Minimum Wage Initiative Tied to Services Provided to VA Patients

On Tuesday, President Obama issued an executive action regarding the minimum wage increase for new federal contract workers.  In advance of this week’s State of the Union address, the White House released some details about the executive action that would raise the minimum wage from $7.25 to $10.10 for new federal contract workers by 2015.  It is important to note that this executive action does not impact Medicare or Medicaid providers, as it is a long-standing policy that such providers are not "federal contractors."  It is also important to note that if long term care facilities serve VA patients, those facilities are considered to be federal contractors, and thus, this executive action may apply.

Meanwhile, the American Health Care Association (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 services from local providers that furnish vital and often life-sustaining medical services.  AHCA is currently awaiting the final rule.

We will pass along additional information as it becomes available.