment of CHAMPUS benefits, a 
mental disorder is a nervous or mental condition that involves a 
clinically significant behavioral or psychological syndrome or pattern 
that is associated with a painful symptom, such as distress, and that 
impairs a patient's ability to function in one or more major

[[Page 83]]

life activities. Additionally, the mental disorder must be one of those 
conditions listed in the DSM-III.
    Mental health counselor. An extramedical individual provider who 
meets the requirements outlined in Sec. 199.6.
    Mental health therapeutic absence. A therapeutically planned absence 
from the inpatient setting. The patient is not discharged from the 
facility and may be away for periods of several hours to several days. 
The purpose of the therapeutic absence is to give the patient an 
opportunity to test his or her ability to function outside the inpatient 
setting before the actual discharge.
    Missing in action (MIA). A battle casualty whose whereabouts and 
status are unknown, provided the absence appears to be involuntary and 
the service member is not known to be in a status of unauthorized 
absence.
    Note: Claims for eligible CHAMPUS beneficiaries whose sponsor is 
classified as MIA are processed as dependents of an active duty service 
member.
    Morbid obesity. The body weight is 100 pounds over ideal weight for 
height and bone structure, according to the most current Metropolitan 
Life Table, and such weight is in association with severe medical 
conditions known to have higher mortality rates in association with 
morbid obesity; or, the body weight is 200 percent or more of the ideal 
weight for height and bone structure according to the most current 
Metropolitan Life Table. The associated medical conditions are diabetes 
mellitus, hypertension, cholecystitis, narcolepsy, pickwickian syndrome 
(and other severe respiratory diseases), hypothalmic disorders, and 
severe arthritis of the weight-bearing joints.
    Most-favored rate. The lowest usual charge to any individual or 
third-party payer in effect on the date of the admission of a CHAMPUS 
beneficiary.
    Natural childbirth. Childbirth without the use of chemical induction 
or augmentation of labor or surgical procedures other than episiotomy or 
perineal repair.
    Naturopath. A person who practices naturopathy, that is, a drugless 
system of therapy making use of physical forces such as air, light, 
water, heat, and massage.
    Note: Services of a naturopath are not covered by CHAMPUS.
    NAVCARE clinics. Contractor owned, staffed, and operated primary 
clinics exclusively serving uniformed services beneficiaries pursuant to 
contracts awarded by a Military Department.
    No-fault insurance. No-fault insurance means an insurance contract 
providing compensation for health and medical expenses relating to 
personal injury arising from the operation of a motor vehicle in which 
the compensation is not premised on whom may have been responsible for 
causing such injury. No-fault insurance includes personal injury 
protection and medical payments benefits in cases involving personal 
injuries resulting from operation of a motor vehicle.
    Nonavailability statement. A certification by a commander (or a 
designee) of a Uniformed Services medical treatment facility, recorded 
on DEERS, generally for the reason that the needed medical care being 
requested by a non-TRICARE Prime enrolled beneficiary cannot be provided 
at the facility concerned because the necessary resources are not 
available in the time frame needed.
    Nonparticipating provider. A hospital or other authorized 
institutional provider, a physician or other authorized individual 
professional provider, or other authorized provider that furnished 
medical services or supplies to a CHAMPUS beneficiary, but who did not 
agree on the CHAMPUS claim form to participate or to accept the CHAMPUS-
determined allowable cost or charge as the total charge for the 
services. A nonparticipating provider looks to the beneficiary or 
sponsor for payment of his or her charge, not CHAMPUS. In such cases, 
CHAMPUS pays the beneficiary or sponsor, not the provider.
    North Atlantic Treaty Organization (NATO) member. A military member 
of an armed force of a foreign NATO nation who is on active duty and 
who, in connection with official duties, is stationed in or passing 
through the United States. The foreign NATO nations are Belgium, Canada, 
Denmark, France, Federal Republic of Germany, Greece,

[[Page 84]]

Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, 
Turkey, and the United Kingdom.
    Not-for-profit entity. An organization or institution owned and 
operated by one or more nonprofit corporations or associations formed 
pursuant to applicable state laws, no part of the net earnings of which 
inures, or may lawfully inure, to the benefit of any private shareholder 
or individual.
    Occupational therapist. A person who is trained specially in the 
skills and techniques of occupational therapy (that is, the use of 
purposeful activity with individuals who are limited by physical injury 
of illness, psychosocial dysfunction, developmental or learning 
disabilities, poverty and cultural differences, or the aging process in 
order to maximize independence, prevent disability, and maintain health) 
and who is licensed to administer occupational therapy treatments 
prescribed by a physician.
    Official formularies. A book of official standards for certain 
pharmaceuticals and preparations that are not included in the U.S. 
Pharmacopeia.
    Optometrist (Doctor of Optometry). A person trained and licensed to 
examine and test the eyes and to treat visual defects by prescribing and 
adapting corrective lenses and other optical aids, and by establishing 
programs of exercises.
    Oral surgeon (D.D.S. or D.M.D.). A person who has received a degree 
in dentistry and who limits his or her practice to oral surgery, that 
is, that branch of the healing arts that deals with the diagnosis and 
the surgical correction and adjunctive treatment of diseases, injuries, 
and defects of the mouth, the jaws, and associated structures.
    Orthopedic shoes. Shoes prescribed by an orthopedic surgeon to 
effect changes in foot or feet position and alignment and which are not 
an integral part of a brace.
    Other allied health professionals. Individual professional providers 
other than physicians, dentists, or extramedical individual providers, 
as specified in Sec. 199.6 of this part.
    Other special institutional providers. Certain specialized medical 
treatment facilities, either inpatient or outpatient, other than those 
specifically defined, that provide courses of treatment prescribed by a 
doctor of medicine or osteopathy; when the patient is under the 
supervision of a doctor of medicine or osteopathy during the entire 
course of the inpatient admission or the outpatient treatment; when the 
type and level of care and services rendered by the institution are 
otherwise authorized in this Regulation; when the facility meets all 
licensing or other certification requirements that are extant in the 
jurisdiction in which the facility is located geographically; which is 
accredited by the Joint Commission on Accreditation if an appropriate 
accreditation program for the given type of facility is available; and 
which is not a nursing home, intermediate facility, halfway house, home 
for the aged, or other institution of similar purpose.
    Outpatient. A patient who has not been admitted to a hospital or 
other authorized institution as an inpatient.
    Ownership or control interest. For purposes of Sec. 199.9(f)(1), a 
``person with an ownership or control interest'' is anyone who
    (1) Has directly or indirectly a 5 percent or more ownership 
interest in the entity; or
    (2) Is the owner of a whole or part interest in any mortgage, deed 
of trust, note, or other obligation secured (in whole or in part) by the 
entity or any of the property or assets thereof, which whole or part 
interest is equal to or exceeds 5 percent of the total property and 
assets of the entity; or
    (3) Is an officer or director of the entity if the entity is 
organized as a corporation; or
    (4) Is a partner in the entity if the entity is organized as a 
partnership.
    Partial hospitalization. A treatment setting capable of providing an 
interdisciplinary program of medical therapeutic services at least 3 
hours per day, 5 days per week, which may embrace day, evening, night 
and weekend treatment programs which employ an integrated, comprehensive 
and complementary schedule of recognized treatment approaches. Partial 
hospitalization is a time-limited, ambulatory, active treatment program 
that offers therapeutically intensive, coordinated, and structured 
clinical services within a stable

[[Page 85]]

