OFCCP Affirmative Action Directive Gives New Guidance for Healthcare Providers and Insurers

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The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) recently issued a policy directive to "provide comprehensive guidance for assessing when health care providers and insurers are federal contractors or subcontractors based on their relationship with" or participation in a federal healthcare program. The OFCCP's directive supersedes two earlier directives addressing similar issues.1

The OFCCP's directive is a significant development for healthcare providers—including entities providing medical services and supplies—because it clarifies recent confusion over the question of whether healthcare providers and insurers can be government contractors and subcontractors with the attendant affirmative action obligations. It also sheds light on the consequences of involvement in programs, such as Medicare, TRICARE and the Federal Employees Health Benefits Program (FEHBP).

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