2015 FECA Circulars Archive

Attention: This circular has been superseded and is inactive.

SUBJECT: Outpatient Prospective Payment System

Applicability: Appropriate National Office and District Office personnel.

Reference: Federal Employee's Compensation Act (FECA) Procedure Manual and 5 USC 8103; 20 C.F.R. Part 10.

5 U.S.C. 8103 provides that an injured employee is entitled to receive medical services, appliances or supplies which a qualified physician prescribes or recommends and which OWCP considers necessary to treat the work-related injury. This section further provides that an employee may be furnished necessary and reasonable transportation and expenses incident to the securing of such services, appliances and supplies when authorized. This Circular describes the FECA program's adoption of an Outpatient Prospective Payment System (OPPS).

On August 28, 2011, the final rule updating the regulations implementing the FECA took effect after notice and comment. Changes made to 20 C.F.R. § 10.801(c)(1)(ii) gave the Office of Workers' Compensation Programs (OWCP) the authority to adopt an OPPS being developed by the Center for Medicare and Medicaid Services (CMS).

Now that the OPPS has been implemented by CMS, OWCP now exercises its authority in accordance with these regulations and is implementing an OPPS as described below, effective October 1, 2014 as follows:

(a) OWCP will pay for hospital outpatient medical services according to Ambulatory Payment Classifications (APC) based on the OPPS devised by CMS (42 CFR parts 412, 419, 424, 485 and 489). Under this system, CMS assigns individual services [Healthcare Common Procedure Coding System (HCPCS) codes] to APCs based on similar clinical characteristics and similar costs. Using this system, payment is derived by multiplying the labor portion of the national unadjusted payment rate for the APC weight by the hospital wage index.

(b) Hospital outpatient services will be classified according to the APC prescribed by the CMS for that service in the form of the OPPS Grouper software program. Each payment is derived by multiplying the prospectively established scaled relative weight for the service's clinical APC by a conversion factor (CF) to arrive at a national unadjusted payment rate for the APC. The labor portion of the national unadjusted payment rate (60%) is further adjusted by the hospital wage index for the area where payment is being made.

(c) If a payable service has no assigned APC, the payment will be derived from the OWCP fee schedule.

OWCP will review the pre-determined outpatient hospital rates at least once a year, and may adjust any or all components when OWCP deems it necessary or appropriate.

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

Distribution: DFEC Staff

Back to Top of FECA Circular No. 15-01

Back to Table of Contents

Attention: This circular has been superseded and is inactive.

SUBJECT: SSA Contacts for FERS Dual Benefits

Reference is made to FECA Bulletin 97-9, where the procedures for computing FERS Dual Benefits are outlined. Action item 3 indicates that the National Office will provide updated points of contact of the individuals from the SSA who are responsible for performing the necessary computations for OWCP.

These computations are currently assigned to a number of modules based on the last 2 digits of the SSN as follows:

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

Distribution: All Claims Staff and Fiscal Personnel

Back to Top of FECA Circular No. 15-02

Back to Table of Contents

Attention: This circular has been superseded and is inactive.

SUBJECT: Dual Benefits - FERS Cost of Living Adjustments

Effective December 1, 2014, benefits issued by the Social Security Administration (SSA) will be increased by 1.7%. This requires the amount of the Federal Employees' Retirement System (FERS) Dual Benefits deduction to be increased by the same amount, to ensure the dollar-for-dollar offset remains current.

This adjustment will be made from the National Office for all cases that were correctly entered into the iFECS Compensation program. The adjustment will be effective with the periodic roll cycle beginning December 14, 2014. There will be no adjustment or overpayment declared for the period of December 1, 2014 through December 13, 2014.

The historical SSA cost of living adjustments are as follows:

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

Distribution: List No. 1 – FolioViews Groups A, B and D (Claims Examiners, All Supervisors, District Medical Advisors, Systems Managers, Technical Assistants, Rehabilitation Specialists, Staff Nurses and Fiscal Personnel)

Back to Top of FECA Circular No. 15-03

Back to Table of Contents

Attention: This circular has been superseded and is inactive.

