HouseH.R. 9869119th Congress
FECA Modernization and Cost Containment Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9869 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9869
To amend chapter 81 of title 5, United States Code, to improve outcomes
for injured Federal workers and reduce costs and fraud, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 22, 2026
Mr. Patronis (for himself and Mr. Bean of Florida) introduced the
following bill; which was referred to the Committee on Education and
Workforce
_______________________________________________________________________
A BILL
To amend chapter 81 of title 5, United States Code, to improve outcomes
for injured Federal workers and reduce costs and fraud, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``FECA Modernization and Cost
Containment Act of 2026''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Federal Employees' Compensation Act has not
undergone significant reform since 1974, despite advancements
in workers' compensation practices.
(2) Federal employees' compensation costs are significantly
higher than those in the private sector, creating a burden on
taxpayers.
(3) The inability of Federal employers to direct injured
employees to managed care networks results in increased medical
costs, inconsistent treatment, poor clinical outcomes and
extended recovery times.
(4) Fraud in the Federal employees' compensation system
remains a significant issue, requiring enhanced monitoring and
predictive fraud detection measures.
(5) Implementing industry best practices, including
employer-directed medical care, standardized treatment
protocols, and case management programs, will improve
efficiency, reduce costs, improve clinical outcomes for injured
employees, and accelerate employee recovery.
SEC. 3. FECA MODERNIZATION.
(a) Requirement To Seek Care Through Managed Care Network.--Section
8103(a) of title 5, United States Code, is amended--
(1) by amending paragraph (3) to read as follows:
``(3) except in the case of a medical emergency, through
the managed care network that contracts with the employing
agency of the employee pursuant to subsection (c)(1).''; and
(2) in the matter following paragraph (3), by striking
``The employee'' and inserting ``Subject to subsection (c), the
employee''.
(b) Managed Care Networks.--Section 8103 of title 5, United States
Code, is amended by adding at the end the following:
``(c) Managed Care Networks.--
``(1) In general.--To meet the requirements of subsection
(a), the head of each employing agency shall enter into a
contract with a managed care network to furnish services,
appliances, and supplies to employees of such agency.
``(2) Employee.--
``(A) Out-of-network services.--In a case in which
the MCN with which the employing agency has a contract
is unable to furnish prescribed or recommended
services, appliances, or supplies to an employee, the
employee may select a provider for such services,
appliances, and supplies in accordance with the matter
at the end of subsection (a) that follows paragraph (3)
of such subsection.
``(B) Second opinion.--In a case in which the MCN
with which the employing agency has a contract
furnishes a provider to an employee and such employee
disputes a diagnosis or treatment recommendation
received from such provider, the MCN shall furnish the
employee a second opinion from a different provider.
``(C) Dispute resolution.--The Secretary of Labor
shall establish a system for review of disputes to
ensure employees are furnished services, appliances,
and supplies in a timely manner.
``(3) Requirements.--To be eligible to enter into and
maintain a contract under paragraph (1), an MCN shall meet the
following requirements:
``(A) Services.--The MCN shall make reasonable
attempts to provide the services, appliances, and
supplies required to be furnished to an employee under
subsection (a).
``(B) Practices.--The MCN shall comply with the
standardized treatment protocols established pursuant
to paragraph (4).
``(C) Limitation on fees.--The MCN may not charge a
fee for a service, appliance, or supply in excess of
the fee established under the fee schedule (or a
successor document) published by the Office of Workers
Compensation Programs of the Department of Labor for
such service, appliance, or supply.
``(D) Geographic accessibility.--The MCN shall
maintain a sufficient number of providers within
reasonable proximity to each work site of the employing
agency.
``(E) Evaluations.--The MCN shall, using a provider
assessment system--
``(i) regularly evaluate each provider
providing services to an employing agency
through the MCN for performance and cost-
effectiveness; and
``(ii) if appropriate, remove a provider
from the MCN or exclude the provider from
providing services through the MCN to the
employing agency.
``(F) Annual reports.--The MCN shall, on an annual
basis, submit to the head of the employing agency a
report containing information in relation to the
preceding calendar year, including information on the
following:
``(i) Cost savings, as compared to
estimated costs the agency would pay if the
agency did not have a contract with the MCN.
``(ii) An assessment of the performance of
each provider furnished through the MCN.
``(iii) Anonymized data on outcomes of
employees who were treated by a provider
furnished through the MCN.
``(G) Information for reviews.--The MCN shall
provide the review board established pursuant to
paragraph (5) such information as the board determines
necessary to carry out the duties of the board under
such paragraph, including, if requested, information
needed for the board to carry out subparagraph (D) of
such paragraph.
``(4) Treatment protocols.--The Secretary of Labor shall
establish standardized treatment protocols for employees based
on the best practices of the healthcare industry.
``(5) Review board.--
``(A) In general.--Not later than 270 days after
the effective date under section 3(c) of the FECA
Modernization and Cost Containment Act of 2026, the
Secretary of Labor shall establish a review board.
``(B) Membership.--The board established pursuant
to subparagraph (A) shall be selected by the Secretary
of Labor and shall be composed of 16 members as
follows:
``(i) 2 representatives of the Secretary of
Labor who are from the Office of Workers
Compensation Programs.
``(ii) 1 representative of the Secretary of
Labor who is not from such Office.
``(iii) 1 representative of the head of
another agency.
``(iv) 2 representatives of employees.
``(v) 2 representatives from MCNs who have
contracted with Federal agencies.
``(vi) 5 representatives of providers who
have contracted with MCNs described in clause
(v).
``(C) Duties.--The duties of the Board shall be
to--
``(i) monitor--
``(I) MCNs to ensure compliance
with standardized treatment protocols
established pursuant to paragraph (4);
``(II) rate negotiations; and
``(III) the performance of
providers furnished through MCNs; and
``(ii) suggest improvements to the
Secretary.
``(D) Optional review of geographic
accessibility.--The Board may ensure MCNs comply with
paragraph (3)(E).
``(6) Fraud prevention.--The Secretary of Labor may
contract with entities to monitor claims and flag potentially
fraudulent claims for further review using predictive analytics
tools (which may include the use of artificial intelligence (as
defined in section 9401(3) of title 15, United States Code))
to, based on historical claim patterns and medical
inconsistencies, identify potentially fraudulent claims.
``(d) Managed Care Network; MCN Defined.--In this section, the
terms `managed care network' and `MCN' mean a network of providers that
furnishes services, appliances, and supplies prescribed or recommended
by a qualified physician as described under subsection (a).''.
(c) Effective Date.--The amendments made by this section shall take
effect 1 year after the date of enactment of this Act.
SEC. 4. REGULATORY AUTHORITY.
(a) In General.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Labor shall issue such
regulations as are necessary to carry out the purposes of this Act.
(b) Transition Plan.--Not later than 1 year after the date of
enactment of this Act, the head of each Federal agency shall submit to
the Secretary a plan describing how the agency will transition to the
use of managed care networks pursuant to the amendments made by section
3 of this Act to section 8103 of title 5, United States Code.
SEC. 5. GAO REVIEW.
Not later than 6 months after the end of the 5-year period
beginning on the date that is 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit a
report to Congress on the effect, during such 5-year period, of the
amendments made by section 3 of this Act to section 8103 of title 5,
United States Code, including the effect, in relation to administration
of such section, on--
(1) costs;
(2) fraud reduction; and
(3) administrative efficiency.
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