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3.  Medicare-TRICARE/CHAMPVA Relationship

                   If a TRICARE/CHAMPVA beneficiary also has Medicare coverage, TRICARE/
                   CHAMPVA reduces its liability in all cases by the amount payable by Medicare, i.e.,
                   Medicare is the primary payer and TRICARE/CHAMPVA supplements Medicare by
                   paying the Medicare deductible and coinsurance amounts and portions of the bill not
                   covered by Medicare.  Thus, dually entitled individuals may be reimbursed up to 100
                   percent of expenses for items and services covered by both programs.

                   TRICARE/CHAMPVA has established policies and procedures which provide for (a) the
                   identification of claimants who have coverage under both TRICARE/CHAMPVA and
                   Medicare and (b) the detection of duplicate payments under both programs. If
                   TRICARE/CHAMPVA inadvertently pays amounts which duplicate Medicare payments
                   for the same items or services, TRICARE/CHAMPVA will take steps to recover the
                   incorrect TRICARE/CHAMPVA payments.

                   50.5 - Active Duty Members of Uniformed Services
                   (Rev. 1, 10-01-03)
                   A3-3153.3.E, HO-260.3.G

                   In limited circumstances, active duty members of the Uniformed Services may have care
                   in civilian facilities paid for by the Army, Navy, Air Force, Marine Corps, or other
                   appropriate uniformed service.  Except for emergency services, prior approval is
                   generally required before such payment can be made.  Services furnished pursuant to
                   such approval and services paid for or expected to be paid for by the Uniformed Services
                   are not reimbursable under Medicare.

                   60 - Services Not Provided Within United States
                   (Rev. 102; Issued:  02-13-09; Effective/Implementation Date:  03-13-09)

                   Items and services furnished outside the United States are excluded from coverage except
                   for the following services, and certain services rendered on board a ship:

                       •  Emergency inpatient hospital services where the emergency occurred:

                          o  While the beneficiary was physically present in the United States; or

                          o  In Canada while the beneficiary was traveling without reasonable delay and
                              by the most direct route between Alaska and another State.  See Pub. 100-04,
                              Medicare Claims Processing Manual Chapter 3, Inpatient Hospital Billing,
                              Section 110 for a description of claims processing procedures.

                       •  Emergency or nonemergency inpatient hospital services furnished by a hospital
                          located outside the United States, if the hospital was closer to, or substantially
                          more accessible from, the beneficiary’s United States residence than the nearest
                          participating United States hospital which was adequately equipped to deal with
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