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Witnesses and members spar over outsourcing, managed care, and use of AI in federal workers' compensation
Summary
Witnesses called for improvements to FECA-era programs, Ohio officials described measurable gains from managed care and AI, and a heated exchange focused on contractor Sedgwick's past state penalties and the accountability of private vendors.
A House Education and Labor subcommittee hearing on the Department of Labor's Office of Workers' Compensation Programs featured bipartisan testimony about modernizing federal workers' compensation and a pointed exchange about private contractors' accountability.
Christopher Godfrey, director of research at the Workers' Injury Law and Advocacy Group, warned that "replacing accountable federal employees with private vendors does not reduce costs. It reduces accountability," arguing that outsourcing can create administrative barriers…
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