2000
[DOCID: f:h18ih.txt]
107th CONGRESS
1st Session
H. R. 18
To amend title XVIII of the Social Security Act to establish additional
provisions to combat waste, fraud, and abuse within the Medicare
Program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2001
Mrs. Biggert introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Energy and Commerce, and the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title XVIII of the Social Security Act to establish additional
provisions to combat waste, fraud, and abuse within the Medicare
Program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Medicare Fraud
Prevention and Enforcement Act of 2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Site inspections and background checks.
Sec. 3. Registration of billing agencies.
Sec. 4. Expanded access to the health integrity protection database
(HIPDB).
Sec. 5. Liability of medicare carriers and fiscal intermediaries for
claims submitted by excluded providers.
Sec. 6. Community mental health centers.
Sec. 7. Limiting the use of discharge in bankruptcy proceedings for
provider liability for health care fraud.
Sec. 8. Illegal distribution of a medicare or medicaid beneficiary
identification or provider number.
Sec. 9. Treatment of certain Social Security Act crimes as Federal
health care offenses.
Sec. 10. Authority of Office of Inspector General of the Department of
Health and Human Services.
Sec. 11. Universal product numbers on claims forms for reimbursement
under the medicare program.
SEC. 2. SITE INSPECTIONS AND BACKGROUND CHECKS.
(a) Site Inspections for DME Suppliers, Community Mental Health
Centers, and Other Provider Groups.--Title XVIII of the Social Security
Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the
following:
``site inspections for dme suppliers, community mental health centers,
and other provider groups
``Sec. 1897. (a) Site Inspections.--
``(1) In general.--The Secretary shall conduct a site
inspection for each applicable provider (as defined in
paragraph (2)) that applies for a provider number in order to
provide items or services under this title. Such site
inspection shall be in addition to any other site inspection
that the Secretary would otherwise conduct with regard to an
applicable provider.
``(2) Applicable provider defined.--
``(A) In general.--Except as provided in
subparagraph (B), in this section the term `applicable
provider' means--
``(i) a supplier of durable medical
equipment (including items described in section
1834(a)(13));
``(ii) a supplier of prosthetics,
orthotics, or supplies (including items
described in paragraphs (8) and (9) of section
1861(s));
``(iii) a community mental health center;
or
``(iv) any other provider group, as
determined by the Secretary.
``(B) Exception.--In this section, the term
`applicable provider' does not include--
``(i) a physician that provides durable
medical equipment (as described in subparagraph
(A)(i)) or prosthetics, orthotics, or supplies
(as described in subparagraph (A)(ii)) to an
individual as incident to an office visit by
such individual; or
``(ii) a hospital that provides durable
medical equipment (as described in subparagraph
(A)(i)) or prosthetics, orthotics, or supplies
(as described in subparagraph (A)(ii)) to an
individual as incident to an emergency room
visit by such individual.
``(b) Standards and Requirements.--In conducting the site
inspection pursuant to subsection (a), the Secretary shall ensure that
the site being inspected is in full compliance with all the conditions
and standards of participation and requirements for obtaining medicare
billing privileges under this title.
``(c) Time.--The Secretary shall conduct the site inspection for an
applicable provider prior to the issuance of a provider number to such
provider.
``(d) Timely Review.--The Secretary shall provide for procedures to
ensure that the site inspection required under this section does not
unreasonably delay the issuance of a provider number to an applicable
provider.''.
(b) Background Checks.--Title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) (as amended by subsection (a)) is amended by
adding at the end the following:
``background checks
``Sec. 1898. (a) Background Check Required.--Except as provided in
subsection (b), the Secretary shall conduct a background check on any
individual or entity that applies to the Secretary for a provider
number for the purpose of furnishing any item or service under
this title. In performing the background check, the Secretary shall--
``(1) conduct the background check before issuing a
provider number to an individual or entity;
``(2) include a search of criminal records in the
background check; and
``(3) provide for procedures that ensure the background
check does not unreasonably delay the issuance of a provider
number to an eligible individual or entity.
``(b) Use of State Licensing Procedure.--The Secretary may use the
results of a State licensing procedure as a background check under
subsection (a) if the State licensing procedure meets the requirements
of subsection (a).
``(c) Attorney General Required To Provide Information.--
``(1) In general.--Upon request of the Secretary, the
Attorney General shall provide the criminal background check
information referred to in subsection (a)(2) to the Secretary.
