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1.      What is an offshore subcontractor?

Answer:  CMS considers MA organizations and PDP sponsors to be “contractors” with respect to CMS for the purposes of delivering Medicare Part C and Part D benefits. The term “subcontractor” refers to any organization that a sponsor contracts with to fulfill or help fulfill requirements in their Part C and/or Part D contracts. Subcontractors include all FDRs.

The term “offshore” refers to any country that is not one of the fifty United States or one of the United States Territories (American Samoa, Guam, Northern Marianas, Puerto Rico, and Virgin Islands).  Examples of countries that meet the definition of “offshore” include Mexico, Canada, India, Germany, and Japan. Subcontractors that are considered offshore can be either American-owned companies with certain portions of their operations performed outside of the United States or foreign-owned companies with their operations performed outside of the United States. Offshore subcontractors provide services performed by workers located in offshore countries, regardless of whether the workers are employees of American or foreign companies.