therapeutic environment. Partial hospitalization is an appropriate 
setting for crisis stabilization, treatment of partially stabilized 
mental health disorders, and a transition from an inpatient program when 
medically necessary. Such programs must enter into a participation 
agreement with CHAMPUS, and be accredited and in substantial compliance 
with the standards of the Mental Health Manual of the Joint Commission 
on Accreditation of Healthcare Organizations (JCAHO) (formerly known as 
the Consolidated Standards).
    Participating provider. A CHAMPUS-authorized provider that is 
required, or has agreed by entering into a CHAMPUS participation 
agreement or by act of indicating ``accept assignment'' on the claim 
form, to accept the CHAMPUS-allowable amount as the maximum total charge 
for a service or item rendered to a CHAMPUS beneficiary, whether the 
amount is paid for fully by CHAMPUS or requires cost-sharing by the 
CHAMPUS beneficiary.
    Part-time or intermittent home health aide and skilled nursing 
services. Part-time or intermittent means skilled nursing and home 
health aide services furnished any number of days per week as long as 
they are furnished (combined) less than 8 hours each day and 28 or fewer 
hours each week (or, subject to review on a case-bay-case basis as to 
the need for care, less than 8 hours each day and 35 or fewer hours per 
week).
    Party to a hearing. An appealing party or parties and CHAMPUS.
    Party to the initial determination. Includes CHAMPUS and also refers 
to a CHAMPUS beneficiary and a participating provider of services whose 
interests have been adjudicated by the initial determination. In 
addition, a provider who has been denied approval as an authorized 
CHAMPUS provider is a party to that initial determination, as is a 
provider who is disqualified or excluded as an authorized provider under 
CHAMPUS, unless the provider is excluded based on a determination of 
abuse or fraudulent practices or procedures under another federal or 
federally funded program. See Sec. 199.10 for additional information 
concerning parties not entitled to administrative review under the 
CHAMPUS appeals and hearing procedures.
    Pastoral counselor. An extramedical individual provider who meets 
the requirements outlined in Sec. 199.6.
    Pharmaceutical Agent. Drugs, biological products, and medical 
devices under the regulatory authority of the Food and Drug 
Administration.
    Pharmacist. A person who is trained specially in the scientific 
basis of pharmacology and who is licensed to prepare and sell or 
dispense drugs and compounds and to make up prescriptions ordered by a 
physician.
    Physical medicine services or physiatry services. The treatment of 
disease or injury by physical means such as massage, hydrotherapy, or 
heat.
    Physical therapist. A person who is trained specially in the skills 
and techniques of physical therapy (that is, the treatment of disease by 
physical agents and methods such as heat, massage, manipulation, 
therapeutic exercise, hydrotherapy, and various forms of energy such as 
electrotherapy and ultrasound), who has been authorized legally (that 
is, registered) to administer treatments prescribed by a physician and 
who is entitled legally to use the designation ``Registered Physical 
Therapist.'' A physical therapist also may be called a physiotherapist.
    Physician. A person with a degree of Doctor of Medicine (M.D.) or 
Doctor of Osteopathy (D.O.) who is licensed to practice medicine by an 
appropriate authority.
    Physician in training. Interns, residents, and fellows participating 
in approved postgraduate training programs and physicians who are not in 
approved programs but who are authorized to practice only in a hospital 
or other institutional provider setting, e.g., individuals with 
temporary or restricted licenses, or unlicensed graduates of foreign 
medical schools.
    Podiatrist (Doctor of Podiatry or Surgical Chiropody). A person who 
has received a degree in podiatry (formerly called chiropody), that is, 
that specialized field of the healing arts that deals with the study and 
care of the foot, including its anatomy, pathology, and medical and 
surgical treatment.

[[Page 86]]

    Preauthorization. A decision issued in writing, or electronically by 
the Director, TRICARE Management Activity, or a designee, that TRICARE 
benefits are payable for certain services that a beneficiary has not yet 
received. The term prior authorization is commonly substituted for 
preauthorization and has the same meaning.
    Prescription drugs and medicines. Drugs and medicines which at the 
time of use were approved for commercial marketing by the U.S. Food and 
Drug Administration, and which, by law of the United States, require a 
physician's or dentist's prescription, except that it includes insulin 
for known diabetics whether or not a prescription is required. Drugs 
grandfathered by the Federal Food, Drug and Cosmetic Act of 1938 may be 
covered under CHAMPUS as if FDA approved. Prescription drugs and 
medicines may also be referred to as ``pharmaceutical agents''.

    Note: The fact that the U.S. Food and Drug Administration has 
approved a drug for testing on humans would not qualify it within this 
definition.

