This bill explicitly authorizes the Department of Labor to suspend payments under the federal workers’ compensation program to certain providers convicted of fraud. (Current regulations establish various grounds for excluding a provider from payment under the program, including a conviction for fraudulent activity in connection with a federal or state medical benefit program.)
Under the bill, Labor may suspend payments to a provider convicted of fraud related to the federal workers’ compensation program, a similar state program, or a federal health care benefit program (e.g., Medicare). Specifically, Labor may suspend (1) payments to such a provider for services, appliances, or supplies covered under the program; or (2) payments for certain initial expenses incurred by an employing agency with respect to such a provider.
Labor must issue regulations to carry out these provisions.