▶ 0:06:13on workforce protection will come to order. I note that a quorum is present and without objection, the chair is authorized to call a recess at any time. Today's hearing is about examining the Federal Employees Compensation Act, known as FECA, a more than century-old law to consider how it might be improved to benefit injured federal workers while also protecting taxpayers from waste, fraud, and abuse.
▶ 0:06:41Enacted in 1916, FECA provides workers' compensation benefits to approximately 2.6 million civilian federal employees, employees of entities wholly owned by the United States, including the US Postal Service, and volunteers with Volunteers in Service to America and the Peace Corps.
▶ 0:07:01The FECA program is administered and adjudicated by the Department of Labor's Office of Workers' Compensation Through this program, DOL provides benefits to individuals who sustain an injury or illness in the performance of duty anywhere in the world.
▶ 0:07:17Such benefits include wage replacement, reasonable and necessary medical treatment related to the injury, vocational rehabilitation and job placement assistance for disabled workers, compensation for the permanent impairment of limbs and use of body systems, and compensation for survivors of employees due to a work-related In fiscal year 2024, there were more than 86,000 new FECA cases.
▶ 0:07:43From July 1st, 2023 to June 30th, 2024, the program provided more than $2.9 billion in benefits to more than 178,000 workers and survivors for work-related injuries or illnesses.
▶ 0:07:58Of these benefit payments, approximately $2 billion was for wage loss compensation, $843 million for medical and rehabilitation services, and $143 million for death benefits payments to surviving However, FECA is widely considered to be in need of updating with the last meaningful changes made more than 50 years ago.
▶ 0:08:23Critics of the existing program have argued that it is susceptible to waste, fraud, and abuse, and that it can be, at times, overly generous, as many beneficiaries remain on the program well into retirement. The need for reforming FECA has long been recognized by presidential administrations from both parties. In the Clinton administration, George W.
▶ 0:08:45Bush administration, Obama administration, and the first Trump administration, all making reform While these administrations have differed on many matters, they agree on many reforms to benefit FECA recipients.
▶ 0:08:59Such reforms include making the wage loss compensation level uniform for all beneficiaries, permitting physician assistants and nurse practitioners to approve claims for FECA benefits, and allowing DOL to communicate with the Social Security Administration to review claimants' employment and wage Federal workers and taxpayers deserve a more efficient and effective program.
▶ 0:09:25Working together in a bipartisan fashion, we can create comprehensive changes to ensure the FECA program is meeting the needs of workers and Creating a program that prevents abuse by bad actors, reflects the realities of the 21st century, and provides adequate support to workers. And that is the end I look forward to hearing from today's witnesses about their perspectives on FECA and discussing their recommendations about reforming this important program.
▶ 0:09:55With that, I yield to my ranking member for an opening Thank you, Mr. Chairman. Uh good morning, everyone. Thank you to our witnesses for being here today. Um FECA is more FECA is more than just a statute. It is a solemn promise. A promise that if a federal worker is injured on the job, we as government will make them whole.
▶ 0:10:22It is a commitment not only to those who wear a uniform or work on the front lines, but to every civilian federal employee from postal workers to TSA agents, to those inspecting our food supply and maintaining public safety. These individuals do their job with dedication, and we must ensure they are protected when they are injured doing that work. Unfortunately, in a broader landscape of workers' compensation, we have seen a troubling trend.
▶ 0:10:52Years of regressive changes in many states have weakened employee compensation systems, leaving too many workers behind in their moment of greatest need. FECA stands in as one of the last stronghold of workers first compensation model, and we have a responsibility to preserve and strengthen it, not dismantle it in the name of cost saving or efficiency.
▶ 0:11:19Historically, this committee has shown that FECA reform does not have to be partisan. In fact, some of the most significant improvements have been made through bipartisan cooperation. We have demonstrated that when we put politics aside and focus on the mission of supporting federal workers, we can deliver meaningful change. That legacy is worth continuing. We don't need to reinvent the wheel. We We can but we can modernize the vehicle.
▶ 0:11:48That means updating outdated procedures, improving access to care, and ensuring injured workers don't fall through the cracks during the claim process. With bipartisan work already underway including the improving access to workers compensation for injured federal workers from Chair Walberg and Representative Courtney, we are headed in the right direction. But let me be clear. Any changes to FECA must be driven by one question.
▶ 0:12:19How does this help workers? The conversation must be centered on listening to workers. Too often decisions about federal workforce policy are made without real engagement with those directly impacted. We need to hear from the workers navigating the claim process, the physicians providing care, and the families who face financial insecurity when benefits are delayed. Their experiences must guide our reforms.
▶ 0:12:47To help us understand the importance of a strengthening FECA, I want to share two stories from my home state of Minnesota. In November 2020, a postal truck was hit by a speeding SUV causing the truck to flip over. The letter carrier inside was found unconscious. He suffered numerous injuries including a broken wrist, a torn ACL, a broken chest bone, internal bleeding, and a concussion.
▶ 0:13:17Since the incident, he has lived with PTSD and cognitive communication deficit. Sadly, he will never be able to work again. However, it is only due to FICA that his medical treatment is covered and he and his family receive steady cash benefits that while falling short of a paycheck, he once earned remain a vital lifeline.
▶ 0:13:41This is why FICA matters because when tragedy strikes, this law is what stands between a lifetime of hardship and a measure of Now, more than ever, we must remember that federal workers aren't just serving a government. They are serving all of us. And so at a very least, they deserve FICA program that is fair and worthy of services they provide to the public.
▶ 0:14:07The tireless and often fearless dedication of our federal workers has real-world impact on the safety and well-being of our communities. Just last week, I had the privilege of honoring a letter carrier from my district in St.
▶ 0:14:21Louis Park who was named 2025 National Hero of the Year for saving a person trapped in a burning This is only one example of the spirit of public service that animates our federal workforce and it's exactly why our government must be committed to protecting them as they are protecting others.
▶ 0:14:43Because when our federal workers know that they will be treated fairly and supported in times of injury or illness, it builds the kind of stability that strengthens not only the workforce but also the quality and delivery of public service that millions of Americans rely on every day. Now, I know we will hear concerns about cost efficiency and of course, we all want to use tax dollars responsibly.
▶ 0:15:09But the smartest and most cost-effective thing we can do is invest in workplace safety. Fewer injuries or illnesses mean fewer claims and lower long-term costs. That is why preserve prevention matters like the proposed OSHA heat stress rule aren't just good policy. They are common sense. Prevention is always cheaper than treatment and when workers have the training equipment and protection they need everyone benefits.
