H.R. 9869 — FECA Modernization and Cost Containment Act of 2026

This section states congressional findings that the Federal Employees’ Compensation Act has not undergone significant reform since 1974, that federal workers’ compensation costs exceed private-sector levels, and that the inability to direct injured employees to managed care networks increases medical costs and extends recovery times. It further finds that fraud remains a significant issue and that industry best practices such as employer-directed care and standardized protocols would reduce costs and improve outcomes.

This section requires federal employees injured in the performance of duty to receive medical services, appliances, and supplies through a managed care network contracted by their employing agency, except in medical emergencies. It directs each agency to contract with such a network meeting standards for geographic access, fee limits, second opinions, dispute resolution, standardized treatment protocols, annual reporting, and performance evaluations; establishes a 16-member review board to monitor compliance and suggest improvements; and authorizes the Secretary of Labor to use predictive analytics for fraud detection. The changes take effect 1 year after enactment.

This section directs the Secretary of Labor to issue regulations within 6 months after enactment to implement the Act. It requires the head of each federal agency to submit to the Secretary, within 1 year after enactment, a plan for transitioning to managed care networks under the amendments to section 8103 of title 5, United States Code.

This section requires the Comptroller General to submit a report to Congress no later than 6 months after the end of the 5-year period beginning 1 year after enactment. The report must assess the effects of the amendments made by section 3 to 5 U.S.C. 8103 on costs, fraud reduction, and administrative efficiency.