``(2) Restriction on use of disclosed information.--The
Secretary may only use the information disclosed under
subsection (a) for the purpose of carrying out the Secretary's
responsibilities under this title.
``(d) Refusal To Issue Provider Number.--
``(1) Authority.--In addition to any other remedy available
to the Secretary, the Secretary may refuse to issue a provider
number to an individual or entity if the Secretary determines,
after a background check conducted under this section, that
such individual or entity has a history of acts that indicate
issuance of a provider number to such individual or entity
would be detrimental to the best interests of the program or
program beneficiaries. Such acts may include,
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but are not
limited to--
``(A) any bankruptcy;
``(B) any act resulting in a civil judgment against
such individual or entity; or
``(C) any felony conviction under Federal or State
law.
``(2) Reporting of refusal to issue provider number to the
health integrity protection database (hipdb).--A determination
to refuse to issue a provider number to an individual or entity
as a result of a background check conducted under this section
shall be reported to the health integrity protection database
established under section 1128E in accordance with the
procedures for reporting final adverse actions taken against a
health care provider, supplier, or practitioner under that
section.''.
(c) Regulations; Effective Date.--
(1) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human
Services shall promulgate such regulations as are necessary to
implement the amendments made by subsections (a) and (b).
(2) Effective date.--The amendments made by subsections (a)
and (b) shall apply to applications received by the Secretary
of Health and Human Services on or after January 1, 2002.
(d) Use of Medicare Integrity Program Funds.--The Secretary of
Health and Human Services may use funds appropriated or transferred for
purposes of carrying out the medicare integrity program established
under section 1893 of the Social Security Act (42 U.S.C. 1395ddd) to
carry out the provisions of sections 1897 and 1898 of that Act (as
added by subsections (a) and (b)).
SEC. 3. REGISTRATION OF BILLING AGENCIES.
(a) Registration of Billing Agencies and Individuals.--Title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.) (as amended by
section 2(b)) is amended by adding at the end the following:
``registration of billing agencies and individuals
``Sec. 1899. (a) Registration.--The Secretary shall establish
procedures for the registration of all applicable persons.
``(b) Required Application.--Each applicable person shall submit a
registration application to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary may require.
``(c) Identification Number.--If the Secretary approves an
application submitted under subsection (b), the Secretary shall assign
a unique identification number to the applicable person.
``(d) Requirement.--Every claim for reimbursement under this title
that is compiled and submitted by an applicable person shall contain
the identification number that is assigned to the applicable person
pursuant to subsection (c).
``(e) Timely Review.--The Secretary shall provide for procedures
that ensure the timely consideration and determination regarding
approval of applications under this section.
``(f) Definition of Applicable Person.--In this section, the term
`applicable person' means an individual or an entity that compiles and
submits claims for reimbursement under this title to the Secretary on
behalf of any individual or entity.''.
(b) Permissive Exclusion.--Section 1128(b) of the Social Security
Act (42 U.S.C. 1320a-7(b)) is amended by adding at the end the
following:
``(16) Fraud by applicable person.--An applicable person
(as defined in section 1899(f)) that the Secretary determines
knowingly submitted or caused to be submitted a claim for
reimbursement under title XVIII that the applicable person
knows or should know is false or fraudulent.''.
(c) Regulations; Effective Date.--
(1) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human
Services shall promulgate such regulations as are necessary to
implement the amendment made by subsections (a) and (b).
(2) Effective date.--The amendment made by subsections (a)
and (b) shall take effect on January 1, 2002.
SEC. 4. EXPANDED ACCESS TO THE HEALTH INTEGRITY PROTECTION DATABASE
(HIPDB).
(a) In General.--Section 1128E(d)(1) of the Social Security Act (42
U.S.C. 1320a-7e(d)(1)) is amended to read as follows:
``(1) Availability.--The information in the database
maintained under this section shall be available to--
``(A) Federal and State government agencies and
health plans, and any health care provider, supplier,
or practitioner entering an employment or contractual
relationship with an individual or entity who could
potentially be the subject of a final adverse action,
where the contract involves the furnishing of items or
services reimbursed by 1 or more Federal health care
programs (regardless of whether the individual or
entity is paid by the programs directly, or whether the
items or services are reimbursed directly or indirectly
through the claims of a direct provider); and
``(B) utilization and quality control peer review
organizations and accreditation entities as defined by
the Secretary, including but not limited to
organizations described in part B of this title and in
section 1154(a)(4)(C).''.