▶ 0:15:40Productivity goes up, injury rates go down, and public trust in our institutions are strengthened. This shouldn't be a partisan issue. It's about dignity. It's about fairness. It's about whether we value the people who put in the work every single day to serve this country. When they get hurt, they shouldn't be punished. They shouldn't be pushed into poverty. They shouldn't have to jump through hoops to get the care and compensation they have earned.
▶ 0:16:08And they certainly shouldn't be treated as a liability or line items. These are human beings with families, careers, and futures that depend on our decisions in this room. We owe it to our workforce and to the public to maintain a system that reflects our values of fairness, compassion, and respect for those who serve. And we owe it to the institution to pursue those values in a bipartisan way building on past reforms with renewed focus on the people who are the foundation of our government's daily operations.
▶ 0:16:39So, I hope that is what today's hearing will reflect. A real commitment to protecting workers, not cutting corners, a willingness to improve FECA, not by weakening its promise, but by strengthening the support it offers. Thank you again, Mr. Chairman, and I yield back. Pursuant to committee rule 8C, all members who wish to insert written testimonies into the record may do so by submitting them to the committee clerk electronically in Microsoft Word format by 5:00 p.m. 14 days after this hearing.
▶ 0:17:10And without objection, the hearing record will remain open for 14 days to allow such statements and other extraneous material noted during the hearing to be submitted for the official hearing record. I note that the for the subcommittee that some of my colleagues who are not permanent members of the subcommittee may be waving on for the purpose of today's hearing. Now to the introduction of witnesses. I'll I'll start first witness is going to be Mr.
▶ 0:17:37Scott Simondera who is an analyst of the Congressional Research Service at the US Library of Congress here in Washington D.C. Our second witness is Mr. Louis Santos, the acting Inspector General for the US Department of Labor in Washington D.C. Our third witness is Mr. Brian Renfroe, the national president for the National Association of Letter Carriers in also in Washington D.C. And our final witness is Ms.
▶ 0:18:06Tammy Hull, the Inspector General for the US Postal Service as well in Washington D.C. Thank you to all of you for being here. We look forward to hearing each of your testimony today and pursuant to committee rules, I would ask that each of you limit your oral presentation to three minute summary in addition to your written statements you've provided. The clock will count down from three minutes as committee members have many questions for you and we look would like to spend as much time as possible on questions.
▶ 0:18:36Pursuant to committee rule 8D and committee practice, however, we will not cut off testimony until you reach the five minute mark. I would also like to remind witnesses to be aware of their responsibility to provide the accurate information as they testify before the subcommittee here today and at this time, I will now recognize our first witness, Mr.
▶ 0:18:58Simondera for your Thank you Chairman McKenzie, Chairman Walberg, ranking member Omar, members of the subcommittee. I'm Scott Simondera and I am an analyst at the Congressional Research Service. Thank you for inviting CRS to testify at this hearing today. Workers' compensation has been described as a grand bargain between employers and their employees.
▶ 0:19:24For the federal government and its workforce, the grand bargain is FECA, the Federal Employees' Compensation Act. FECA provides compensation for the duration of a worker's disability, which can last until death.
▶ 0:19:39While workers may choose to convert to federal retirement benefits, they are not required to do so, resulting in host agencies paying benefits for some workers after their expected retirement Past FECA reform packages have included proposals to reduce the amount of FECA compensation at retirement age to encourage workers to leave the FECA rolls for federal retirement.
▶ 0:20:08converting from FECA to federal retirement could result in some workers, especially those injured early in their federal careers, receiving a reduced benefit at retirement age. While most workers' compensation systems base the level of compensation on 2/3 of a worker's pre-disability wage, FECA provides augmented compensation in cases in which a beneficiary has a spouse or dependents, bringing the level of compensation up
▶ 0:20:38to 3/4 of the pre-disability wage. While augmented compensation provides additional resources for a larger it exceeds the compensation offered by a majority of state workers' compensation systems and may result in a beneficiary receiving more from FECA than what their net pay would be if they return to work.
▶ 0:21:02Past reform packages have proposed increasing the base rate of compensation and eliminating augmented compensation. All workers' compensation systems have waiting periods of several days before compensation is paid, with these waiting periods serving in similar ways to deductibles in other insurance programs.
▶ 0:21:24FECA is unique among workers' compensation programs in that workers with traumatic injuries are eligible for up to 45 days of continuation of pay at 100% of their regular salary from their host agencies before receiving FECA The FECA waiting period in these cases begins not at the time of injury, but after the continuation of pay.
▶ 0:21:49This postponement of the waiting period may blunt its deductible function and result in fewer injured federal employees sharing in the costs of their compensation. In 2006, Congress moved the waiting period for postal workers to before continuation of pay, and since then there have been proposals to implement this change across the federal government. This concludes the testimony of CRS. I would be happy to answer any questions the subcommittee may have.
▶ 0:22:21Thank you. And next we'll go to Mr. Good morning, Chairman McKenzie, Chairman Walberg, ranking members Omar, ranking member Scott, and members of the subcommittee. Thank you for the opportunity to testify today on our oversight of the Federal Employees Compensation Act program. FECA provides workers' compensation benefits to nearly 3 million federal employees across all three branches of government.
▶ 0:22:47In fiscal year 24, the program paid approximately 3.7 billion in benefits to over 178,000 Because FECA is the only remedy available to injured workers, and because employing agencies bear the it is critical that OWCP adjudicate claims promptly, issue payments accurately, and support workers in their recovery.
▶ 0:23:11Equally important, OWCP must ensure taxpayers only pay for medical benefits that are safe, effective, necessary, and Our audits and investigations have shown the FECA remains vulnerable to fraud, waste, and abuse, especially in its pharmaceutical spending. Since FY '15, we have opened over 320 investigations that led to 322 convictions and over $1.7 billion in monetary outcomes.
▶ 0:23:41One notable case involved two pharmacy owners who paid doctors kickbacks to prescribe unnecessary compound creams. These were often mixed in the back room of pharmacies at a cost of $15 per prescription and then charged to FECA at The scheme led to a $405 million forfeiture, the largest involving a health care fraud case, and very long prison sentences.
▶ 0:24:08In addition to our investigative work, we have issued 33 and 79 recommendations over the past decade. Most recently, we found FECA overspent up to $321 million on prescription drugs between FYs '15 and and allowed thousands of inappropriate or dangerous prescriptions, including fast-acting fentanyl, even after controls were in place. In response to your work, Mr.
▶ 0:24:31Chairman, OWCP has significantly reduced pharmaceutical spending from $436 million in FY '16 to $43 million in FY '24 and strengthened oversight using data analytics and a pharmacy benefit manager. While these are very positive steps, more remains to be done.
▶ 0:24:49To further improve FECA, we recommend that Congress provide OWCP with statutory access to Social Security wage records and NDNAH move the 3-day waiting period to immediately follow work-related injury and authorize O WCP to suspend indicted providers from participating in the program. Mr. Chairman, thank you for the opportunity to testify and for the committee's continued support of the OIG's work.
