[Comments on Reductions in Labor's Payments to a Physician Providing Services Under FECA]

In response to a congressional request, GAO commented on reduced payments that the Department of Labor made to a physician for medical services he furnished to recipients of federal employee compensation benefits under the Federal Employees' Compensation Act (FECA) prior to enactment of the Balanced Budget and Emergency Deficit Control Act. GAO found that: (1) all government programs were subject to reduction unless exempted, but the Act's exemptions did not cover medical benefits under FECA; and (2) the terms of the medical provider's agreement with Labor limited the provider's right to receive payments for services provided under FECA, since a clause stated that the medical provider agreed to accept the government's charge determination on covered services as payment-in-full.