Proposed Rule2024-16238
Servicemembers' Group Life Insurance Traumatic Injury Protection Program Amendments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 24, 2024
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) proposes to amend its regulations that govern the Servicemembers' Group Life Insurance (SGLI) Traumatic Injury Protection (TSGLI) program to correct an unintended amendment that was made in a recent rulemaking amending the TSGLI Schedule of Losses for payments for inability to perform at least two activities of daily living (ADL) as a result of a traumatic injury other than a traumatic brain injury.
Full Text
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<title>Federal Register, Volume 89 Issue 142 (Wednesday, July 24, 2024)</title>
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[Federal Register Volume 89, Number 142 (Wednesday, July 24, 2024)]
[Proposed Rules]
[Pages 59865-59866]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16238]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AS12
Servicemembers' Group Life Insurance Traumatic Injury Protection
Program Amendments
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its
regulations that govern the Servicemembers' Group Life Insurance (SGLI)
Traumatic Injury Protection (TSGLI) program to correct an unintended
amendment that was made in a recent rulemaking amending the TSGLI
Schedule of Losses for payments for inability to perform at least two
activities of daily living (ADL) as a result of a traumatic injury
other than a traumatic brain injury.
DATES: Comments must be received on or before September 23, 2024,
ADDRESSES: Comments must be submitted through <a href="http://www.regulations.gov">www.regulations.gov</a>.
Except as provided below, comments received before the close of the
comment period will be available at <a href="http://www.regulations.gov">www.regulations.gov</a> for public
viewing, inspection, or copying, including any personally identifiable
or confidential business information that is included in a comment. We
post the comments received before the close of the comment period on
<a href="http://www.regulations.gov">www.regulations.gov</a> as soon as possible after they have been received.
VA will not post on <a href="http://Regulations.gov">Regulations.gov</a> public comments that make threats
to individuals or institutions or suggest that the commenter will take
actions to harm an individual. VA encourages individuals not to submit
duplicative comments; however, we will post comments from multiple
unique commenters even if the content is identical or nearly identical
to other comments. Any public comment received after the comment
period's closing date is considered late and will not be considered in
the final rulemaking. In accordance with the Providing Accountability
Through Transparency Act of 2023, a 100 word Plain-Language Summary of
this proposed rule is available at <a href="http://Regulations.gov">Regulations.gov</a>, under RIN 2900-
AS12.
FOR FURTHER INFORMATION CONTACT: Paul Weaver, Insurance Specialist,
Department of Veterans Affairs Insurance Service (310/290B), 5000
Wissahickon Avenue, Philadelphia, PA 19144, (215) 842-2000, ext. 4263.
(This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: TSGLI provides up to $100,000 of traumatic
injury coverage to all servicemembers enrolled in SGLI, and the
coverage provides a financial benefit to seriously injured SGLI
insureds to assist them with expenses incurred during long periods of
recovery and rehabilitation.
On March 15, 2023, VA published a final rule in the Federal
Register, 88 FR 15,907, that amended its regulations governing the
TSGLI program. Among other things, VA recodified the schedule and
amended the eligibility standards for certain losses covered under the
schedule. Following publication of the final rule, VA discovered that
it had inadvertently changed the Schedule of Losses for inability to
perform at least two ADLs as a result of a traumatic injury other than
a traumatic brain injury. Neither the preamble to the proposed rule nor
the preamble to the final rule addressed this change to the TSGLI
regulation. See 85 FR 50,973; 88 FR 15,907.
The current TSGLI Schedule of Losses, as published in the 2023
final rule referenced above, includes a new interval for payment at the
15th consecutive day of ADL loss. 38 CFR 9.21(c)(20) (a ``[t]raumatic
injury, other than traumatic brain injury, resulting in inability to
perform at least 2 activities of daily living . . . [is] payable at the
15th consecutive day of ADL loss [at] $25,000''). The payment schedule
retains the original text for the tiered eligibility standards for
payments at the 30th, 60th, and 90th consecutive-day intervals, but it
does not include payment at the 120th consecutive-day interval.
VA implemented the TSGLI program in December 2005 (see 70 FR
75,940, 75,947), and from that time until the 2023 final rule, VA had
applied the same tiered schedule for amounts payable under the TSGLI
schedule for an inability to perform at least two ADLs as a result of a
traumatic injury other than a traumatic brain injury: $25,000 at the
30th consecutive day of the inability to perform ADLs, with additional
payments of $25,000 each at the 60th, 90th, and 120th consecutive day
intervals thereafter. This scheduled loss was initially codified at 38
CFR 9.20(e)(7)(xliv), and although the scheduled loss was recodified in
subsequent amendments to the TSGLI regulations, VA did not intend to
change the tiered schedule for TSGLI payments for an inability to
perform ADLs as a result of a traumatic injury other than a traumatic
brain injury.
