Putting Patients First by Strengthening Provider Accountability in FECA Act

Bill Summary: Putting Patients First by Strengthening Provider Accountability in FECA Act (H.R. 8823)

Purpose and intent

H.R. 8823 aims to strengthen accountability for medical providers who bill under the Federal Employees' Compensation Act (FECA) by authorizing federal payment suspensions for providers convicted of fraud. The overarching goal is to protect FECA trust funds and patients by ensuring that fraudulent activity by providers can lead to immediate financial consequences.

Key provisions and changes

• Amendments to FECA-related provisions (5 U.S.C. § 8103):
  • Introduces a new subsection (c) giving the Secretary of Labor authority to suspend payments to providers of services, appliances, or supplies, or to suspend related vouchers or certifications, for expenses incurred by employing agencies.
  • Grounds for suspension: The provider must have been convicted of fraud related to:
  • FECA benefits (subchapter in FECA),
  • any Federal health care benefit program (as defined in 18 U.S.C. § 24),
  • or any State program that makes payments to providers for similar services, appliances, or supplies.
  • The Secretary is required to promulgate regulations to implement this authority.
• Effective date:
  • The new suspension authority applies to payments made on or after a date that is 180 days after enactment.

Who/what is affected

• Affected entities include:
  • Providers of FECA services, including medical providers, suppliers, and those furnishing appliances or equipment under FECA.
  • Federal and state-funded health care programs that involve fraud-related convictions may intersect with direct FECA payments.
  • The Department of Labor, specifically the Office responsible for FECA, which would implement the regulatory framework and oversee suspensions.
• Potentially affected parties also include employing agencies that incur FECA-related expenses and may see delayed or suspended reimbursements for convicted providers.

Procedural and timeline aspects

• Enactment and regulatory process:
  • The Secretary of Labor must promulgate regulations implementing the new suspension authority.
• Phase-in period:
  • There is a 180-day delay after enactment before the amendments’ suspension authority becomes effective, providing time to develop guidance and regulations and to communicate the change to stakeholders.
• Legislative status:
  • Introduced May 14, 2026, and referred to the House Committee on Education and Workforce. Co-sponsorship by Rep. Ryan Mackenzie.

Potential impact

• Financial impact protection: By suspending payments to fraud-convicted providers, FECA funds may be better safeguarded from disbursing reimbursements to fraudulent actors.
• Deterrence: The prospect of payment suspensions tied to fraud convictions may deter provider fraud in FECA-related workplaces.
• Implementation considerations: Effective use will depend on robust coordination between the Department of Labor, FECA program administrators, and state/federal health programs to determine eligibility for suspension and ensure due process through regulations.