OFCCP Releases Directive Regarding TRICARE Subcontractor Enforcement

By | May 7, 2014

On May 7, 2014, the Office of Federal Contract Compliance Programs (OFCCP) announced a new Directive establishing a five-year moratorium on compliance reviews of TRICARE employers. During this time, the OFCCP will provide outreach and technical assistance to TRICARE subcontractors. Any compliance reviews currently in progress will be administratively closed within 30 business days. The directive can be found at: http://www.dol.gov/ofccp/regs/compliance/directives/dir2014_01.htm.

The Directive states that the OFCCP will limit its enforcements activities while engaging in extensive outreach and technical assistance to inform TRICARE participants of their responsibilities under OFCCP’s programs. During this time, the OFCCP will work with other federal agencies in order to clarify the principles governing coverage of health-care providers under federal statues applicable to contractors and subcontractors. It should also be noted that the Directive specifically states that it applies to TRICARE subcontractors. Healthcare providers may still fall under OFCCP jurisdiction due to other contracts such as the treatment of federal inmates, HMO’s and other networks participating in Federal Employees Health Benefits Program, and contracts with the Veterans Department.

This Directive comes following a letter by Department of Labor (DOL) Secretary, Tom Perez, promising a five-year moratorium by the OFCCP on enforcement of healthcare providers who are only federal subcontractors based on their receipt of TRICARE funds. Several days later, the OFCCP withdrew its complaint against Florida Hospital of Orlando. This Directive indicates that the OFCCP is not giving up their position regarding authority and will continue to pursue jurisdiction over TRICARE employers after the five-year moratorium has concluded.

Please contact us by calling (732) 446-2529 or sending us an e-mail at glennbarlett@gbcs.net if you are interested in discussing the Directive.