    Preventive care. Diagnostic and other medical procedures not related 
directly to a specific illness, injury, or definitive set of symptoms, 
or obstetrical care, but rather performed as periodic health screening, 
health assessment, or health maintenance.
    Primary caregiver. An individual who renders to a beneficiary 
services to support the activities of daily living (as defined in Sec. 
199.2) and specific services essential to the safe management of the 
beneficiary's condition.
    Primary payer. The plan or program whose medical benefits are 
payable first in a double coverage situation.
    PRIMUS clinics. Contractor owned, staffed, and operated primary care 
clinics exclusively serving uniformed services beneficiaries pursuant to 
contracts awarded by a Military Department.
    Private room. A room with one bed that is designated as a private 
room by the hospital or other authorized institutional provider.
    Profound hearing loss (adults). An ``adult'' (a spouse as defined in 
section 32 CFR 199.3(b) of this part of a member of the Uniformed 
Services on active duty for more than 30 days) with a hearing threshold 
of:
    (1) 40 dB HL or greater in one or both ears when tested at 500, 
1,000, 1,500, 2,000, 3,000, or 4,000Hz; or
    (2) 26 dB HL or greater in one or both ears at any three or more of 
those frequencies; or
    (3) A speech recognition score less than 94 percent.
    Profound hearing loss (children). A ``child'' (an unmarried child of 
an active duty member who otherwise meets the criteria (including age 
requirements) in 32 CFR 199.3 of this part) with a 26dB HL or greater 
hearing threshold level in one or both ears when tested in the frequency 
range at 500, 1,000, 2,000, 3,000 or 4,000 Hz.
    Progress notes. Progress notes are an essential component of the 
medical record wherein health care personnel provide written evidence of 
ordered and supervised diagnostic tests, treatments, medical procedures, 
therapeutic behavior and outcomes. In the case of mental health care, 
progress notes must include: the date of the therapy session; length of 
the therapy session; a notation of the patient's signs and symptoms; the 
issues, pathology and specific behaviors addressed in the therapy 
session; a statement summarizing the therapeutic interventions attempted 
during the therapy session; descriptions of the response to treatment, 
the outcome of the treatment, and the response to significant others; 
and a statement summarizing the patient's degree of progress toward the 
treatment goals. Progress notes do not need to repeat all that was said 
during a therapy session but must document a patient contact and be 
sufficiently detailed to allow for both peer review and audits to 
substantiate the quality and quantity of care rendered.
    Prosthetic device (prosthesis). An artificial substitute for a 
missing body part.
    Prosthetic or Prosthetic device (prosthesis). A prosthetic or 
prosthetic device (prosthesis) determined by the Secretary of Defense to 
be necessary because of significant conditions resulting from trauma, 
congenital anomalies, or diseases.
    Prosthetic supplies. Supplies that are necessary for the effective 
use of a prosthetic or prosthetic device.

[[Page 87]]

    Provider. A hospital or other institutional provider, a physician, 
or other individual professional provider, or other provider of services 
or supplies as specified in Sec. 199.6 of this part.
    Provider exclusion and suspension. The terms ``exclusion'' and 
``suspension'', when referring to a provider under CHAMPUS, both mean 
the denial of status as an authorized provider, resulting in items, 
services, or supplies furnished by the provider not being reimbursed, 
directly or indirectly, under CHAMPUS. The terms may be used 
interchangeably to refer to a provider who has been denied status as an 
authorized CHAMPUS provider based on (1) a criminal conviction or civil 
judgment involving fraud, (2) an administrative finding of fraud or 
abuse under CHAMPUS, (3) an administrative finding that the provider has 
been excluded or suspended by another agency of the Federal Government, 
a state, or a local licensing authority, (4) an administrative finding 
that the provider has knowingly participated in a conflict of interest 
situation, or (5) an administrative finding that it is in the best 
interests of the CHAMPUS or CHAMPUS beneficiaries to exclude or suspend 
the provider.
    Provider termination. When a provider's status as an authorized 
CHAMPUS provider is ended, other than through exclusion or suspension, 
based on a finding that the provider does not meet the qualifications, 
as set forth in Sec. 199.6 of this part, to be an authorized CHAMPUS 
provider.
    Psychiatric emergency. A psychiatric inpatient admission is an 
emergency when, based on a psychiatric evaluation performed by a 
physician (or other qualified mental health care professional with 
hospital admission authority), the patient is at immediate risk of 
serious harm to self or others as a result of a mental disorder and 
requires immediate continuous skilled observation at the acute level of 
care.
    Public facility. A public authority or entity legally constituted 
within a State (as defined in this section) to administer, control or 
perform a service function for public health, education or human 
services programs in a city, county, or township, special district, or 
other political subdivision, or such combination of political 
subdivisions or special districts or counties as are recognized as an 
administrative agency for a State's public health, education or human 
services programs, or any other public institution or agency having 
administrative control and direction of a publicly funded health, 
education or human services program.
    Public facility adequacy. An available public facility shall be 
considered adequate when the Director, OCHAMPUS, or designee, determines 
that the quality, quantity, and frequency of an available service or 
item otherwise allowable as a CHAMPUS benefit is sufficient to meet the 
beneficiary's specific disability related need in a timely manner.
    Public facility availability. A public facility shall be considered 
available when the public facility usually and customarily provides the 
requested service or item to individuals with the same or similar 
disability related need as the otherwise equally qualified CHAMPUS 
beneficiary.
    Qualified accreditation organization. A not-for-profit corporation 
or a foundation that:
    (1) Develops process standards and outcome standards for health care 
delivery programs, or knowledge standards and skill standards for health 
care professional certification testing, using experts both from within 
and outside of the health care program area or individual specialty to 
which the standards are to be applied;
    (2) Creates measurable criteria that demonstrate compliance with 
each standard;
    (3) Publishes the organization's standards, criteria and evaluation 
processes so that they are available to the general public;
    (4) Performs on-site evaluations of health care delivery programs, 
or provides testing of individuals, to measure the extent of compliance 
with each standard;
    (5) Provides on-site evaluation or individual testing on a national 
or international basis;
    (6) Provides to evaluated programs and tested individuals time-
limited written certification of compliance with the organization's 
standards;