▶ 0:25:14I have served now at the OIG for 15 years and have very much enjoyed working with the committee and especially the staff in many critical oversight issues. I also want to pause here to thank the dedicated OIG staff for their work. All of the results I just spoke of are a result of their work, so thank you for that and I'll be pleased to answer any Great. Thank you, Mr. Santos, and I would concur that we do have excellent staff here on the committees. Thank you for recognizing that. Next up, I will recognize Mr.
▶ 0:25:44Renfroe for your How about now? Thank you, Chairman McKenzie, and Ranking Member Omar for the invitation to testify.
▶ 0:26:00Thanks also to the subcommittee members for the chance to bring the voice and views of America's 220,000 hardworking letter carriers to this I'm a letter carrier from Hattiesburg, Mississippi, who was drawn to work with my union, the National Association of Letter Carriers, in large part to protect the health and safety of my fellow letter carriers. We carry much of the nation's communication and commerce on our shoulders every single day.
▶ 0:26:28Five years ago during a global pandemic when most businesses shut down, as the rest of the nation sheltered in place, letter carriers did not take one day We were lifelines for the American people, delivering letter mail, ballots, test kits, and providing a sense of normalcy during a time of worldwide uncertainty. And as e-commerce continues to boom, the people of this country are as dependent on our service as they have ever been before.
▶ 0:26:59And while serving the American public, despite our best efforts to avoid them, workplace injuries at the Postal Service are a fact of life. Vehicle accidents, repetitive motion injuries, heat stroke or frostbite or other injuries caused by weather extremes, assaults by criminals, and even more mundane injuries like slips and falls are common in the working lives of the letter carriers that I Worker workers' compensation programs like FECA are incredibly important
▶ 0:27:30to America's working class, particularly to those with jobs like The people who shower after work instead of beforehand. The ones who earn their living with physically taxing jobs, and those whose jobs expose them to the risks of injuries, occupational hazards, and unfortunately disabling accidents.
▶ 0:27:53The goal of the FECA program is to ensure that no worker suffers financially from their workplace Postal employees account for nearly half of the claims made to the Office of Workers' Compensation Programs each year, and letter carriers file most of those claims.
▶ 0:28:09When letter carriers are injured on the job or develop occupational diseases, FECA benefits provide critical financial support, allowing them the time to heal and rehabilitate so they can rejoin the workforce, or to compensate them for their lost wages if they are permanently unable to do so. I'd like to bring the subcommittee's several ideas that will reduce the overall usage of workers' compensation in the first place. The first is a hazard of excessive heat.
▶ 0:28:39Letter carriers report hundreds of heat to the Postal Service annually. The Postal Service's productivity focused culture often even discourages us from reporting these injuries. Next is crime. Since the COVID-19 pandemic, postal employees and city letter carriers in particular have experienced a significant increase in crime. Between 2019 and 2023, violent crime against postal employees nearly doubled.
▶ 0:29:10More than 2/3 of these attacks involved a firearm or some other kind of weapon. Tragically, five letter carriers have been murdered while delivering mail since 2022. NALC is committed to working with the Postal Service and Congress to do everything we possibly can to mitigate risk due to these factors and prevent injuries of any kind.
▶ 0:29:35We have worked with the Department of Labor and OWCP specifically over multiple administrations to improve efficiency in claims processing, which benefits both the department and the injured worker. And we are committed to continuing that work throughout this administration just as we did during the first Trump administration. When a letter carrier is injured, we must ensure they receive the care and the help that they need.
▶ 0:30:00Reducing benefits or making it harder for injured workers to access care are contrary to the goals we all share: prompt provisions of benefits to injured employees and a more timely return to the workplace. Thank you again for inviting me to testify. I look forward to answering any questions you may have. Thank you, sir. And lastly, I will recognize Ms. Hall for your testimony. Thank you. Good morning, Chairman McKenzie, Ranking Member Omar, and members of the subcommittee.
▶ 0:30:28Thank you for inviting me here today to discuss our work related to the Federal Employees Compensation Act. When postal employees sustain a work-related injury or occupational disease, they are covered by FECA. While the Postal Service helps employees file claims and manages efforts to return injured employees to work, the Department of Labor administers, implements, and enforces FECA. The Postal Service reimburses DOL from postal revenues, and the workers' compensation costs are significant.
▶ 0:30:57Last year, it paid almost a billion and a half dollars in claims and an additional 96 million dollars in administrative Our work at the OIG found the Postal Service is taking steps to reduce its workers' compensation costs, but more can be done to return employees to work and reduce costs. We identified areas where current law restricts the Postal Service from using private sector best practices, including those adopted by some state governments.
▶ 0:31:24Allowing these best practices would have saved the Postal Service almost 350 million dollars a year. One significant restriction is FECA does not provide for settlement of claims through lump-sum payments, and correspondingly, does not have limits on total compensation or length of benefits. As of last fall, more than 600 postal employees age 80 or older were receiving benefits. Three are currently 100 or older. Claims are commonly paid over many years, tax-free, with cost-of-living adjustments.
▶ 0:31:55Thus, the incentive for employees to return to meaningful meaningful employment are minimized. Other best practices include requiring employee employer-selected physicians and the use of generic medications when We also do investigative work related to FECA. We coordinate with DOL OIG to identify and investigate workers' compensation fraud by postal employees and health care providers. Our investigative work in this area results in substantial savings.
▶ 0:32:24We recently closed a case in Texas, along with DOL OIG, where farmers pharmacies paid kickbacks to doctors to prescribe certain medications based on high reimbursement rates, instead of patient This case returned about a hundred million dollars to DOL. To support this work, we embrace technology and data analytics.
▶ 0:32:45For example, to identify provider fraud, we implemented an in-house artificial intelligence and machine learning model that identifies over billing for physical therapy and chiropractic care. Our work in this area has identified vulnerabilities and led to DOL making numerous policy changes in how it manages the workers' compensation program, including limitations on compounded drugs, billing restrictions, and third-party controls.
▶ 0:33:13Over time, we estimated the changes saved the Postal Service and ratepayers over a billion and a half dollars. These changes also resulted in cost savings for all agencies with employees on workers' compensation, as well as improved patient safety. Thank you again, and I'm happy to answer any Thank you.
▶ 0:33:35Under committee rule nine, we will now ask questions of witnesses uh under the five-minute rule, and I'll recognize myself first for five minutes. Uh my first question is for Mr. Simendera. Under the FECA program, you mentioned that injured workers with dependents can receive augmented compensation at 75% of their wages, and for some FECA beneficiaries, a 75% tax-rate wage-loss benefit exceeds their pre-injury gross income.
▶ 0:34:07Do you see or have you studied at all uh how this may serve as a disincentive to return to work? Well, it certainly could be a The as you said, the if you look at the actual take-home pay, it can be higher under FECA because you're talking about with augmented compensation, 75% of the pre-disability wage, tax-free, and without other many other payroll deductions.
▶ 0:34:38you can't receive a your normal federal salary increases, you can't get a competitive or a merit raise or promotion while you're on FECA, but you do receive an annual cost of living adjustment. Even in years when federal employees that are working do not receive an adjustment. And so, certainly this has been identified as one potential disincentive for some injured workers to return to the workforce.
▶ 0:35:09Your written testimony also notes that the workers compensation program in 38 states and the District of Columbia, as well as federal longshore programs, have set their benefits to 2/3 of a worker's gross wage with no augmented compensation for a worker's dependents.
▶ 0:35:24Can you discuss how those programs are performing in comparison to FECA, and what can we learn from those state models and the federal longshore always should exercise caution when comparing the state workers compensation and even the federal longshore program with FECA because there are differences that go beyond even the level of For example, most workers in this country receive workers compensation
▶ 0:35:55through state programs and through private insurance companies. There's a private insurance company. Thus, it is a more adversarial model than what you have in FECA where you're dealing only with the Department of Labor. States, as was mentioned by the uh Postal Service Inspector General, states have options for lump sum settlements of claims. FECA does not.
▶ 0:36:22States uh uh many states have caps on benefits, either a total amount or an age cap, Or um, which can essentially force or force people off the rolls into In addition, uh, majority of states limit the choice of medical provider. Again, in FECA, you have a near unlimited choice of treating physician.
▶ 0:36:50So, I think when you compare FECA to the and you want to say, well, are states putting more people back to work? Do they have lower benefit, uh, durations and things like that?
▶ 0:37:02It's important to look at the whole of benefits under FECA, and I would say, generally speaking, FECA is more generous in its benefits and administration than what you typically see in the state workers' compensation programs or even in the federal Longshore and Harbor Workers' Compensation Act program. Next, I'll go to Mr. Santos.
▶ 0:37:33Uh, your written testimony highlighted many examples of medical benefits fraud and the impact on prescription opioid abuse on the FECA program. The Office of Inspector General's audits have provided critical assistance to DOL to help solve those problems. What further reforms would you recommend to further curb medical fraud within the FECA program? Thank you, Mr. Chairman.
▶ 0:37:57I'll preface my response by giving OWCP, uh, quite a bit of credit for their progress over the last 10 years. Um, as a result of many of our audit oversight work, as well as a result of our investigations and working closely with postal OIG and other OIGs, OWCP has taken several actions that have resulted improvements in both the prevention of improper payments and fraud as well as the overall management of the program.
▶ 0:38:27In fact, we've seen both as it relates to the management of compounded drugs, the actions they took in response, as well as the management of opioids in the program, significant progress on the part of OWCP. Having said that, there are two recommendations that we have to Congress that we believe would further strengthen the program and provide OWCP with additional tools to prevent improper payments and fraud in particular.
▶ 0:38:54The first one is to authorize OWCP to access Social Security wage records as well as the national director of new hires, which provides contemporaneous information about employment of individuals in the in the United in the United States. And in doing so, would afford OWCP the opportunity to cross-match that information to identify underreporting of income or outside employment.
▶ 0:39:19We've also recommended, um, and this is a long-standing recommendation of the OIG, for OWCP to be authorized to suspend medical providers who are indicted for fraud involving the FECA program. Under current law, OWCP continues can continue to pay for services being provided by medical providers that we or other OIGs have indicted, uh, with with crimes associated with fraud against the OWCP program.
▶ 0:39:49Sounds like some good recommendations there. Thank you. Uh, with that, I will conclude my time and I will now recognize the ranking member for the purpose of questioning the witnesses. Uh, thank you, Chairman. Again, thank you all, uh, for being here with us, uh, today and for your, uh, testimonies. Mr. Renfro, um, if if we're to think about some of the challenges that letter carriers experience while navigating, um, the FECA process.
▶ 0:40:19Uh if you were to start with the challenges that your members experience, what are some reforms um that Congress should consider um that would be timely and high-quality high-quality claim process and benefit awards? Your question is very timely.
▶ 0:40:38Um as I mentioned in my my opening, we have made a significant amount of progress in recent years uh with a DWCP, but one issue that continues to be prevalent is um access to physicians that treat um injured federal employees, and uh legislation has just recently been entitled uh Improving Access to Workers Compensation for Injured Federal Employees Act, and this is um bipartisan legislation
▶ 0:41:08that would expand that access to include physician's assistants and nurse practitioners. Uh that really is a common-sense solution to that problem that follows a trend that we have seen in the larger in healthcare really outside of of our world around the thank you. It is it's um fascinating.
▶ 0:41:29I think you talk about uh accessing um uh um physicians, and and we talked about how the you know, um one of the other witnesses talked about how there is no cap on on who you can see um in in regards to the benefits. So, it's fascinating to see um that sort of Um Mr.
▶ 0:41:51Chairman, I request an unanimous consent to enter into the record a document provided by the Workers' Injury Law and Advocacy Group summarizing stories provided by workers' compensation attorneys of challenges that their clients have faced in the FECA program. Without objection.
▶ 0:42:11I ask for unanimous consent to enter into the record a redacted letter from informing a Veeka uh claimant that an appeal hearing could not take place because the administration has canceled its contract for court reporters who transcribed Without objection? Uh Mr. Renfroe, how important is it for workers to be able to have a timely and fair hearing in their cases?
▶ 0:42:41I think it's very important. I think it's important of course for the injured employee to get the benefits that the law entitles them to. I also think it's very much in the best interest of the Department of Labor and the best interest of OWCP to be able to provide those benefits as efficiently as The hearing and adjudication process is a part of that for some that file Um you mentioned that there have been recent changes in regards to the availability of court reporters to contracts.
▶ 0:43:10We have seen some delayed hearings uh in recent months as a result of those actions. So we would very much be in favor of um improving or eliminating any barrier to access to whatever step in the process even if that was a step that required a Well, appreciate that. Uh Mr.
▶ 0:43:31Hall, um you've heard uh President um Renfroe testify that uh the risk that letter carriers and other Postal Service employees uh face from heat stress uh which can cause heat-related illnesses such as heat cramp, organ damage, heat stroke, and even death. Um what has your office found regarding um USPS's need to protect workers from heat stress? Yes, we did a review.
▶ 0:43:59I think we issued a report it was about a year ago I believe related to the heat issues that postal employees experience and found that obviously significant problem. We did evaluate what the Postal Service was doing to protect its employees from heat and found that they were doing pretty good job of providing um equipment and things like that to protect employees, but we found real challenges in the training area, making sure that employees were adequately trained, that uh records were accurate, and that employees actually
▶ 0:44:29completed training so that they knew when, you know, if they were experiencing symptoms that they should stop and take a break and and and get water and those kinds of things. So, um so we we um have done work in that area and we're keeping our eye on it in case we need to do some additional work in that space.
▶ 0:44:48And how how do you see um overcoming some some of these challenges with with training and and and with the workers when we're seeing um layoffs take place and and folks having to take on uh extra routes and they have to complete it within the amount of hours they were already doing their previous routes? Yeah, I think that management has to be aware of the of the stress that that the employees are under and manage that stress effectively.
▶ 0:45:14Also, I think that it's really important that the Postal Service rolls out the vehicles with air conditioning as part of the vehicle itself so that uh it's hard to believe that there are still vehicles on the road delivering mail that don't have air conditioning in this day and age. That's an important factor in this in this as well. Then I'm sure Mr. Renfroe can speak more more effectively to than than even I can, so. Appreciate that. Thank you. You're back. Thank you.
▶ 0:45:43Next we will go to Chairman Thank you, Mr. Chairman, and thanks to for the panel for being here. And while I have you here, uh letter carriers, I want to say thank you for the service you provide. being in a rural area myself, uh it's a rural letter carrier, I think of most recently retired Jean who took special attention to my uh uh late um mother who lived in a cottage on our property out on the farm.
▶ 0:46:10And um Jean always was sure where my mom was at and special needs were cared for. I didn't get the same care but uh my mom did. So, thank you. Thank you for the work that you do day in day out. Um last Thursday Congressman Joe Courtney and I introduced HR 1370 or 3170 the Improving Access to Workers' Compensation for Injured Federal Workers Act.
▶ 0:46:34This bipartisan bill amends FECA to allow injured workers to receive treatment for work-related injuries from state-licensed physician assistants and nurse practitioners. Uh which in my neck of the woods uh are in many cases the doctors in the rural community. Uh this is prohibited under current law and is contributing to long delays in care for many federal workers. Delays in care means delays in injured workers returning to their jobs.
▶ 0:47:05Um and and nurse practitioners and physician assistants are a critical component in our health care delivery network. And we have our our And if we are trying to make the federal government more it makes no sense to prohibit workers from receiving care from a reputable NP or PA.
▶ 0:47:25HR 3170 updates the Federal Employees' Compensation Program to make it more efficient by improving access to care and getting federal employees back to work quicker. Uh Mr. Simendera, um as I mentioned, under current law only physician physicians can certify a worker compensation claim in the FECA program.
▶ 0:47:51Uh that's why Congressman Courtney and I introduced HR 3170 to allow NPs and PAs to treat FECA beneficiaries. Can you describe how this change would increase access to care for injured federal workers, especially for those in rural areas? One of the great strengths one of the great advantages of the FECA program is the right to choose your treating physician.
▶ 0:48:19That is a right that is not given in a number of state workers compensation programs. However, there have been persistent complaints about FECA and the other OWCP programs that while you have the right to choose your treating physician there isn't a treating physician available for you to choose, especially when you are outside of the Washington area or other metropolitan areas that have potentially a lot
▶ 0:48:49of federal employees. Expanding the pool of providers to include nurse practitioners physician assistants or as I think their national academy now prefers be referred physician associates expand the pool and allow greater access to physicians.
▶ 0:49:13It also could bring certain non-traditional facilities such as urgent care clinics or medical clinics in retail stores into a greater role in providing care. The question that would have to be remain to be seen is would this be enough to offset the problems that have got us here in the first place with why we don't have enough physicians doing the treating. I have heard complaints about issues with the billing system.
▶ 0:49:44issues with frequent changes in the payment system that frustrate physicians and their staff. Difficulty with websites including difficulty that the claimants have navigating the website where you can find a physician and an overall lack of awareness for lack of a better word marketing of the program to providers.
▶ 0:50:07So, increasing the pool I think would increase accessibility but it's not the only potential solution to the problems of access to medical care. Where does this start? Okay, thank you. In the final few seconds uh Mr.
▶ 0:50:24Santos, you you intimated the need for the ability for uh OWCP to access Social Security Expand on why that would be an important Thank Thank you, Mr. Chairman. It would be very helpful for OWCP to have access to both Social Security wage records as well as the National Directory of New Hires.
▶ 0:50:47It would help OWCP would be able to more quickly identify unreported income by claimants as well as detect detect claims who have returned to work. It would also allow me for the timely and automated matching cross-matching of these systems would improve fraud prevention overall, improper payments prevention overall, as well as help the OWCP direct its very limited resources to those claims that require more attention
▶ 0:51:17from a fraud prevention perspective. And on the back end, it would assist the OIG in our efforts to investigate related crimes. And save the proper funds for the the proper recipients. Thank you. I yield back. Thank you. Next we'll go to Ranking Member Scott.
▶ 0:51:54Thank you. Thank you, Mr. Chairman. Mr. Santos, you mentioned the um scheme involving compound drugs uh where I think you mentioned they mix up about $15 worth of materials and charge $16,000. did you refer any of the doctors or physicians to the licensing boards as that investigation was going on? Thank you. Thank Thank you, Ranking Member Scott.
▶ 0:52:22Um I know this is a a matter that is close to your heart. We've discussed this with your office for for many years now. This These cases go back uh to really the beginning of the issues involving compounded creams, which were originally identified by both our office and Postal OIG office. And in the course of our investigations, we have referred many uh medical providers to include doctors to their respective boards for suspension as well.
▶ 0:52:49Um has the uh actions of DOD reduced your capacity to do your job, canceling leases, credit cards, or Uh thank you, Ranking Member. Um there has been some limited impact on the the ability of Labor OIG to conduct its work. I believe four of our leases were included in the government-wide cancellation of commercial leases.
▶ 0:53:14Um since then, I've engaged with both the Secretary and the Deputy Secretary at the OL manages our space program. They have been very supportive of the need for Labor OIG to continue maintaining these geographic locations geographical locations. Um many of these offices were law enforcement offices, so we have very specific space requirements such as weapon storage, grand jury information, evidence rooms, interview rooms.
▶ 0:53:39And my understanding at this point in time is that some of these decisions are being revisited and we're I'm certainly hopeful that we'll be able to maintain these these locations. The same is true for the purchase cards and the travel cards. OIG was in fact was in fact impacted originally by having the suspension of both um purchase cards and travel cards.
▶ 0:54:01I engaged with the OIG leadership immediately and within hours they understood the requirement for law enforcement to continue its work and reverse those decisions. So, again, it has had some limited impact on our work. Thank you. Can you say whether or not FECA is more vulnerable to fraud than other health I cannot say that, Ranking Member Scott.
▶ 0:54:23I believe that the issues we find in the FECA program as it relates to both claimant fraud and medical provider fraud are very similar to the issues that are identified by other law enforcement um programs in programs such as Tricare or Medicare or Medicaid or in the private sector. So, the same types of schemes and in targeting of the system, we see that in the FECA program as well.
▶ 0:54:52So, now I I think it's very much uh a similar situation than many other health care benefit programs. Thank you. Mr. Renfro, you meant we've heard about the problems with heat and Uh there's a legislation that's been pending about heat stress at certain temperatures and whatnot you have to take certain actions. Are you prevented You've been trained apparently to to recognize problems. Workers have been trained.
▶ 0:55:22Uh is there any limitation or resistance to them taking a break when the heat gets to a certain temperature humidity is a certain temperature when stroke is much more possible. So, the the Postal Service has a heat illness prevention plan, a HIP, as it's called, in place. Um it has been in place for a few years.
▶ 0:55:49In fact, the uh earlier discussions that that OIG Hall was referencing about um training that would the issue we had with training a couple of years ago is part of that HIP.
▶ 0:56:02Um the problem with that HIP is it does not include all of the necessary mitigating factors that experts recommend to avoid the hazard of excessive heat, such as regimented work rest a work rest regimen um when an employee is not in the heat for a period of time due to vacation or illness or they're off work, and acclimatization period when they return.
▶ 0:56:30Um those are currently missing from the Um there is a pending rule uh that would apply a heat safety standard to workers all across the country. Um we have, of course, been in communication with the Department of Labor about that. We strongly support I'm trying to get that rule. Thank you. And Mr. Um Mr. Simondale Do you know how long it takes to get a uh disability claim appealed if you have a problem?
▶ 0:57:00If you disagree with the analysis? I I don't have uh that data available in the system right Does anybody on the panel know how long it takes to take take a disability Thank you. Thank you, Mr. Chairman. Thank you. Next we'll go to Mr. Fine from Florida. Well, thank you, Mr. Chairman, and thanks for this having this important hearing today.
▶ 0:57:28Um before I get to my questions, I I would note my perspective on this. I think it's incredibly important that we take care of those who get hurt on the job when they're working with the federal government. I don't think anybody disagrees with that. But fraud puts the legitimacy of any of those types of programs at risk. And more importantly, the way I look at the world is when you give a dollar to someone who didn't deserve it, you steal it from someone who did. And eventually, we're going to come up in a world where we run out of money.
▶ 0:57:56And so, if we don't get rid of the fraud, we're going to end up cutting the things that we actually need to do. So, Ms. Holland, in your written testimony, you talked about express support for using technology and data analytics and when reviewing FECA expenditures. You talked about using AI and machine learning models to identify overbilling, which is a you know, nice way of putting fraud. Um overbilling for physical therapy and chiropractic treatments. Using those technologies, um what kinds of of analytics, what have you learned from doing it?
▶ 0:58:26In effect, how much fraud have you uncovered by doing that? Yeah, we we have um worked closely with uh DOL OIG in this space, but we we have a pretty sophisticated data analytics program and have used it and pointed it at this data set to identify fraudulent activity. Um in in some cases, we've identified upcoding or use of codes that are that result in higher reimbursement rates.
▶ 0:58:56We've identified uh employees that are um getting significant travel reimbursements to drive hours and hours for treatment and things like that, which is in some cases can be fraudulent. We've identified providers that are that are um prescribing these compounded pharmaceuticals, as we talked about We cannot um we we see lots of potential fraudulent activity in this space.
▶ 0:59:24We've opened at the Postal Service OIG, we've opened about a thousand cases in the last five years related to claimant fraud and another over a hundred related to provider fraud and worked many of those jointly with um with uh Louise's staff at DOL OIG. There's There's a lot there.
▶ 0:59:42There's a And the more we we look using data analytics at this data set, the more concerns that we have in in some of these areas from providers, but also from in some cases claimants uh uh the the issue that that um uh Louise raised about identifying um people that have gone back to work and that that are being compensated through other jobs while they're on the rolls on the periodic rolls for uh for uh their
▶ 1:00:12uh the Postal Service. We've many of our thousand cases that I was talking about are in that space where we've identified postal employees that are receiving benefits, but are also working other So, if I were to put that in sort of analytic terms and numbers, sounds bad. Are are we talking about like a hundred thousand dollars worth of fraud, a million, ten million, a hundred million, a billion? We're talking about roughly three billion dollars here. What's your Based on the analytics you've done, what's the scope of the problem?
▶ 1:00:41How many zeros come after the number? Yeah, it's probably in the in the hundreds of millions of dollars in certain aspects. What what What we see because the Postal Service employees often and and employees in the space can go on the periodic rolls. If they're committing fraud, they're not going to come off the rolls until they're investigated and are required to come off the rolls. And an employee that goes on the rolls when they're um early in their career, 20 30 years old in their career, that's a long-term liability.
▶ 1:01:11So, that's that's you know, a million dollars or more over a career. So So that's So that's hundreds of millions of dollars that's either being taken from a postal worker or somebody else who actually has a problem that they needs help with or that's money that we're borrowing from our grandkids to give to people who don't need it. Is that a reasonable way to look at it? It is. Thank you, Mr. Chairman. Thank you. Next we'll go to Mr.
▶ 1:01:40Mesmer from Thank you, Chairman. Mr. Semendara, under the FECA program, current schedule awards pay a fixed number of weeks for loss of an impairment of a body part based on written tables written decades ago. How should Congress update the schedule framework so the awards track contemporary medical impairment guides and labor market related realities? Yes, in fact, it's the current schedule basically goes back to 1966.
▶ 1:02:09Has not been substantially changed since then. Since that time, for example, the American Medical Association guides to the evaluation of permanent impairment is now on its sixth published edition with now annual digital updates.
▶ 1:02:25Meaning, if you consider that and that is a guide used throughout workers compensation, including in the FECA program, they're updating that multiple times now annually updating it and yet the schedule awards not been updated since 1966.
▶ 1:02:44Another comparison, the VA the VA in the VA SRD Veterans Affairs schedule for rating of disabilities since 2017 alone has updated their rating system for hundreds of medical conditions across 10 major body systems. So, there are certainly is an opportunity for change, but only Congress can make the change.
▶ 1:03:11There is nothing in the law that allows for a change in the schedule and scheduled benefits through going to take a law to amend it. If a goal is to increase flexibility going forward, then one thing certainly to consider is allowing for changes to be made through rulemaking rather through Congress.
▶ 1:03:37That is, for example, how the VA changes its schedule of rating disabilities. That's also how other uh other compensation programs um utilize that as well. But there certainly is an opportunity for change. Hasn't been changed since 1966. Um but only Congress can make that Thank you. Mr.
▶ 1:03:58Santos, interagency communication and coordination are integral to the operation of the FECA The Department of Labor's Office of Workers' Compensation Programs works with federal agencies and the workers to process claims, provide benefits, and return employees to work. Which aspects of interagency interagency communication and coordination are working well, and which ones are not? Thank you, Representative. We Our office has not looked at this specific issue recently, but I recognize the importance of OWCP to maintain these lines of communication.
▶ 1:04:30It assists both the claimant in in in receiving the benefits that they entitled to, as well as the agencies right in in in communicating directly with with OWCP. This has been has been brought to my attention previously, and I understand that OWCP is also aware of limitations that they have in communicating with the agencies. We have tried to facilitate that access on the part of OIGs by facilitating access to data, to to documents, to information.
▶ 1:04:58My understanding is also that OWCP has put in place a protocol, I believe in 2007, seeming to facilitate this uh communication between OIGs who may be investigating claimant fraud and OWCP so they can more readily receive the the information. But, we recognize that this is an area that where OWCP can make improvements.
▶ 1:05:19I would note, I think from their perspective, and again, I can't speak for OWCP, but they have reported I believe each one of their claim examiners are responsible for over 500 claims in a given moment, and and the the industry average should be between 120 and 200. So, some of this is a reflection on resource constraints on the part of OWCP as well, but we recognize that more can be done. Thank you. Ms.
▶ 1:05:47Hall, your office's 2023 report found that the cost per work hour of postal workers' compensation program runs 31 to 41% higher than in private industry. It also found that the USPS could have saved nearly $693 million in just two had it been able to use private sector cost containment tools. Which cost cost containment mechanisms should the Congress authorize the USPS to adopt so this workers' compensation program more closely mirrors private sector practices?
▶ 1:06:16Yes, as part of that work, we looked at how others were were managing their costs in their workers' compensation programs. And what we saw was things like limitations on dollar amounts and duration of benefits. We saw something that I mentioned in my statement about allowing allowing settlements to to reduce the ongoing costs, buyouts, and settlements to to help reduce the costs.
▶ 1:06:41We also looked at the use of employer-selected physicians versus employee-selected physicians. Those those are three of the areas that we saw were common in private sector and in state workers' compensation programs that that the FECA does not have. Okay. Thank you. Yield back my time. Thank you. Next is Ms. Miller from Thank you. Mr.
▶ 1:07:09Santos, under the current FECA program, there have been instances of workers reporting an injury to collect disability benefits while they are subsequently found to be secretly working another strenuous job. What is being done to increase oversight and address this fraud and abuse within Thank you, Representative. This has been a concern of ours from an OIG perspective for many years.
▶ 1:07:33Not only our office, but also Postal OIGs and many other OIGs who are responsible for investigating claiming fraud associated with their own programs. Many years ago, following the issues we identified jointly with Postal OIG on the compounded drug matters, Congress took action and provided both the authority and the funding for OWCP to create what's called a program integrity unit, which has been in many ways a model of how this should be looked at from
▶ 1:08:03an oversight perspective. So, they are constantly using data analytics, so is our office as well as Postal OIG, to look at the claims um because what we have found, particularly over the pandemic, is that data really is the key to provide adequate and and comprehensive oversight of these matters. And then the program integrity unit refers those cases to my office, which then we take action in in investigating these matters.
▶ 1:08:30It remains a concern, certainly from our perspective, um but uh to OWCP's credit, they are doing about a job identifying these matters and sending it our way for investigations. And we also work very closely with other OIGs to pursue those Thank you. And related to this, there are also some instances of injured workers who continue to claim benefits long after they have recov- recovered. What is being done to ensure this abuse of FECA benefits is reduced?
▶ 1:08:59Yes, that's also a very important uh matter and a concern for our office for for quite some time. This is one of the reasons we've recommended that Congress, in looking at potential reforms for the program, authorize OWCP, and specifically the pro- the the program integrity unit I mentioned, to have access to Social Security wage records, as well as the national director of new hires. The NDNH specifically has uh updated information on income and employment.
▶ 1:09:28Uh this is an HHS database, I believe. We employers are required to update the database within 20 days. So, providing that access to OWCP would facilitate in this data matching and data analytics program uh I've referenced, and then in identifying when claimants have returned to work or at times when they are unrep- uh underreporting their earnings, which is also important. Those sound like good solutions, and we need to make it happen.
▶ 1:09:53Also, I was wondering, are there is there any public recourse for reporting abuse of the In in what sense, specifically? Well, I'm just like is there is there any kind of portal where people are listed? Oh, there is one? a list, but certainly we have a venue for individuals who are aware of complaints or aware of allegations against uh federal employees who may be continuing to receive FECA, as well as in medical provider fraud.
▶ 1:10:24Not only do we Labor OIG operate our own hotline where individuals can report these matters to, I understand that all OIGs have similar hotlines where they can be uh reported to. So, absolutely, there is a venue for individuals to bring these matters to our attention. Okay, that's fantastic. Thank you. And Ms. Hall, the U.S. Postal Service has an annual operating revenue of 78 billion and over a half a million career employees.
▶ 1:10:51In my home state of Illinois, a 2021 investigative report showed that the USPS in Chicago has four of the worst performing offices with that report showing 62,000 mail items were delayed over several The Inspector General report also found that rates of improper scanning and handling of hundreds of packages were as high as 50%.
▶ 1:11:18What is being done to address these deficiencies in the Chicago USPS Yeah, great question. Uh Chicago has been a challenging area for the Postal Service for for a very long time. We uh issued the report that you're speaking of and made recommendations to the Postal Service to address some of the causes of the problems that we saw. Um I don't know the status of those recommendations right now, but we can get we can get the status and get and get back to you on it.
▶ 1:11:45But we're continuing to do work around the country and in Chicago looking at service issues in particular because there have Clearly, there are some hotspots around the country where service is Well, thank you, and we'd be very Thank you. And I yield back. Appreciate that. Next, we will go to Mr. Courtney from Connecticut. Thank you, Mr. Chairman. Thank you for the the waiver and to the ranking member for the waiver that allows me to participate today.
▶ 1:12:15Again, just as the lead co-sponsor on the Democratic side for HR 3170, just wanted to just foot stomp a couple points that were made by Mr. Renfroe and Ms. Omar who raised this issue earlier in her questioning. This is a bill which has been introduced a number of times. It actually goes back to 2011.
▶ 1:12:35It recognizes that direct access to nurse practitioners and physician assistants is widely sort of embraced now in the healthcare system both at the state level and the federal level. The Medicare system has allowed direct billing by nurse practitioners and PAs for almost a decade Uh at this point and again it if anything it again has provided patients with access in a very stressed time in terms of physician shortages.
▶ 1:13:05The American College of Medical um colleges and universities reports that we're going to have a physician shortage of about 86,000 at the rates we're going right now in terms of retirements and you know the inadequate replacement. So the the issue of physician access in terms of just a global system is if anything going to worsen if we don't sort of provide other options and again Mr.
▶ 1:13:31Renfro your your testimony again I think powerfully demonstrated what the the need is particularly in rural parts of the country. Mr. Chairman I ask unanimous consent to enter into the record letter of support from the American Association of Nurse Practitioners for HR 3170 as well as a letter in support of the legislation from the Workers Injury Law and Advocacy Group. Without objection. Thank you Mr. Chairman and in my remaining time Mr.
▶ 1:13:59Renfro you heard Miss Hall testify in favor of um basically overriding employees right to seek their own health care provider and take doctors that are on a list provided by the postal service. What what is the letter carriers position on that type of uh possible change?
▶ 1:14:20Yeah we would be very much opposed to modifying the current ability of federal employees that are injured right to seek their own provider that that treats injured federal employees. I think you highlighted very well the need to expand those treatment options. I would also just like to comment on a couple of other points that were raised in in the OIG report.
▶ 1:14:44Um The recommendations regarding lump sum payments as opposed to continuing benefits, the the the there's an issue raised about um requiring those that are injured to begin taking an OPM annuity at age 65. Um we are very staunchly opposed to those type of reforms.
▶ 1:15:08Um as I mentioned earlier, the the most pressing issue is access to care and this legislation um would go a long way towards addressing that. I I will note one piece that I think is important that was recommended um in the OIG's report and that is to maximize the usage of prescription drugs. Um we are in full support of that as that's also become, you know, a trend sort of across uh across the healthcare industry.
▶ 1:15:36And and again, the OIG's office has done really impressive work in terms of identifying waste, fraud, and abuse, which um you know, Ms. Hall's briefed the staff here and kudos um again to to OIG. The letter carriers completely support all efforts, right, to to crack down on waste, fraud, and abuse in the We 100% support efforts to crack down on waste, fraud, and abuse because the the impact of um expenses that are eventually passed on to the Postal Service
▶ 1:16:07um is very much as it was described earlier, potentially um could result in benefits not being paid to someone who is entitled to them under the law. I I think it's important for me to mention, my union has invested very heavily in representing our employees that are injured. And and one of the primary reasons, beyond of course ensuring that they receive their benefits, is to make the process as efficient as we possibly can.
▶ 1:16:33We've also engaged directly through beginning with the Obama administration, the first Trump administration, the Biden administration, now with the second Trump administration, with OWCP to improve and modernize processes to offer them the perspective of the individual that's filing the claim, and we've made a lot of progress as was mentioned earlier in recent years with OWCP, and we really believe that we can continue to do that.
▶ 1:16:58But, it's important to us that benefits are paid efficiently to those who are entitled to them under the law, but we certainly are supportive of efforts to eliminate fraud, to eliminate waste, to eliminate abuse of the program so long as it does not result in I think we have to be careful that we do not impact those that do are entitled to those benefits and ensure they receive them. But, yes, sir, we would 100% support any of those Great. Thank you, Mr. Chair. Yield back.
▶ 1:17:27Thank you. And seeing no further questions, we will conclude the interviewing and questioning of witnesses, and now we will move to closing remarks. And at this time, I would like to recognize the ranking member for her closing remarks. Thank you, Chairman, and thank you once again to our witnesses for speaking with us today. Today's hearing has reaffirmed a simple but powerful truth.
▶ 1:17:57The Federal Employees Compensation Act is not just a program, it is a promise. A promise to federal workers who deliver our mail, guard our transportation system, inspect our food, and respond in times of crises. These workers are not statistics or budget items. They are people who make our government function, and when they are injured or fall sick through their work, they deserve a system that works for them, not against them.
▶ 1:18:24We have heard important testimony today about FECA's strengths, but we've also heard about its shortcomings. Outdated procedures, delays in care, and burdensome claim process. These are solvable problems, and as we have seen before, bipartisan cooperation can deliver meaningful, lasting reforms. But let's be clear, any reform must keep one question front and center. How does this help workers and their families?
▶ 1:18:53We cannot lose sight of that. This means not only supporting workers after injury, but also preventing injuries and death in the first place. Investment in workplace safety, like training, protective gear, and common-sense protections, such as the proposed OSHA heat stress rule, are both morally right and fiscally savvy.
▶ 1:19:17Fewer injuries and illnesses mean fewer claims, lower costs, and a stronger and more resilient system for everyone. What we cannot do is follow the course of workers' compensation changes in the states which have cut benefits to the bone and pushed workers into poverty.
▶ 1:19:36I ask unanimous consent to enter into the record a policy position from the American Public Health Association entitled The Critical Need to Reform Workers' Compensation, which lays out the problems of state systems that we must avoid if we are committed to prioritizing the health and well-being of workers. Without objection. The story I shared earlier of the injured letter carrier from Minnesota reminds us of what is truly at stake.
▶ 1:20:06His life was upended in an instant, and while he may never work again, FECA ensures that he and his family are not That is what this program is about. That is what this conversation is about. And so let's take today's testimony to heart, and let's build on the bipartisan already underway.
▶ 1:20:26We must ensure that FECA continues to reflect the best of our values of compassion, fairness, and respect for those who serve our country, our constituents every day. Thank you, and I yield back the balance of my time. Thank you to the ranking member, and now I will deliver my closing remarks.
▶ 1:20:44And first of all, I'd just like to thank all the members of the subcommittee for taking part in today's important hearing on FECA, and also to all of our witnesses for sharing their perspectives on how we can actually improve the program as we move forward.
▶ 1:21:01And I think that we have all seen that after the 109-year law having not been updated in the past 50 years that it is long overdue that we make changes that bring us into the realities of the 21st century, closing and cracking down on those issues of waste, fraud, and abuse in the system, but at the same time making sure that we deliver for those injured workers the benefits that they deserve.
▶ 1:21:25And so, as we move forward in this process, I look forward to engaging in a bipartisan fashion with the members of the subcommittee, the members of the full committee, and the outside stakeholders here and others who may be interested. We appreciate all the input that we're gathering here today, but again, I think there is a path forward to do both of those things, crack down on waste, fraud, and abuse, and make sure that we're providing for injured federal workers. So, with that, we will continue our our important work to seek out possible solutions, and look forward to doing that in a bipartisan fashion.
▶ 1:21:56Again, I would like to thank our witnesses for joining us and testifying before the subcommittee today. And without that, there will be no further business, and the subcommittee stands