(b) Criminal Penalty for Misuse of Information.--Section 1128B(b)
of the Social Security Act (42 U.S.C. 1320a-7b(b)) is amended by adding
at the end the following:
``(4) Whoever knowingly uses information maintained in the health
integrity protection database maintained in accordance with section
1128E for a purpose other than a purpose authorized under that section
shall be imprisoned for not more than 3 years or fined under title 18,
United States Code, or both.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of enactment of this Act.
SEC. 5. LIABILITY OF MEDICARE CARRIERS AND FISCAL INTERMEDIARIES FOR
CLAIMS SUBMITTED BY EXCLUDED PROVIDERS.
(a) Reimbursement to the Secretary for Amounts Paid to Excluded
Providers.--
(1) Requirements for fiscal intermediaries.--
(A) In general.--Section 1816 of the Social
Security Act (42 U.S.C. 1395h) is amended by adding at
the end the following:
``(m) An agreement with an agency or organization under this
section shall require that such agency or organization reimburse the
Secretary for any amounts paid by the agency or organization for a
service under this title which is furnished by an individual or entity
during any period for which the individual or entity is excluded,
pursuant to section 1128, 1128A, or 1156, from participation in the
health care program under this title if the amounts are paid after the
60-day period beginning on the date the Secretary provides notice of
the exclusion to the agency or organization, unless the payment was
made as a result of incorrect information provided by the Secretary or
the individual or entity excluded from participation has concealed or
altered their identity.''.
(B) Conforming amendment.--Section 1816(i) of the
Social Security Act (42 U.S.C. 1395h(i)) is amended by
adding at the end the following:
``(4) Nothing in this subsection shall be construed to prohibit
reimbursement by an agency or organization pursuant to subsection
(m).''.
(2) Requirements for carriers.--Section 1842(b)(3) of the
Social Security Act (42 U.S.C. 1395u(b)(3)) is amended--
(A) by striking ``and'' at the end of subparagraph
(I); and
(B) by inserting after subparagraph (I) the
following:
``(J) will reimburse the Secretary fo
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r any amounts paid by
the carrier for an item or service under this part which is
furnished by an individual or entity during any period for
which the individual or entity is excluded, pursuant to section
1128, 1128A, or 1156, from participation in the health care
program under this title if the amounts are paid after the 60-
day period beginning on the date the Secretary provides notice
of the exclusion to the carrier, unless the payment was made as
a result of incorrect information provided by the Secretary or
the individual or entity excluded from participation has
concealed or altered their identity; and''.
(b) Conforming Repeal of Mandatory Payment Rule.--Section 1862(e)
of the Social Security Act (42 U.S.C. 1395y(e)) is amended--
(1) in paragraph (1)(B), by striking ``and when the
person'' and all that follows through ``person)''; and
(2) by amending paragraph (2) to read as follows:
``(2) No individual or entity may bill (or collect any amount from)
any individual for any item or service for which payment is denied
under paragraph (1). No individual is liable for payment of any amounts
billed for such an item or service in violation of the preceding
sentence.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to claims for payment submitted on or after the date of
enactment of this Act.
(2) Contract modification.--The Secretary of Health and
Human Services shall take such steps as may be necessary to
modify contracts and agreements entered into, renewed, or
extended prior to the date of enactment of this Act to conform
such contracts or agreements to the provisions of this section.
SEC. 6. COMMUNITY MENTAL HEALTH CENTERS.
(a) In General.--Section 1861(ff)(3)(B) of the Social Security Act
(42 U.S.C. 1395x(ff)(3)(B)) is amended by striking ``entity that--''
and all that follows and inserting the following: ``entity that--
``(i) provides the community mental health services
specified in paragraph (1) of section 1913(c) of the Public
Health Service Act;
``(ii) meets applicable certification or licensing
requirements for community mental health centers in the State
in which it is located;
``(iii) provides a significant share of its services to
individuals who are not eligible for benefits under this title;
and
``(iv) meets such additional standards or requirements for
obtaining medicare billing privileges as the Secretary may
specify to ensure--
``(I) the health and safety of beneficiaries
receiving such services; or
``(II) the furnishing of such services in an
effective and efficient manner.''.
(b) Restriction.--Section 1861(ff)(3)(A) of such Act (42 U.S.C.
1395x(ff)(3)(A)) is amended by inserting ``other than in an
individual's home or in an inpatient or residential setting'' before
the period.