[[Page 88]]

    (7) Excludes certification of any program operated by an 
organization which has an economic interest, as defined in this section, 
in the accreditation organization or in which the accreditation 
organization has an economic interest;
    (8) Publishes promptly the certification outcomes of each program 
evaluation or individual test so that it is available to the general 
public; and
    (9) Has been found by the Director, OCHAMPUS, or designee, to apply 
standards, criteria, and certification processes which reinforce CHAMPUS 
provider authorization requirements and promote efficient delivery of 
CHAMPUS benefits.
    Radiation therapy services. The treatment of diseases by x-ray, 
radium, or radioactive isotopes when ordered by the attending physician.
    Rare diseases. CHAMPUS defines a rare disease as one which affects 
fewer than one in 200,000 Americans.
    Referral. The act or an instance of referring a CHAMPUS beneficiary 
to another authorized provider to obtain necessary medical treatment. 
Under CHAMPUS, only a physician may make referrals.
    Registered nurse. A person who is prepared specially in the 
scientific basis of nursing, who is a graduate of a school of nursing, 
and who is registered for practice after examination by a state board of 
nurse examiners or similar regulatory authority, who holds a current, 
valid license, and who is entitled legally to use the designation R.N.
    Rehabilitation. The reduction of an acquired loss of ability to 
perform an activity in the manner, or within the range considered 
normal, for a human being.
    Rehabilitative therapy. Any rehabilitative therapy that is necessary 
to improve, restore, or maintain function, or to minimize or prevent 
deterioration of function, of a patient and prescribed by a physician.
    Reliable evidence. (1) As used in Sec. 199.4(g)(15), the term 
reliable evidence means only:
    (i) Well controlled studies of clinically meaningful endpoints, 
published in refereed medical literature.
    (ii) Published formal technology assessments.
    (iii) The published reports of national professional medical 
associations.
    (iv) Published national medical policy organization positions; and
    (v) The published reports of national expert opinion organizations.
    (2) The hierarchy of reliable evidence of proven medical 
effectiveness, established by (1) through (5) of this paragraph, is the 
order of the relative weight to be given to any particular source. With 
respect to clinical studies, only those reports and articles containing 
scientifically valid data and published in the refereed medical and 
scientific literature shall be considered as meeting the requirements of 
reliable evidence. Specifically not included in the meaning of reliable 
evidence are reports, articles, or statements by providers or groups of 
providers containing only abstracts, anecdotal evidence or personal 
professional opinions. Also not included in the meaning of reliable 
evidence is the fact that a provider or a number of providers have 
elected to adopt a drug, device, or medical treatment or procedure as 
their personal treatment or procedure of choice or standard of practice.
    Representative. Any person who has been appointed by a party to the 
initial determination as counsel or advisor and who is otherwise 
eligible to serve as the counsel or advisor of the party to the initial 
determination, particularly in connection with a hearing.
    Reservist. A person who is under an active duty call or order to one 
of the Uniformed Services for a period of 30 days or less or is on 
inactive training.
    Resident (medical). A graduate physician or dentist who has an M.D. 
or D.O. degree, or D.D.S. or D.M.D. degree, respectively, is licensed to 
practice, and who choose to remain on the house staff of a hospital to 
get further training that will qualify him or her for a medical or 
dental specialty.
    Residential treatment center (RTC). A facility (or distinct part of 
a facility) which meets the criteria in Sec. 199.6(b)(4)(v).
    Respite care. Respite care is short-term care for a patient in order 
to provide rest and change for those who have been caring for the 
patient at home, usually the patient's family.

