TRICARE

On July 2, 2020, the Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) promulgated a final rule resolving long-standing uncertainty regarding its enforcement authority over health care providers participating in TRICARE, a federal program that provides health care to service members, veterans, and their families.[1] The rule officially removes OFCCP’s regulatory authority over TRICARE providers by amending the definition of “subcontract” set forth in the governing Department of Labor regulations.  Although the amendment carves out TRICARE providers from OFCCP authority by name and leaves the rest of the “subcontractor” definition unchanged, OFCCP expressly raised the possibility that it would issue additional sub-regulatory guidance concerning its jurisdiction over Federal Employees Health Benefit Program (“FEHBP”) and Veterans Administration Health Benefit Program (“VAHBP”) providers.
Continue Reading OFCCP Promulgates Final Rule Eliminating Its Authority Over TRICARE Providers

Those of us who write about the Affordable Care Act seldom have the chance to use the phrase “overwhelming bipartisan support.”  The Hire More Heroes Act of 2015 provides a welcome opportunity to do so.  The Act, designed to encourage small businesses to hire veterans, has received bipartisan and bicameral support in Congress.  If it becomes law – a prospect that looks increasingly likely – it will complement the administration’s recent push to encourage government contractors to employ more veterans.  Although the Hire More Heroes Act would offer valuable benefits to businesses, this post flags a few unpleasant surprises that could arise in its implementation.  
Continue Reading An Apple a Day (From the VA) Keeps the Tax Man Away

In a move that signals the start of the acquisition cycle for the DOD’s largest purchased care contract, the Defense Health Agency (“DHA”) has released a draft RFP for the next generation of TRICARE Managed Care Support (“MCS”) contracts.  The TRICARE program, which provides health care services to nearly 10 million servicemembers and their families across the country, relies on private contractors to develop and maintain health care provider networks.  Given both the size of these contracts — the current third-generation MCS contracts are worth more than $53 billion — and their strategic importance to the DOD in delivering health care to millions of servicemembers, the TRICARE MCS procurement will be closely watched by both government and industry stakeholders alike.  And although elements of the program outlined in the draft RFP will be familiar to past participants in the MCS program, the next generation of MCS contracts also features several new characteristics that could significantly impact the contract award and performance.
Continue Reading Changes Ahead for TRICARE Managed Care Support Program?