Legal Alert - OFCCP Rescinds Directive 293 Regarding Jurisdiction Over Health Care Providers and Insurers
OFCCP Rescinds Directive 293 Regarding Jurisdiction Over Health Care Providers and Insurers
by Kathryn Hackett King and John F. Lomax, Jr.
The United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has rescinded Directive 293, Coverage of Health Care Providers and Insurers, which outlined OFCCP policy for determining whether OFCCP has jurisdiction over health care providers and insurers based on their relationship with federal health care programs.
On April 25, 2012, the OFCCP announced that it was rescinding Directive 293, effective immediately, in light of questions raised with respect to the OFCCP’s jurisdiction over health care providers: “[R]ecent legislation and related developments in pending litigation warrant rescission of Directive 293 at this time.” Those recent developments include: (1) the pending appeal of OFCCP v. Florida Hosp. of Orlando, ALJ Case No. 2009-OFC-00002 (October 18, 2010) (concluding that hospital was covered subcontractor where it had a contract with Humana to provide health care services to TRICARE beneficiaries); (2) the passage of the National Defense Authorization Act (NDAA) of 2012 (exempting from OFCCP jurisdiction medical providers who participate in the Department of Defense TRICARE program, the health care program for active and retired military personnel); and (3) the pending appeal of OFCCP v. UPMC Braddock, ARB Case No. 08-048 (May 29, 2009) (concluding that hospital was covered subcontractor, where it had a Health Maintenance Organization (HMO) contract to provide medical products and services to federal government employees).