In its recent review of the TSGLI regulation prior to the 2023
final rule, VA determined that the TSGLI payment range for the
scheduled losses did not warrant amendment, noting that the then-
existing payment amounts in the regulation exceeded payouts under many
commercial accidental death and dismemberment insurance policies on
which VA's schedule was based and was consistent with Congress's intent
concerning VA's administration of the program. See 88 FR 15,908
(discussing VA's decision not to change the TSGLI payment schedule).
VA has considered but declines to adopt the changed tiered schedule
for payments based on the loss of ADLs due to traumatic injury other
than brain injury listed in current 38 CFR 9.21(c)(20), which is the
result of VA's inadvertent error. As an initial matter, we note that
the 30-, 60-, 90-, and 120-day intervals under the Schedule of Losses
were intended for general applicability under this program, unless
otherwise specified. Revisions to the
[[Page 59866]]
time periods prescribed for the tiered payments for this scheduled loss
currently allow for payments higher than intended and may also
potentially result in higher payout amounts to individuals with severe
but temporary injuries than those paid to injured servicemembers who
have permanent injuries.
VA is also obligated to manage TSGLI according to sound actuarial
principles (38 U.S.C. 1980A(e)(4) and (5)). See 70 FR 75,940. Further,
Congress has expressed its desire that the TSGLI premium remain minimal
(151 Cong. Rec. S4095 (2005) (statement of Sen. Craig)). Reducing the
first prescribed interval for the most common loss payout under the
schedule would substantially increase the benefit costs under the
program--which is funded by servicemembers' premiums--and jeopardize
the actuarial soundness of the program by placing upward pressure on
the TSGLI premium. If the premiums are no longer sufficient to cover
program costs, the only way for the program to avoid a funding loss is
to increase the premium. See 38 U.S.C. 1980A(a) and (e).
Finally, VA does not have the authority to make unilateral
revisions to regulations that govern coverage for loss due to traumatic
injury. See 38 U.S.C. 1980A(j) (requiring VA to consult with the
Secretary of Defense when promulgating regulations which govern
coverage for loss due to traumatic injury). During both the TSGLI Year-
One Review and the TSGLI Year-Ten Review, VA consulted, as required by
law, with the uniformed services as well as VA, military, and private
medical professionals on this issue. VA findings from this consultation
confirmed the 30, 60, 90, and 120-day payment intervals. Therefore, VA
has determined that it is necessary to correct this error instead of
retaining the erroneous amendment containing the currently reduced time
periods.
For the reasons explained, VA proposes to amend 38 CFR 9.21(c)(20)
to reinstate the tiered schedule for payments for an inability to
perform at least two ADLs as a result of a traumatic injury other than
a traumatic brain injury beginning at 30 consecutive days, with
additional payments at 60, 90, and 120 consecutive days.
Executive Orders 12866, 13563 and 14094
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, and other advantages;
distributive impacts; and equity). Executive Order 13563 (Improving
Regulation and Regulatory Review) emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. Executive Order 14094 (Executive Order on
Modernizing Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing contemporary
regulatory review established in Executive Orders 12866 and 13563. The
Office of Information and Regulatory Affairs has determined that this
rulemaking is not a significant regulatory action under Executive Order
12866, as amended by Executive Order 14094. The Regulatory Impact
Analysis associated with this rulemaking can be found as a supporting
document at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act (5
U.S.C. 601-612). The factual basis for this certification is because
the regulation affects only individuals and would not directly affect
any small entities. Therefore, pursuant to 5 U.S.C. 605(b), the initial
and final regulatory flexibility analysis requirements of sections 603
and 604 do not apply.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This proposed rule would have no such
effect on State, local, and tribal governments, or on the private
sector.
Paperwork Reduction Act
Although this proposed rule contains collection of information
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3521), there are no provisions associated with this rulemaking
constituting any new collection of information or any revisions to the
existing collection of information. The collection of information for
38 CFR 9.21 is currently approved by the Office of Management and
Budget (OMB) and have been assigned OMB control number 2900-0919.
Assistance Listing
The Assistance Listing number and title for the program affected by
this document is 64.103, Life Insurance for Veterans.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved and signed
this document on July 17, 2024, and authorized the undersigned to sign
and submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of
General Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, VA proposes to amend 38 CFR
part 9 as set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
0
2. Amend Sec. 9.21 by revising paragraph (c)(20)(i) through (iv) to
read as follows:
Sec. 9.21 Schedule of Losses.
* * * * *
(c) * * *
* * * * *
(20) Traumatic injury, other than traumatic brain injury, resulting
in inability to perform at least 2 activities of daily living (ADL):
(i) The amount payable at the 30th consecutive day of ADL loss is
$25,000.
(ii) The amount payable at the 60th consecutive day of ADL loss is
an additional $25,000.
(iii) The amount payable at the 90th consecutive day of ADL loss is
an additional $25,000.
(iv) The amount payable at the 120th consecutive day of ADL loss is
an additional $25,000.
* * * * *
[FR Doc. 2024-16238 Filed 7-23-24; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on July 24, 2024.
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