SUBJECT: Current Interest Rates for Prompt Payment Bills and Debt Collection

The interest rate to be assessed for the prompt payment bills is 2.125 percent for the period of January 1, 2015 through December 31, 2015. This new rate has been updated in the Central Bill Payment system tables.

The rate for assessing interest charges on debts due the government remains unchanged again this year. The interest rate for assessing interest charges on debts due the government is 1.0 percent for the period of January 1, 2015 through December 31, 2015. This new rate has been updated in the iFECS system tables.

Ordinarily, the rate of interest charged on debts due the U.S. Government is only changed in January, and is effective for the entire year. However, the rate may be changed in July if there is a difference in the Current Value of Funds (CVF) interest rate of more than two percent. The rate will be reviewed on July 1, 2015 to determine if the Treasury has changed the rate.

Attached to this Circular is an updated listing of both the Prompt Payment and Debt Management interest rates from January 1, 1985 through the current date.

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

Distribution: List No. 2--Folioviews Groups A, B, and D (Claims Examiners, All Supervisors, District Medical Advisors, Technical Assistants, Rehabilitation Specialists, Staff Nurses and Fiscal Personnel)

ATTACHMENT TO FECA CIRCULAR NO. 15 – 04

ATTACHMENT TO FECA CIRCULAR NO. 15 - 04

Back to Top of FECA Circular No. 15-04

Back to Table of Contents

Attention: This circular has been superseded and is inactive.

SUBJECT: Reimbursement Rates Payable for the Use of Privately Owned Automobiles Necessary to Secure Medical Examination and Treatment.

Effective January 1, 2015, GSA increased the mileage rate for reimbursement to Federal employees traveling by privately-owned automobile to 57.5 cents per mile. As in the past, the determination has been made to apply the applicable rate to FECA beneficiaries traveling to secure necessary medical examination and treatment.

The Central Bill Pay (CBP) facility has updated their system to reflect the new rates. Since there is no action required at the District Office level, the rates are being provided for informational purposes only.

Attached to this Circular is an updated listing of mileage reimbursement rates from January 1, 1995 through the current date.

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

Attachment: Private Automobile Mileage Reimbursement Rates

Distribution: List No. 2 - Folioviews Groups A and D (Claims Examiners, All Supervisors, District Medical Advisors, Technical Assistants, Rehabilitation Specialists, and Fiscal Personnel).

ATTACHMENT TO FECA CIRCULAR NO. 15 – 05

Back to Top of FECA Circular No. 15-05

Back to Table of Contents

Attention: This circular has been superseded and is inactive.

SUBJECT: Labor for America (LFA)

PURPOSE: To announce the Office of Workers' Compensation Programs' (OWCP) web-based Labor for America (LFA) Program.

LFA is the Office of Workers' Compensation Programs' (OWCP) new web-based recruitment resource that allows public and private sector employers nationwide to search for, and connect with, vocationally rehabilitated injured workers who are currently in receipt of wage loss compensation in accordance with the Federal Employees' Compensation Act (FECA). While workers with acquired disabilities may no longer be able to perform their previous Federal jobs, many have significant transferrable work experience and have maintained/developed skills which qualify them for alternate positions with other employers. OWCP is committed to assisting these employees in returning to the workforce. Federal hiring will support Executive Order 13548 aimed at increasing disability hiring and increasing the return-to-work rate of federal employees who suffer from work-related injury or illness. [Exec. Order No. 13548, 75 Fed. Reg. 45039 (July 26, 2010)]. Federal employers may also use Schedule A hiring authority for this program. State, local and private sector employers may be eligible for an Assisted Reemployment salary reimbursement subsidy for up to three years.

Aims and Intended Use

1. LFA serves to connect employers with injured workers engaged in the placement phase of the vocational rehabilitation process. The website provides interested employers with the ability to view and search the profiles of injured workers who are ready to return to employment. This free candidate database is a recruitment resource for public and private sector employers nationwide seeking to recruit, hire and retain skilled workers who have employment histories with the Federal government, but are unable to return to their prior positions because of workplace injury or illness. LFA showcases hiring incentives to employers and provides support to all parties during the recruitment, hire and transition to work.

