OFCCP Extends TRICARE Moratorium
Client Alert | 1 min read | 05.23.18
The Office of Federal Contract Compliance Programs (OFCCP) has extended its enforcement moratorium against health care providers who provide services pursuant to the TRICARE program. The five-year moratorium, instituted in 2014, has now been extended another two years until May 7, 2021. The OFCCP also expanded the moratorium to encompass Veterans Affairs Health Benefits Program (VAHBP) providers as well. The OFCCP instituted the initial moratorium after a lengthy battle with several TRICARE providers over the question of whether their provision of services established them as government subcontractors subject to the OFCCP’s jurisdiction. The Trump Administration’s Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions recently identified TRICARE provider obligations as the OFCCP’s key regulatory focus, with a Notice of Proposed Rulemaking expected by Spring 2019. The OFCCP has now announced an extension of the moratorium to allow the OFCCP “time to receive feedback from stakeholders, relieve uncertainty, and give OFCCP an opportunity to evaluate and address legislation that may be enacted on this issue.”
It is important to note that the moratorium extends only to providers whose sole source of government funding is through TRICARE and/or VAHBP. Health care providers who are otherwise government subcontractors remain subject to OFCCP compliance reviews. Further, while the moratorium extension is good news for TRICARE and VAHBP providers, the long-term uncertainty regarding their subcontractor status remains until the OFCCP or Congress takes further, definitive, actions.
Contacts
Insights
Client Alert | 4 min read | 03.25.26
NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know
The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states.
Client Alert | 11 min read | 03.25.26
White House National AI Policy Framework Calls for Preempting State Laws, Protecting Children
Client Alert | 3 min read | 03.24.26
California Considering A Massive Expansion of Its Antitrust Laws
Client Alert | 2 min read | 03.23.26


