On July 2, 2020, the Office of Federal Contract Compliance Programs (OFCCP) published the Final Rule, “Affirmative Action and Nondiscrimination Obligations of Federal Contractors and Subcontractors: TRICARE Providers” in the Federal Register. The final rule aims to clarify the scope of OFCCP’s authority over TRICARE providers. Though the final rule did not release Veterans Affairs Health Benefits Program (VAHBP) providers from complying with OFCCP’s laws, OFCCP established a moratorium exempting VAHBP providers from enforcement of their affirmative obligations and being neutrally scheduled for compliance evaluations through May 7, 2027, pursuant to “Directive 2021-01 Revision 2, Extending the Scheduling Moratorium for Veterans Affairs Health Benefits Program (VAHBP) Providers”.
- What is TRICARE?
- Who does OFCCP consider to be TRICARE providers?
- How is the TRICARE moratorium impacted by the final rule?
- How are TRICARE providers with other federal contracts or subcontracts treated under the amended regulations?
- What is the purpose of the National Interest Exemption for TRICARE providers in the Final Rule?
- If my company has a VAHBP agreement, are we covered under the amended regulations?
- My company has contracts with the U.S. Department of Veterans Affairs to provide non-medical services. Is my company covered by the Scheduling Moratorium for VAHBP Providers?
- How does OFCCP define VAHBP Providers?
- Are health care providers like blood banks, diagnostic labs, and ambulance services under the TRICARE Exemption and/or the Scheduling Moratorium for VAHBP Providers?
What is TRICARE?
TRICARE is the health care program for uniformed service members, retirees, and their families around the world. TRICARE is managed by the Defense Health Agency under leadership of the Assistant Secretary of Defense (Health Affairs). Additional information is located at the TRICARE website.
Who does OFCCP consider to be TRICARE providers?
OFCCP classifies TRICARE providers as health care entities with agreements to furnish medical services and supplies to individuals participating in TRICARE.
How is the TRICARE moratorium impacted by the final rule?
The final rule completely removes TRICARE providers from OFCCP’s authority. Therefore, TRICARE providers are exempt from complying with Section 503 of the Rehabilitation Act of 1973, as amended (Section 503), and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended (VEVRAA). However, TRICARE providers remain subject to all other federal, state, and local laws prohibiting discrimination and providing for equal employment opportunity.
How are TRICARE providers with other federal contracts or subcontracts treated under the amended regulations?
OFCCP will retain authority over health care providers participating in TRICARE if they hold a separate covered Federal contract or subcontract that is not for providing health care services under TRICARE.
What is the purpose of the National Interest Exemption for TRICARE providers in the Final Rule?
The national interest exemption releases TRICARE providers from having to comply with laws and regulations administered by OFCCP. The exemption is in the national interest because it will improve uniformed service members’ and veterans’ access to medical care and provide greater uniformity, certainty, and notice for health care providers participating in TRICARE.
If my company has a VAHBP agreement, are we covered under the amended regulations?
OFCCP did not adopt any regulatory changes related to VAHBP agreements in the 2020 Final Rule. However, VAHBP providers are exempted from enforcement of their affirmative obligations or being neutrally scheduled for compliance evaluations that may occur through May 7, 2027, pursuant to Directive 2021-01 Revision 2, Extending the Scheduling Moratorium for Veterans Affairs Health Benefits Program (VAHBP) Providers.
My company has contracts with the U.S. Department of Veterans Affairs to provide non-medical services. Is my company covered by the Scheduling Moratorium for VAHBP Providers?
No. The Scheduling Moratorium for VAHBP Providers only applies to providers of health care and does not extend to contractors that hold a separate, independent contract that is unrelated to health care.
How does OFCCP define VAHBP Providers?
OFCCP uses “VAHBP providers” as an umbrella term to encompass health care providers that contract with the U.S. Department of Veterans Affairs, including those in Veterans Affairs Community Care Networks, as well as Veterans Care Agreements created pursuant to the 2018 VA MISSION Act.
Are health care providers like blood banks, diagnostic labs, and ambulance services under the TRICARE Exemption and/or the Scheduling Moratorium for VAHBP Providers?
The term "health care providers," as used in the TRICARE Exemption and VAHBP Moratorium, is interpreted to include providers like blood banks, diagnostic labs, or ambulance services. As such, these entities may qualify for these two exceptions to OFCCP coverage for specific types of health care providers. To be eligible for the TRICARE Exemption, the entity must hold a TRICARE subcontract (rather than a prime contract) and hold no other covered agreements. To be eligible for the VAHBP Moratorium, the entity must hold an agreement (prime or subcontract) to provide services or supplies to VAHBP beneficiaries and hold no other covered agreements.
A TRICARE provider that holds another covered contract, such as a prime contract or a subcontract apart from the TRICARE provider contract, would still need to comply with OFCCP’s requirements. Like the TRICARE Exemption, a health care provider providing services to beneficiaries of a VAHBP that also holds another covered contract outside the scope of VAHBP would still need to comply with all of OFCCP’s requirements. Further, the VAHBP Moratorium is not a complete exclusion from OFCCP’s authority, as it only relieves an entity from enforcement of its affirmative obligations and being neutrally scheduled for a compliance evaluation.
The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.
Last updated on June 12, 2025