2. ASSISTED REEMPLOYMENT (AR) is a hiring incentive program which began in 1991. See FECA Bulletin 92-08 (Return to Work/Reemployment: Assisted Reemployment), issued on December 17, 1991. AR's goal is to increase the number of disabled employees who could successfully return to the labor force even though they could not be placed with their former employer. AR is now a staple of the FECA program used to assist injured workers with a return to gainful employment.¹ OWCP has authority to use the FECA fund to pay a portion of the salary of a newly reemployed Federal worker (who is eligible for disability benefits under the FECA) via AR. Additional information regarding AR can be found in FECA PM 8-0800.

3. ROLE OF FECA VOCATIONAL REHABILITATION: During the vocational rehabilitation placement process, Vocational Rehabilitation Counselors (VRCs) will assist injured workers in developing resumes/professional profiles to use during their job searches. Injured workers may be advised of the opportunity to include their professional profiles on LFA. With the injured worker's agreement, the VRC will enter this information onto the LFA website as a Job Seeker profile. The Division of Federal Employees' Compensation (DFEC) Vocational Rehabilitation Specialist (VRS) reviews and approves the uploading of these Job Seeker profiles, at which time they become visible to prospective employers. Job Seeker profiles will remain active on the LFA website for the duration of the DFEC's vocational rehabilitation placement phase provided that the injured worker is fully cooperative with the vocational rehabilitation effort(s) during that period. If a candidate is placed, the VRC will, with the consent of the candidate, provide follow-up services to both the injured worker and the employer for at least 60 days of employment, to assist with any necessary accommodations including assistive technology and in recognition that this initial period is one of readjustment and/or transition for both.

4. THE LFA PROGRAM IS VOLUNTARY: The penalty provisions of 5 U.S.C. 8113(b) will not apply for refusal to participate in LFA. As a result, Job Seeker profiles may be deleted at the injured worker's request.

5. EMPLOYERS: Prospective employers can search the LFA database for qualified Job Seekers by general job category, geographic area or using key words. Employers will also have the ability to calculate the estimated AR subsidy. The AR subsidy calculator on the LFA website is used to make an approximate calculation of the reimbursement to the employer specific to the candidate of interest.

Note: Due to the provisions of the Privacy Act of 1974, a Job Seeker profile on LFA will not include the candidate's name or other Personally Identifiable Information (PII), but will include all pertinent information about the injured worker's work history, education, skills and experience. The Job Seeker's name and contact information will not be provided to interested employers without the injured worker's express consent.

a. Registered Employers: In addition to all of the tools available to non-registered users, registered users will have access to additional tools which include the ability to save search criteria, to save specific Job Seeker profiles for future reference (these profiles will remain available only as long as the injured employee is active on LFA), and to make contact with VRCs regarding potential job candidates.

b. Connecting with OWCP: When an employer is interested in a profile, they use LFA to send a message to the assigned VRC. The VRC will then make initial contact with the employer to learn about the job opportunity, determine whether the job's duties are compatible with that injured worker's rehabilitation goals and work tolerance limitations and subsequently facilitate direct contact between the injured worker and the employer, if appropriate.

c. Non-Registered Employers: Non-registered users can search LFA for Job Seeker profiles to obtain information about the Job Seeker's work history, experience and skills. Non-registered users can also calculate the approximate AR subsidy and/or download a PDF of the Job Seeker profile.

6. TRAINING AND ASSISTANCE: Training modules and videos for the various LFA functions are available on the LFA website. These include specific instructions for non-registered employers on how to search for Job Seekers and on how to use the AR subsidy calculator. For registered employers, the training modules include how to register; how to change account settings; and how to search for Job Seekers, save profiles and use expanded LFA tools as a registered employer. These training modules are available on the LFA website to any user/employer, whether registered or non-registered with LFA.

DOUGLAS C. FITZGERALD
Director for
Federal Employees' Compensation

¹ Appropriations language for the Department of Labor provides "Provided, that amounts appropriated may be used under 5 U.S.C. 8104 by the Secretary to reimburse an employer, who is not the employer at the time of injury, for portions of the salary of a re-employed, disabled beneficiary..."

Distribution: All DFEC Staff, Vocational Rehabilitation Counselors

Back to Top of FECA Circular No. 15-06

Back to Table of Contents