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Office of Workers' Compensation Programs
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Division of Federal Employees' Compensation (DFEC)

Additional Information on Compounded Drug Medications

OWCP's Division of Federal Employees' Compensation (DFEC) has implemented a new prior authorization policy for processing requests for compounded drug medications for claimants under the Federal Employees' Compensation Act (FECA) Program. As noted in previous guidance issued on September 12, 2016, A Letter of Medical Necessity (also referred to as LMN or Form CA-26) must be fully completed by an injured workers' treating physician prior to authorization of any compounded medication by DFEC. Incomplete CA-26s will be returned to the provider without further processing. Authorizations for compounded drug prescriptions will be limited to a maximum of 90 days, with initial fills and refills to be issued in 30-day supplies.

The Letter of Medical Necessity (LMN/Form CA-26) is accessible to OWCP registered providers on the OWCP Web Bill Processing Portal and must be completed by the treating physician and submitted electronically. Instructions on how to submit the LMN are available on the Latest Developments section of the Xerox/ACS website.

Additionally, DFEC recently issued FECA Bulletin No. 17-01, which provides further information on the new policy.

We encourage stakeholders to continue to visit our website and the OWCP Web Bill Processing Portal and/or register on the available portals to receive emails on periodic policy updates.

October 19, 2016