Title 10Armed ForcesRelease 119-73

§1103 Contracts for medical and dental care: State and local preemption

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART II— - PERSONNEL › Chapter CHAPTER 55— - MEDICAL AND DENTAL CARE › § 1103

Last updated Apr 6, 2026|Official source

Summary

State or local rules about health insurance, prepaid plans, or how health care is paid for do not apply to contracts the Secretary of Defense or the military Secretaries make under this chapter when those officials find the rule conflicts with the contract or their regulations, or when blocking the rule is needed to run the contract or protect an important federal interest. If a State or local financial-solvency rule is overridden, the Secretary of Defense or the military Secretaries must order an independent audit of the prime contractor. The Defense Contract Audit Agency must do the audit. “State” here includes the District of Columbia, Puerto Rico, the Northern Mariana Islands, and U.S. possessions.

Full Legal Text

Title 10, §1103

Armed Forces — Source: USLM XML via OLRC

(a)A law or regulation of a State or local government relating to health insurance, prepaid health plans, or other health care delivery or financing methods shall not apply to any contract entered into pursuant to this chapter by the Secretary of Defense or the administering Secretaries to the extent that the Secretary of Defense or the administering Secretaries determine that—
(1)the State or local law or regulation is inconsistent with a specific provision of the contract or a regulation promulgated by the Secretary of Defense or the administering Secretaries pursuant to this chapter; or
(2)the preemption of the State or local law or regulation is necessary to implement or administer the provisions of the contract or to achieve any other important Federal interest.
(b)In the case of the preemption under subsection (a) of a State or local law or regulation regarding financial solvency, the Secretary of Defense or the administering Secretaries shall require an independent audit of the prime contractor of each contract that is entered into pursuant to this chapter and covered by the preemption. The audit shall be performed by the Defense Contract Audit Agency.
(c)In this section, the term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and each possession of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (c). Pub. L. 109–163 struck out “Territory and” before “possession”. 1993—Pub. L. 103–160 amended section generally. Prior to amendment, section read as follows: “(a) The provisions of any contract under this chapter which relate to the nature and extent of coverage of benefits (including payments with respect to benefits) shall preempt any law of a State or local government, or any regulation issued under such a law, which relates to health insurance or plans to the extent that such law or regulation is inconsistent with such contractual provisions. “(b) In this section, the term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and each territory and possession of the United States.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1993 Amendment Pub. L. 103–160, div. A, title VII, § 715(b), Nov. 30, 1993, 107 Stat. 1691, provided that: “Section 1103 of title 10, United States Code, as amended by subsection (a), shall apply with respect to any contract entered into under chapter 55 of such title before, on, or after the date of the enactment of this Act [Nov. 30, 1993].”

Effective Date

Pub. L. 100–180, div. A, title VII, § 725(b), Dec. 4, 1987, 101 Stat. 1117, provided that: “section 1103 of such title, as added by subsection (a), shall apply with respect to any contract entered into after
October 1, 1987.” Applicability of Preemption Provisions to Certain Contracts Pub. L. 102–396, title IX, § 9032, Oct. 6, 1992, 106 Stat. 1908, as amended by Pub. L. 103–50, ch. III, § 301,
July 2, 1993, 107 Stat. 250, provided in part “That the preemption provisions of section 1103(a) of title 10, United States Code, shall not be limited to contractual provisions relating to coverage of benefits, but shall apply to all contracts entered into pursuant to this general provision, the California and Hawaii recompetition contract, and Solicitation Number MDA 906–92–R–0004 and shall preempt any and all State and local laws and

Regulations

which relate to health insurance or health care plans”. Applicability to Contracts Entered Into Pursuant to Solicitation Number MDA–903–87–R–0047 Pub. L. 100–463, title VIII, § 8078(b), Oct. 1, 1988, 102 Stat. 2270–30, provided that preemption provisions of 10 U.S.C. 1103 shall apply to contracts entered into pursuant to Solicitation Number MDA–903–87–R–0047 and shall preempt State and local laws or

Regulations

which relate to health insurance or prepaid health care plans. Similar provisions were contained in the following prior appropriation act: Pub. L. 100–202, § 101(b) [title VIII, § 8104(b)], Dec. 22, 1987, 101 Stat. 1329–43, 1329–81.

Reference

Citations & Metadata

Citation

10 U.S.C. § 1103

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73