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GAO-09-533R 1 (2009-04-03)

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T I   IAccountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548

          B-317970


          April 3, 2009

          The Honorable Carl Levin
          Chairman
          The Honorable John McCain
          Ranking Minority Member
          Committee on Armed Services
          United States Senate

          The Honorable Ike Skelton
          Chairman
          The Honorable John M. McHugh
          Ranking Minority Member
          Committee on Armed Services
          House of Representatives

          Subject: Department of Defense, Office of the Secretaiy Civilian Health and Medical
                  Program of the Uniformed Services (CHAMPUS)/TRICARE: Inclusion of
                  TRICARE Retail Pharmacy Program in Federal Procurement of
                  Pharmaceuticals

          Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Defense (DoD), Office of the
          Secretary, entitled Civilian Health and Medical Program of the Uniformed Services
          (CHAMPUS)/TRICARE: Inclusion of TRICARE Retail Pharmacy Program in Federal
          Procurement of Pharmaceuticals (RIN: 0720-AB22). We received the rule on
          March 19, 2009. It was published in the Federal Register as a final rule on March 17,
          2009. 74 Fed. Reg. 11,279.

          The final rule implements section 703 of the National Defense Authorization Act for
          Fiscal Year 2008, and provides that with respect to any prescription filled on or after
          the date of enactment, the TRICARE Retail Pharmacy Program shall be treated as an
          element of DoD for purposes of the procurement of drugs by federal agencies under
          section 8126 of title 38, United States Code. The rule seeks to ensure that
          pharmaceuticals paid for by DoD that are provided by network retail pharmacies
          under the program to eligible covered beneficiaries are subject to the pricing
          standards in section 8126. The final rule is effective on May 26, 2009.


GAO-09-533R

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