[[Page 89]]

    Retiree. A member or former member of a Uniformed Service who is 
entitled to retired, retainer, or equivalent pay based on duty in a 
Uniformed Service.
    Routine eye examinations. The services rendered in order to 
determine the refractive state of the eyes.
    Sanction. For purpose of Sec. 199.9, ``sanction'' means a provider 
exclusion, suspension, or termination.
    Secondary payer. The plan or program whose medical benefits are 
payable in double coverage situations only after the primary payer has 
adjudicated the claim.
    Semiprivate room. A room containing at least two beds. If a room is 
designated publicly as a semiprivate accommodation by the hospital or 
other authorized institutional provider and contains multiple beds, it 
qualifies as a semiprivate room for the purposes of CHAMPUS.
    Serious physical disability. Any physiological disorder or condition 
or anatomical loss affecting one or more body systems which has lasted, 
or with reasonable certainty is expected to last, for a minimum period 
of 12 contiguous months, and which precludes the person with the 
disorder, condition or anatomical loss from unaided performance of at 
least one Major Life Activity as defined in this section.
    Skilled nursing facility. An institution (or a distinct part of an 
institution) that meets the criteria as set forth in Sec. 
199.6(b)(4)(vi).
    Skilled nursing services. Skilled nursing services includes 
application of professional nursing services and skills by an RN, LPN, 
or LVN, that are required to be performed under the general supervision/
direction of a TRICARE-authorized physician to ensure the safety of the 
patient and achieve the medically desired result in accordance with 
accepted standards of practice.
    Spectacles, eyeglasses, and lenses. Lenses, including contact 
lenses, that help to correct faulty vision.
    Speech generating device (SGD). See Augmentative Communication 
Device.
    Sponsor. A member or former member of a Uniformed Service upon whose 
status his or her dependents' eligibility for CHAMPUS is based. A 
sponsor also includes a person who, while a member of the Uniformed 
Services and after becoming eligible to be retired on the basis of years 
of service, has his or her eligibility to receive retired pay terminated 
as a result of misconduct involving abuse of a spouse or dependent 
child. It also includes NATO members who are stationed in or passing 
through the United States on official business when authorized. It also 
includes individuals eligible for CHAMPUS under the Transitional 
Assistance Management Program.
    Spouse. A lawful husband or wife, who meets the criteria in Sec. 
199.3 of this part, regardless of whether or not dependent upon the 
member or former member for his or her own support.
    State. For purposes of this part, any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
of the Northern Mariana Islands, and each territory and possession of 
the United States.
    State victims of crime compensation programs. Benefits available to 
victims of crime under the Violent Crime Control and Law Enforcement 
Act.
    Student status. A dependent of a member or former member of a 
Uniformed Service who has not passed his or her 23rd birthday, and is 
enrolled in a full-time course of study in an institution of higher 
learning.
    Supplemental insurance plan. A health insurance policy or other 
health benefit plan offered by a private entity to a CHAMPUS 
beneficiary, that primarily is designed, advertised, marketed, or 
otherwise held out as providing payment for expenses incurred for 
services and items that are not reimbursed under CHAMPUS due to program 
limitations, or beneficiary liabilities imposed by law. CHAMPUS 
recognizes two types of supplemental plans, general indemnity plans, and 
those offered through a direct service health maintenance organization 
(HMO).
    (1) An indemnity supplemental insurance plan must meet all of the 
following criteria:
    (i) It provides insurance coverage, regulated by state insurance 
agencies, which is available only to beneficiaries of CHAMPUS.

