Tuesday, February 4, 2014

Further Information Regarding Minimum Wage Increase for New Federal Contract Workers

Dana Halvorson

As noted in Capitol Connections last week, the White House released some details of an executive action that would raise the minimum wage from $7.25 to $10.10 for new federal contract workers by 2015. It is estimated that this executive action could impact roughly 250,000 people, a relatively small number of the workforce. It is important to note that this executive action does not impact Medicare or Medicaid providers, as it is a long-standing policy that they are not “federal contractors.” However, if you have VA patients, you are considered to be a federal contractor, and thus, this executive action may apply to your circumstances. That being said, AHCA continues its support for the VA’s proposed rule on Provider Agreements, which, among other things, increases the opportunity for veterans to obtain non-VA extended care serves from local providers that furnish vital and often life-sustaining medical services. AHCA is currently awaiting the final rule. The White House fact sheet on the announcement has further details regarding the minimum wage increase.

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