(c) Effective Date.--The amendments made by this section shall
apply to items and services furnished after the sixth month that begins
after the date of enactment of this Act.
SEC. 7. LIMITING THE DISCHARGE OF DEBTS IN BANKRUPTCY PROCEEDINGS IN
CASES WHERE A HEALTH CARE PROVIDER OR A SUPPLIER ENGAGES
IN FRAUDULENT ACTIVITY.
(a) In General.--
(1) Civil monetary penalties.--Section 1128A(a) of the
Social Security Act (42 U.S.C. 1320a-7a(a)) is amended by
adding at the end the following: ``Notwithstanding any other
provision of law, amounts made payable under this section are
not dischargeable under section 727, 1141, 1228(a) or (b), or
1328 of title 11, United States Code, or any other provision of
such title.''.
(2) Recovery of overpayment to providers of services under
part a of medicare.--Section 1815(d) of the Social Security Act
(42 U.S.C. 1395g(d)) is amended--
(A) by inserting ``(1)'' after ``(d)''; and
(B) by adding at the end the following:
``(2) Notwithstanding any other provision of law, amounts due to
the Secretary under this section are not dischargeable under section
727, 1141, 1228(a) or (b), or 1328 of title 11, United States Code, or
any other provision of such title if the overpayment was the result of
fraudulent activity, as may be defined by the Secretary.''.
(3) Recovery of overpayment of benefits under part b of
medicare.--Section 1833(j) of the Social Security Act (42
U.S.C. 1395l(j)) is amended--
(A) by inserting ``(1)'' after ``(j)''; and
(B) by adding at the end the following:
``(2) Notwithstanding any other provision of law, amounts due to
the Secretary under this section are not dischargeable under section
727, 1141, 1228(a) or (b), or 1328 of title 11, United States Code, or
any other provision of such title if the overpayment was the result of
fraudulent activity, as may be defined by the Secretary.''.
(4) Collection of past-due obligations arising from breach
of scholarship and loan contract.--Section 1892(a) of the
Social Security Act (42 U.S.C. 1395ccc(a)) is amended by adding
at the end the following:
``(5) Notwithstanding any other provision of law, amounts
due to the Secretary under this section are not dischargeable
under section 727, 1141, 1228(a) or (b), or 1328 of title 11,
United States Code, or any other provision of such title.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to bankruptcy petitions filed after the date of enactment of this
Act.
SEC. 8. ILLEGAL DISTRIBUTION OF A MEDICARE OR MEDICAID BENEFICIARY
IDENTIFICATION OR PROVIDER NUMBER.
Section 1128B(b) of the Social Security Act (42 U.S.C. 1320a-
7b(b)), as amended by section 4(b), is amended by adding at the end the
following:
``(5) Whoever knowingly, intentionally, and with the intent to
defraud purchases, sells or distributes, or arranges for the purchase,
sale, or distribution of 2 or more medicare or medicaid beneficiary
identification numbers or provider numbers shall be imprisoned for not
more than 3 years or fined under title 18, United States Code (or, if
greater, an amount equal to the monetary loss to the Federal and any
State government as a result of such acts), or both.''.
SEC. 9. TREATMENT OF CERTAIN SOCIAL SECURITY ACT CRIMES AS FEDERAL
HEALTH CARE OFFENSES.
(a) In General.--Section 24(a) of title 18, United States Code, is
amended--
(1) by striking the period at the end of paragraph (2) and
inserting ``; or''; and
(2) by adding at the end the following:
``(3) section 1128B of the Social Security Act (42 U.S.C.
1320a-7b).''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of enactment of this Act and apply to acts
committed on or after the date of enactment of this Act.
SEC. 10. AUTHORITY OF OFFICE OF INSPECTOR GENERAL OF THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES.
(a) Authority.--Notwithstanding any other provision of law, upon
designation by the Inspector General of the Department of Health and
Human Services, any criminal investigator of the Office of Inspector
General of such department may, in accordance with guidelines issued by
the Secretary of Health and Human Services and approved by the Attorney
General, while engaged in activities within the lawful jurisdiction of
such Inspector General--
(1) obtain and execute any warrant or other process issued
under the authority of the United States;
(2) make an arrest without a warrant for--
(A) any offense against the United
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States committed
in the presence of such investigator; or
(B) any felony offense against the United States,
if such investigator has reasonable cause to believe
that the person to be arrested has committed or is
committing that felony offense; and
(3) exercise any other authority necessary to carry out the
authority described in paragraphs (1) and (2).
