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GAO-17-335R 1 (2016-12-28)

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G      A             U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-328692



December 28, 2016

The Honorable Johnny Isakson
Chairman
The Honorable Richard Blumenthal
Ranking Member
Committee on Veterans' Affairs
United States Senate

The Honorable Jeff Miller
Chairman
The Honorable Mark Takano
Acting Ranking Member
Committee on Veterans' Affairs
House of Representatives

Subject: Department of Veterans Affairs: Tiered Pharmacy Copayments for Medications

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 Veterans Affairs (VA) entitled Tiered Pharmacy Copayments
for Medications (RIN: 2900-AP35). We received the rule on December 15, 2016. It was
published in the Federal Register as a final rule on December 12, 2016. 81 Fed. Reg. 89,383.

The final rule amends regulations concerning copayments charged to certain veterans for
medication required on an outpatient basis to treat nonservice-connected conditions. The final
rule establishes three classes of medications for copayment purposes, identified as Tier 1,
Tier 2, and Tier 3. These tiers are distinguished in part based on whether the medications are
available from multiple sources, or a single source, with some exceptions. The following
copayment amounts are fixed and would vary depending upon the class of medication: $5 for a
30-day or less supply of a Tier 1 medication, $8 for a 30-day or less supply of a Tier 2
medication, and $11 for a 30-day or less supply of a Tier 3 medication. According to VA, for
non-exempt veterans these copayment amounts will result in lower out-of-pocket costs, thereby
encouraging greater adherence to taking prescribed medications and reduce the risk of
fragmented care that results when veterans use non-VA pharmacies. The final rule is effective
on February 27, 2017.

Enclosed is our assessment of VA's compliance with the procedural steps required by section
801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review of the procedural steps
taken indicates that VA complied with the applicable requirements.


GAO-17-335R

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