Office of Workers’ 

Compensation Programs 

Division of Federal Employees’ 

Compensation Interagency 

Meeting

September 12, 2017
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Gary A. Steinberg

Deputy Director,

Office of Workers’ 

Compensation Programs
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

 Welcome & Opening Remarks, Gary A. Steinberg

 New Business & General Updates , Antonio A. Rios

 Program Integrity, Jennifer Valdivieso

 Additional Program Updates & Reminders, Tara Jones

Agenda
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Antonio A. Rios

Director,

Division of Federal 

Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Prescription Management Policies: 

• Compounded Drugs

• Opioid Control

• New Bill Processing Contract

• Pharmacy Benefit Manager (PBM)
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Prescription Management – Compounded Drugs

– 2012 Changes Allow Pharmacies to Charge for every 

ingredient vs most expensive ingredient 

– Costs for Compounds increased from

• $ 2M in FY 2011

• $214M in FY15 

– 2016 Changes

• July: 2-Tiered Reimbursement Approach

– 3 or Less Ingredients = 50% of AWP 

– 4 or More Ingredients = 30% of AWP
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Prescription Management – Compounded Drugs

– 2016 Changes (Continued)

– October: Compounded Drugs without Opioids Require Prior 

Authorization

– Letter of Medical Necessity (LMN) must be submitted by Physician 

and approved by OWCP before authorization is provided.
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – Compounded Drug Spend
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – Compounded Drug Scripts
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – LMN Approvals/Denials 

(Compounded Drug – Non Opioid)

CA-26 LMNs 

Denied

CA-26 LMNs 

Approved
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – Compounded Opioid Spend

(June 26, 2017)
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – Compounded Opioid Scripts
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Policy Effects – LMN Approvals/Denials 

(Compounded Drug – With Opioids)

CA-27 LMNs 

Denied

CA-27 LMNs 

Approved
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Overall Opioid Spend Patterns

Opioids: Spend isn’t the 

driver affecting policy
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Prescription Management –

August 27, 2017 - Opioid New Entrants

– 19,000 New Scripts Annually to New Entrants

– New Entrant = No Opioids in Prior 180 Days

– 60-Day Grace Period for 1st Fill – All New Entrants

– 2 Opioids Max 

– LMN Required at Day 60

– LMN Required Every 60 Days
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Prescription Management (Next Steps)

– Next Phase for Opioid Controls

– Finalize Requirements for Pharmacy Benefit 

Manager (PBM) Solicitation

– Implement New Bill Payment Vendor
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Program Integrity & Fraud

• New Procedures

• New Access to OIG Agents via ECOMP

• Anti-Fraud Conference

• Increased Cooperation with IG
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Priorities

Collaborative Case Management

• Team Effort – 3 Parties to the Claims

• Leveraging ICS Resources and Working as a Team 

• Technological Changes to Enhance Electronic 

Interactions 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Jennifer Valdivieso

Deputy Director,

Program and System Integrity

Division of Federal 

Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Integrity - Mission and Focus 

To use data analytics and data science to: 

1. Identify anomalous or unusual payment 

activity/patterns to detect and prevent 

fraud in the FECA program; 

2. Develop effective solutions to mitigate risks; 

and

3. Identify process improvement alternatives 

and potential avenues for cost savings. 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Program Integrity Reviews Performed:

1) Total compensation and medical benefits 

2) Discrete components of each 

– Disability, Wage Earning Capacity, Death

– Hospital, Physician, PT, Pharmacy 

3) Medical Detail

– Providers, Procedure Codes and NDCs
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

FECA CIRCULAR NO. 17-03 

Office of Inspector General (OIG) Investigations Pertaining to 

Federal Employees’ Compensation Act (FECA) Claimant and 

Medical Provider Fraud 

FECA BULLETIN NO. 17–04

Investigations related to Federal Employees’ Compensation Act 

(FECA) Claimant Fraud

FECA BULLETIN NO. 17-05

Investigations related to Federal Employees’ Compensation Act 

(FECA) Medical Fraud

Available at https://www.dol.gov/owcp/dfec/
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Provider Fraud – FY17

Referrals to DOL OIG 

• 26 (includes 40+ providers)

Requests for Data and Documentation 

• 232 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Claimant Fraud – FY17

Requests for Case File Documentation

• 550+ (primarily case file copies) 

Investigative Memoranda 

• 94 Received

• 76 Closed (includes pre FY17)
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Tara N. Jones

Chief, 

Branch of Technical Assistance

Division of Federal 

Employees’ Compensation
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Trends: 

• Continued increases with Timely Filing 

• Decline in Return to Work performance

Notes: 

• Removal of color indicators 

• Time lag reports available in ECOMP

FY2017 Agency Performance - (Through 3rd Q)
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Restoration of CQS

• OWCPConnect

• Secure access through identity verification

• For claimant use only – unique User ID

• Replaces prior access method to CQS

– NFC users may continue to use NFC

– Agencies must obtain AQS access to view CQS

info
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

OWCPConnect - www.owcpconnect.dol.gov
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

OWCPConnect – Account Registration
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

OWCPConnect – Account Registration
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

OWCPConnect – Accessing CQS
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

ECOMP/Web-Enabled Electronic Document 

Submission (WEEDS) Enhancements 

New Drop-Down Menu for Document Upload: 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

ECOMP/Web-Enabled Electronic Document 

Submission (WEEDS) Enhancements 

• Case Copy/Document Request

• Request for Authorization

• EFT (Direct Deposit) Form

• Designation of Representative

• Address Change

• Attorney Fee Request

• Employer’s Claim Challenge

• Bill Payment Issue

• Compensation Question

• Election (FECA/OPM/VA/FERS Offset)

Coming Soon! 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Disability Management Interface (DMI)

What is Disability Management Interface (DMI)? 
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Disability Management Interface (DMI)

• ECOMP Feature – for agency ECOMP users only

• Allows employing agency users to share specific 

information related to cases involving 

– wage- loss

– pending job offers

– absence of medical evidence

• This info can be directly imported into 

correspondence authored by OWCP staff
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Sample DMI menu for ECOMP Agency Reviewers
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Sample DMI Generated Job Offer Refusal Notification
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Sample CE Automated Response Using DMI Info 

(Claimant Letter)
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Disability Management Interface (DMI)

• Resource with significant leverage

• Mandatory Training

• Monitoring Usage

• Enhanced Communication

• Partnering on Case Management Actions
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Handling Congressional and Media Inquiries

Refer inquiries to your organization’s: 

• Office of Congressional and Intergovernmental Affairs 

• Office of Public Affairs

Notify DFEC of any OWCP related issues

Coordination is key

Remember DOL/GOVT-1 and Privacy Act Rules
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

IT Updates – Point of Contact Refresh

Updated POC info needed from Federal Agency Partners:

– AQS Intra-Agency Coordinator (IAC)

– ECOMP Agency Maintenance Users (AMU)

– Data Recipient – chargeback and data extracts

Send to: Dataworkgroup@dol.gov

Due by September 29, 2017
U.S. Department of Labor

Office of Workers’ Compensation Programs 

Division of Federal Employees’ Compensation

Stakeholder Portals and Email Subscriptions

DFEC Home Page: www.dol.gov/owcp/dfec