[[Page 90]]

    (ii) It is premium based and all premiums relate only to the CHAMPUS 
supplemental coverage.
    (iii) Its benefits for all covered CHAMPUS beneficiaries are 
predominantly limited to non-covered services, to the deductible and 
cost-shared portions of the pre-determined allowable charges, and/or to 
amounts exceeding the allowable charges for covered services.
    (iv) It provides insurance reimbursement by making payment directly 
to the CHAMPUS beneficiary or to the participating provider.
    (v) It does not operate in a manner which results in lower 
deductibles or cost-shares than those imposed by law, or that waives the 
legally imposed deductibles or cost-shares.
    (2) A supplemental insurance plan offered by a Health Maintenance 
Organization (HMO) must meet all of the following criteria:
    (i) The HMO must be authorized and must operate under relevant 
provisions of state law.
    (ii) The HMO supplemental plan must be premium based and all 
premiums must relate only to CHAMPUS supplemental coverage.
    (iii) The HMO's benefits, above those which are directly reimbursed 
by CHAMPUS, must be limited predominantly to services not covered by 
CHAMPUS and CHAMPUS deductible and cost-share amounts.
    (iv) The HMO must provide services directly to CHAMPUS beneficiaries 
through its affiliated providers who, in turn, are reimbursed by 
CHAMPUS.
    (v) The HMO's premium structure must be designed so that no overall 
reduction in the amount of the beneficiary deductibles or cost-shares 
will result.
    Suppliers of portable X-ray services. A supplier that meets the 
conditions of coverage of the Medicare program, set forth in the 
Medicare regulations (42 CFR 405.1411 through 405.1416 (as amended)) or 
the Medicaid program in the state in which the covered service is 
provided.
    Surgery. Medically appropriate operative procedures, including 
related preoperative and postoperative care; reduction of fractures and 
dislocations; injections and needling procedures of the joints; laser 
surgery of the eye; and those certain procedures listed in Sec. 
199.4(c)(2)(i) of this part.
    Surgical assistant. A physician (or dentist or podiatrist) who 
assists the operating surgeon in the performance of a covered surgical 
service when such assistance is certified as necessary by the attending 
surgeon, when the type of surgical procedure being performed is of such 
complexity and seriousness as to require a surgical assistant, and when 
interns, residents, or other house staff are not available to provide 
the surgical assistance services in the specialty area required.
    Suspension of claims processing. The temporary suspension of 
processing (to protect the government's interests) of claims for care 
furnished by a specific provider (whether the claims are submitted by 
the provider or beneficiary) or claims submitted by or on behalf of a 
specific CHAMPUS beneficiary pending action by the Director, OCHAMPUS, 
or a designee, in a case of suspected fraud or abuse. The action may 
include the administrative remedies provided for in Sec. 199.9 or any 
other Department of Defense issuance (e.g. DoD issuances implementing 
the Program Fraud Civil Remedies Act), case development or investigation 
by OCHAMPUS, or referral to the Department of Defense-Inspector General 
or the Department of Justice for action within their cognizant 
jurisdictions.
    Teaching physician. A teaching physician is any physician whose 
duties include providing medical training to physicians in training 
within a hospital or other institutional provider setting.
    Third-party payer. Third-payer means an entity that provides an 
insurance, medical service, or health plan by contract or agreement, 
including an automobile liability insurance or no fault insurance 
carrier and a worker's compensation program or plan, and any other plan 
or program (e.g., homeowners insurance) that is designed to provide 
compensation or coverage for expenses incurred by a beneficiary for 
medical services or supplies. For purposes of the definition of ``third-
party payer,'' an insurance, medical service, or health plan includes a 
preferred provider organization, an insurance plan

[[Page 91]]

described as Medicare supplemental insurance, and a personal injury 
protection plan or medical payments benefit plan for personal injuries 
resulting from the operation of a motor vehicle.

    Note: TRICARE is secondary payer to all third-party payers. Under 
limited circumstances described in Sec. 199.8(c)(2) of this part, 
TRICARE payment may be authorized to be paid in advance of adjudication 
of the claim by certain third-party payers. TRICARE advance payments 
will not be made when a third-party provider is determined to be a 
primary medical insurer under Sec. 199.8(c)(3) of this part.''

