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OFCCP suspends enforcement activities for TRICARE subcontractors

May 8, 2014

The Department of Labor’s Office of Federal Contract Compliance Programs yesterday announced a five-year moratorium on its enforcement activities for TRICARE subcontractors, citing “confusion regarding who is covered and what obligations the TRICARE subcontractor community has under the laws enforced by OFCCP.” During the moratorium, effective immediately, the office will “engage in outreach and technical assistance to provide greater clarity for the TRICARE subcontractor community about their obligations under the laws administered by OFCCP,” the directive states. “In addition, the agency will work with other federal agencies to clarify the coverage of health care providers under federal statutes applicable to subcontractors.” While the National Defense Authorization Act for fiscal year 2012 explicitly exempted TRICARE network providers from federal contractor status, AHA recently told a congressional committee that the OFCCP’s “persistent attempts to circumvent the NDAA confirm the need for legislation that places clear limits on the agency’s jurisdiction.” AHA has urged Congress to pass the Protecting Health Care Providers from Increased Administrative Burdens Act (H.R. 3633), legislation that would prevent OFCCP from expanding the reach of its regulatory oversight to hospitals and other health care organizations that provide care for uniformed service members and other federal employees.