Focus on Workers’ Compensation
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Postal Service employees who are injured on the job or have a work-related illness can receive medical care and compensation for lost wages under the Federal Employees’ Compensation Act through a program run by the Department of Labor. The Postal Service spends more than $1.5 billion each year to reimburse workers’ compensation claims and administrative costs under this program. We conduct work related to workers’ compensation in several areas.
Containing Costs
While the Postal Service makes an effort to control workers’ compensation costs, it is limited by law from adopting some of the best practices used by the private sector and state governments. We found that costs per workhour are substantially higher for USPS than for private industry, and the gap is growing.
Reviewing Safety and Health Practices
We recommended improvements to training and awareness on issues such as heat safety, first-aid, lifting heavy packages, and drug abuse. We also proposed better monitoring of opioids prescribed through the workers’ compensation program.
Investigating Fraud
Our special agents investigate doctors, pharmacies, and other providers who fraudulently bill the workers’ compensation program. Our investigations have uncovered crimes such as charging for unnecessary services, double billing, and giving kickbacks for referrals. We also investigate employees who file false workers’ compensation claims or fail to report outside employment while receiving benefits.
Identifying Opportunities for Policy Changes
In our investigative and audit work, we frequently identify vulnerabilities in the workers’ compensation program and opportunities for improvement. For example, we examined the growth of compounded drug costs and reviewed best practices implemented by other federal, state, and private sector payers. The Department of Labor later adopted new guidelines, requiring prior authorization.
