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FECA Modernization and Cost Containment Act of 2026

USA119th CongressHR-9869| House 
| Updated: 7/22/2026
Jimmy Patronis

Jimmy Patronis

Republican Representative

Florida

Cosponsors (1)
Aaron Bean (Republican)

Education and Workforce Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This bill seeks to modernize the Federal Employees' Compensation Act (FECA), which has not seen significant reform since 1974, to address high federal compensation costs and improve care for injured workers. It mandates that each federal employing agency enter into contracts with managed care networks (MCNs) to provide medical services, appliances, and supplies to their injured employees. Employees will generally be required to seek care through these MCNs, though provisions exist for out-of-network services if the MCN cannot furnish them, and for second opinions in case of dispute. MCNs must adhere to specific requirements, including making reasonable attempts to provide necessary services, complying with standardized treatment protocols established by the Secretary of Labor, and limiting fees to established schedules. They must also maintain geographic accessibility for providers and regularly evaluate provider performance and cost-effectiveness. The bill establishes a review board to monitor MCN compliance, rate negotiations, and provider performance, and to suggest improvements to the Secretary of Labor. To combat fraud, the Secretary of Labor is authorized to contract with entities using predictive analytics tools , including artificial intelligence, to identify potentially fraudulent claims based on historical patterns and medical inconsistencies. The legislation aims to improve efficiency, reduce costs, enhance clinical outcomes, and accelerate recovery for injured federal employees by implementing these industry best practices. The amendments will take effect one year after enactment, with a Government Accountability Office (GAO) review mandated after five years to assess the impact on costs, fraud, and administrative efficiency.
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Timeline
Jul 22, 2026
Introduced in House
Jul 22, 2026
Referred to the House Committee on Education and Workforce.
  • July 22, 2026
    Introduced in House


  • July 22, 2026
    Referred to the House Committee on Education and Workforce.

Government Operations and Politics

FECA Modernization and Cost Containment Act of 2026

USA119th CongressHR-9869| House 
| Updated: 7/22/2026
This bill seeks to modernize the Federal Employees' Compensation Act (FECA), which has not seen significant reform since 1974, to address high federal compensation costs and improve care for injured workers. It mandates that each federal employing agency enter into contracts with managed care networks (MCNs) to provide medical services, appliances, and supplies to their injured employees. Employees will generally be required to seek care through these MCNs, though provisions exist for out-of-network services if the MCN cannot furnish them, and for second opinions in case of dispute. MCNs must adhere to specific requirements, including making reasonable attempts to provide necessary services, complying with standardized treatment protocols established by the Secretary of Labor, and limiting fees to established schedules. They must also maintain geographic accessibility for providers and regularly evaluate provider performance and cost-effectiveness. The bill establishes a review board to monitor MCN compliance, rate negotiations, and provider performance, and to suggest improvements to the Secretary of Labor. To combat fraud, the Secretary of Labor is authorized to contract with entities using predictive analytics tools , including artificial intelligence, to identify potentially fraudulent claims based on historical patterns and medical inconsistencies. The legislation aims to improve efficiency, reduce costs, enhance clinical outcomes, and accelerate recovery for injured federal employees by implementing these industry best practices. The amendments will take effect one year after enactment, with a Government Accountability Office (GAO) review mandated after five years to assess the impact on costs, fraud, and administrative efficiency.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jul 22, 2026
Introduced in House
Jul 22, 2026
Referred to the House Committee on Education and Workforce.
  • July 22, 2026
    Introduced in House


  • July 22, 2026
    Referred to the House Committee on Education and Workforce.
Jimmy Patronis

Jimmy Patronis

Republican Representative

Florida

Cosponsors (1)
Aaron Bean (Republican)

Education and Workforce Committee

Government Operations and Politics

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted