H.R. 8823 would amend the Federal Employees’ Compensation Act (FECA) so the Secretary of Labor could suspend payments to medical providers who have been convicted of fraud. The bill applies to providers of services, appliances, or supplies paid under FECA, including voucher or certification payments tied to an employing agency’s expenses. It also covers fraud convictions involving FECA itself, any federal health care benefit program, or a similar state program, and it would take effect 180 days after enactment. The Secretary of Labor would have to issue regulations to carry out the new authority.
What This Bill Does
- Adds a new 5 U.S.C. 8103(c) allowing Labor to suspend payments to convicted providers.
- Covers fraud convictions tied to FECA, federal health care benefit programs, or similar state programs.
- Applies to payments made on or after 180 days after enactment.
- Requires the Secretary of Labor to issue implementing regulations.
Who This Bill Affects
If you are a federal employee receiving FECA-covered medical care, this bill would not change your eligibility for benefits, but it could affect which doctors, vendors, or suppliers the Department of Labor will continue paying if they have a fraud conviction. If you are a provider serving FECA claimants, it creates a new risk of suspended payments once the Secretary of Labor’s regulations are in place, beginning 180 days after enactment. For most other people, the effect is indirect: the bill is mainly about how the federal workers’ compensation program polices fraud.
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- Federal taxpayers and program integrity advocates They would say the bill gives Labor a clear tool to stop paying providers who have already been convicted of fraud, helping protect public funds and discourage abuse of the FECA system.
- Injured federal workers who rely on honest providers They may support stronger screening because it can reduce the chance that fraudulent billing or unsafe providers distort care in a program designed to help injured employees.
- Employers and administrators in the federal workers’ compensation system They may see value in a clearer enforcement mechanism that can remove bad actors and reduce downstream administrative and financial harm.
- Medical providers concerned about due process and administrative reach They may worry the suspension authority is too broad or could be applied too aggressively, especially if regulations create uncertainty about how a conviction translates into payment stoppage.
- Providers with mixed-state or multi-program billing exposure Because the bill reaches convictions under federal and state programs, some providers may fear collateral consequences beyond the specific conduct at issue.
- Patient advocates worried about access to care They may argue that cutting off payments could make some providers unwilling to treat FECA patients or could disrupt continuity of care if Labor’s rules are slow or uneven.
Key Implications
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““The Secretary of Labor may suspend payments to a provider””
This creates new enforcement authority inside FECA. The practical effect is that providers with fraud convictions can be cut off from federal compensation payments, which may deter fraudulent billing but also increases the importance of clear rules and review procedures.
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““if the provider has been convicted of fraud””
The trigger is a criminal conviction, not mere suspicion. That means the bill targets providers with established fraud findings rather than allegations alone.
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““with respect to this subchapter; any Federal health care benefit program; or any State program””
The reach is broader than FECA alone. A provider convicted in another public health-related program can still lose FECA-related payments, linking conduct across systems.
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““The amendments made by this Act shall apply… 180 days after the date of enactment””
The delay gives agencies time to write regulations and update payment systems before the new authority starts affecting providers and claims.
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““The Secretary shall promulgate regulations””
Implementation is not automatic; Labor must issue rules. Those rules will likely determine how convictions are identified, how payment suspensions are processed, and how disputes are handled.
Official Source & Bill Facts
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- Bill
- HR 8823
- Congress
- 119th Congress
- Official title
- Putting Patients First by Strengthening Provider Accountability in FECA Act
- Policy area
- Labor & Employment
- Latest action
- Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 0. (June 25, 2026)
- Last updated
- June 26, 2026
Latest Status
June 25, 2026
Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 0.
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