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Federal Register / Vol. 86, No. 227 / Tuesday, November 30, 2021 / Rules and Regulations alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distribute impacts, and equity.
E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a non-significant regulatory action, although, not determined to be economically significant, under section 3f of E.O.
12866. Accordingly, the rule has not been reviewed by the Office of Management and Budget. This rule is not economically significant as its effect on the economy is less than $100
million, will not materially adversely affect the economy, a sector of the economy; productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities. Net benefit is supported by the Defense Health Agencys mission of complying with all NDAA constraints and providing the best health care options to beneficiaries.
b. Summary This rule amends the current TRICARE regulation which, consistent with 10 U.S.C. 1076d prior to NDAA
2020 amendment, excluded from TRS
eligibility any Selected Reserve member who was also enrolled in, or eligible for a health benefit plan under the Federal Employee Health Benefits program under 5 U.S.C. chapter 89, section 8903.
According to NDAA2020, this exclusion will be repealed and these government employees will be eligible for coverage under TRS beginning January 1, 2030, provided they meet all other TRS eligibility requirements.

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c. Affected Population This rulemaking action will apply to an employee of the Federal Government who, under 5 U.S.C. chapter 89, is eligible for the Federal Employee Health Benefit Program and eligible for TRS as described by 32 CFR 199.24b, Qualifications for TRICARE Reserve Select coverage. These specific beneficiaries will have the option to enroll in TRS beginning January 1, 2030.
This enrollment will be voluntary, and will proceed through established enrollment procedures. The affected population will receive notification of this rule change via publication of this final rule and by TRS program literature published by the Defense Health Agency and distributed by TRICARE regional managed care support contractors.

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d. Costs The Future Years Defense Program FYDP only projects five years into the future, thus, an accurate estimate of monetary cost to the government cannot be done. Projections templated over FY2020 through FY2025 project cost savings to the DoD in excess of $10
million per fiscal year FY. This net takes into consideration the revenue lost through fewer Federal Employees Health FEHB Program plan premium contributions and assumes that approximately 33% of employees eligible to switch from their current FEHB Program plan to TRS will do so.
Again, these projections are for FY2020
FY2025, and this rule is not to be implemented until calendar year 2030.
The administrative costs of this rule are assessed as only including increased customer service queries and beneficiary education required to ensure beneficiaries have all the necessary information to make an informed decision. Administrative processes to manage plan changes triggered by this rule are already in place.
There is no projected cost to the public. Should they decide to change health plans, employees affected by this rule may experience cost savings due to lower premiums, catastrophic cap, deductible, and other cost shares.
However, these savings are subject to plan specifics at the time of rule implementation.
e. Benefits Extending TRS eligibility to Federal employees increases health care options for beneficiaries, especially through the preferred-provider network PPN.
Depending on their health care needs, the PPN provided by TRS may increase access to care for eligible Federal employees who choose to enroll. The projected monetary cost saving to the government, still to be itemized, is the final important benefit; this rulemaking action frees up Government funds for appropriate reallocation.
f. Alternatives Alternative 1: No action. Not implementing this rule would be in direct violation of the law set forth in NDAA2020 requiring TRS to be an option for eligible Federal employees who desire to enroll in TRS coverage beginning January 1, 2030. The result of taking no action would be continued cost to the government in the form of FEHB plans that could have been transferred to TRS beginning in CY2030.
Cost to beneficiaries would be the loss of additional coverage options and likely increased health care out-of-

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pocket costs. There is no benefit to taking no action and the Department has no discretion to forgo compliance with the law requiring this rulemaking action.
Alternative 2: Postponed action.
Postponement of rulemaking would result in inconsistency between the TRICARE regulation and the controlling statute. The statute is self-executing and was effective upon enactment of NDAA2020 on December 20, 2019.
Delaying rulemaking to conform the regulation with the law will result in inaccurate information available to the public regarding statutory eligibility for TRS coverage.
Public Law 96354, Regulatory Flexibility Act 5 U.S.C. 601
The Department of Defense certifies that this final rule is not subject to the Regulatory Flexibility Act 5 U.S.C. 601
because it would not, if promulgated, have a significant economic impact on a substantial number of small entities.
Therefore, the Regulatory Flexibility Act, as amended, does not require us to prepare a regulatory flexibility analysis.
C. Congressional Review Act The Congressional Review Act, 5
U.S.C. 801 et seq., as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. DoD will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. This final rule is not a major rule as defined by 5 U.S.C.
8042.
D. Sec. 202, Public Law 1044, Unfunded Mandates Reform Act Section 202 of the Unfunded Mandates Reform Act of 1995 UMRA
2 U.S.C. 1532 requires agencies to assess anticipated costs and benefits before issuing any rule whose mandates require spending in any 1 year of $100
million in 1995 dollars, updated annually for inflation. This final rule will not mandate any requirements for State, local, or tribal governments, nor will affect private sector costs.
E. Public Law 96511, Paperwork Reduction Act 44 U.S.C. Chapter 35
It has been determined that 32 CFR
199.24 does not impose reporting or
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