    Timely filing. The filing of CHAMPUS claims within the prescribed 
time limits as set forth in Sec. 199.7 of this part.
    Transitional Assistance Management Program (TAMP). The program 
established under 10 U.S.C. Sec. 1145(a) and Sec. 199.3(e) of this 
part.
    Treatment plan. A detailed description of the medical care being 
rendered or expected to be rendered a CHAMPUS beneficiary seeking 
approval for inpatient benefits for which preauthorization is required 
as set forth in Sec. 199.4(b) of this part. A treatment plan must 
include, at a minimum, a diagnosis (either ICD-9-CM or DSM-III); 
detailed reports of prior treatment, medical history, family history, 
social history, and physical examination; diagnostic test results; 
consultant's reports (if any); proposed treatment by type (such as 
surgical, medical, and psychiatric); a description of who is or will be 
providing treatment (by discipline or specialty); anticipated frequency, 
medications, and specific goals of treatment; type of inpatient facility 
required and why (including length of time the related inpatient stay 
will be required); and prognosis. If the treatment plan involves the 
transfer of a CHAMPUS patient from a hospital or another inpatient 
facility, medical records related to that inpatient stay also are 
required as a part of the treatment plan documentation.
    TRICARE extra plan. The health care option, provided as part of the 
TRICARE program under Sec. 199.17, under which beneficiaries may choose 
to receive care in facilities of the uniformed services, or from special 
civilian network providers (with reduced cost sharing), or from any 
other CHAMPUS-authorized provider (with standard cost sharing).
    TRICARE prime plan. The health care option, provided as part of the 
TRICARE program under Sec. 199.17, under which beneficiaries enroll to 
receive all health care from facilities of the uniformed services and 
civilian network providers (with civilian care subject to substantially 
reduced cost sharing.
    TRICARE program. The program establish under Sec. 199.17.
    TRICARE Reserve Select. The program established under 10 U.S.C. 
1076d and Sec. 199.24 of this Part.
    TRICARE standard plan. The health care option, provided as part of 
the TRICARE program under Sec. 199.17, under which beneficiaries are 
eligible for care in facilities of the uniformed services and CHAMPUS 
under standard rules and procedures.
    Uniform HMO benefit. The health care benefit established by Sec. 
199.18.
    Uniformed Services. The Army, Navy, Air Force, Marine Corps, Coast 
Guard, Commissioned Corps of the USPHS, and the Commissioned Corps of 
the NOAA.
    Unlabeled or Off-label drugs. Food and Drug Administration (FDA) 
approved drugs that are used for indications or treatments not included 
in the approved labeling. The drug must be medically necessary for the 
treatment of the condition for which it is administered, according to 
accepted standards of medical practice.
    Veteran. A person who served in the active military, naval, or air 
service, and who was discharged or released therefrom under conditions 
other than dishonorable.
    Note: Unless the veteran is eligible for ``retired pay,'' 
``retirement pay,'' or ``retainer pay,'' which refers to payments of a 
continuing nature and are payable at fixed intervals from the government 
for military service neither the veteran nor his or her dependents are 
eligible for benefits under CHAMPUS.
    Waiver of benefit limits. Extension of current benefit limitations 
under the Case Management Program, of medical care, services, and/or 
equipment, not otherwise a benefit under the TRICARE/CHAMPUS program.

[[Page 92]]

    Well-child care. A specific program of periodic health screening, 
developmental assessment, and routine immunization for dependents under 
six years of age.
    Widow or Widower. A person who was a spouse at the time of death of 
a member or former member and who has not remarried.
    Worker's compensation benefits. Medical benefits available under any 
worker's compensation law (including the Federal Employees Compensation 
Act), occupational disease law, employers liability law, or any other 
legislation of similar purpose, or under the maritime doctrine of 
maintenance, wages, and cure.
    X-ray services. An x-ray examination from which an x-ray film or 
other image is produced, ordered by the attending physician when 
necessary and rendered in connection with a medical or surgical 
diagnosis or treatment of an illness or injury, or in connection with 
maternity or well-baby care.

[51 FR 24008, July 1, 1986]

    Editorial Note: For Federal Register citations affecting Sec. 
199.2, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

    Editorial Note: At 66 FR 45172, Aug. 28, 2001, Sec. 199.2, was 
amended in part by revising the definition of ``Director, OCHAMPUS''; 
however, this amendment could not be incorporated due to inaccurate 
amendatory instruction.