(b) Funds.--The Office of Inspector General of the Department of
Health and Human Services may receive and expend funds that represent
the equitable share from the forfeiture of property in investigations
in which the Office of Inspector General participated, and that are
transferred to the Office of Inspector General by the Department of
Justice, the Department of the Treasury, or the United States Postal
Service. Such equitable sharing funds shall be deposited in a separate
account and shall remain available until expended.
SEC. 11. UNIVERSAL PRODUCT NUMBERS ON CLAIMS FORMS FOR REIMBURSEMENT
UNDER THE MEDICARE PROGRAM.
(a) UPNs on Claims Forms for Reimbursement Under the Medicare
Program.--
(1) Accommodation of upns on medicare claims forms.--Not
later than February 1, 2003, all claims forms developed or used
by the Secretary of Health and Human Services for reimbursement
under the medicare program under title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.) shall accommodate the use
of universal product numbers for a UPN covered item.
(2) Requirement for payment of claims.--Title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) is amended by
adding at the end the following:
``use of universal product numbers
``Sec. 1899A. (a) In General.--No payment shall be made under this
title for any claim for reimbursement for any UPN covered item unless
the claim contains the universal product number of the UPN covered
item.
``(b) Definitions.--In this section:
``(1) UPN covered item.--
``(A) In general.--Except as provided in
subparagraph (B), the term `UPN covered item' means--
``(i) a covered item as that term is
defined in section 1834(a)(13);
``(ii) an item described in paragraph (8)
or (9) of section 1861(s);
``(iii) an item described in paragraph (5)
of section 1861(s); and
``(iv) any other item for which payment is
made under this title that the Secretary
determines to be appropriate.
``(B) Exclusion.--The term `UPN covered item' does
not include a customized item for which payment is made
under this title.
``(2) Universal product number.--The term `universal
product number' means a number that is--
``(A) affixed by the manufacturer to each
individual UPN covered item that uniquely identifies
the item at each packaging level; and
``(B) based on commercially acceptable
identification standards such as, but not limited to,
standards established by the Uniform Code Council-
International Article Numbering System or the Health
Industry Business Communication Council.''.
(3) Development and implementation of procedures.--
(A) Information included in upn.--The Secretary of
Health and Human Services, in consultation with
manufacturers and entities with appropriate expertise,
shall determine the relevant descriptive information
appropriate for inclusion in a universal product number
for a UPN covered item.
(B) Review of procedure.--From the information
obtained by the use of universal product numbers on
claims for reimbursement under the medicare program,
the Secretary of Health and Human Services, in
consultation with interested parties, shall
periodically review the UPN covered items billed under
the Health Care Financing Administration Common
Procedure Coding System and adjust such coding system
to ensure that functionally equivalent UPN covered
items are billed and reimbursed under the same codes.
(4) Effective date.--The amendment made by paragraph (2)
shall apply to claims for reimbursement submitted on and after
February 1, 2003.
(b) Study and Reports to Congress.--
(1) Study.--The Secretary of Health and Human Services
shall conduct a study on the results of the implementation of
the provisions in paragraph (1) and (3) of subsection (a) and
the amendment to the Social Security Act in paragraph (2) of
that subsection.
(2) Reports.--
(A) Progress report.--Not later than 6 months after
the date of enactment of this Act, the Secretary of
Health and Human Services shall submit a report to
Congress that contains a detailed description of the
progress of the matters studied pursuant to paragraph
(1).
(B) Implementation.--Not later than 18 months after
the date of enactment of this Act, and annually
thereafter for 3 years, the Secretary of Health and
Human Services shall submit a report to Congress that
contains a detailed description of the results of the
study conducted pursuant to paragraph (1), together
with the Secretary's recommendations regarding the use
of universal product numbers and the use of data
obtained from the use of such numbers.
(c) Definitions.--In this section:
(1) UPN covered item.--The term ``UPN covered item'' has
the meaning given such term in section 1899A(b)(1) of the
Social Security Act (as added by subsection (a)(2)).
(2) Universal product number.--The term ``universal product
number'' has the meaning given such term in section 1899A(b)(2)
of the Social Security Act (as added by subsection (a)(2)).
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary for the purpose of carrying
out the provisions in paragraphs (1) and (3) of subsection (a),
subsection (b), and section 1899A of the Social Security Act (as added
by subsection (a)(2)).
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