Medicare Common Access Card Act of 2014 - Establishes a pilot program under title XVIII (Medicare) of the Social Security Act (SSA) in order to utilize smart card technology for Medicare beneficiary and provider identification cards.
Amends SSA title XI to extend through FY2029 funding for the Center for Medicare and Medicaid Innovation.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2586 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2586
To establish a smart card pilot program under the Medicare program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 10, 2014
Mr. Kirk (for himself and Mr. Rubio) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish a smart card pilot program under the Medicare program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medicare Common Access Card Act of
2014''.
SEC. 2. SECURE MEDICARE CARD PILOT PROGRAM.
(a) Pilot Program Implementation (Phase I).--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Secretary shall conduct a pilot
program under title XVIII of the Social Security Act for the
purpose of utilizing smart card technology for Medicare
beneficiary and provider identification cards in order to--
(A) increase the quality of care furnished to
Medicare beneficiaries;
(B) improve the accuracy and efficiency in the
billing for Medicare items and services furnished by
Medicare providers;
(C) reduce the potential for identity theft and
other unlawful use of Medicare beneficiary and provider
identifying information; and
(D) reduce waste, fraud, and abuse in the Medicare
program.
(2) Site requirements.--The Secretary shall conduct the
pilot program in at least 5 geographic areas in which the
Secretary determines there is a high risk for waste, fraud, or
abuse.
(3) Design of pilot program.--In designing the pilot
program, the Secretary shall provide for the following:
(A) Implementation of a system that utilizes a
smart card as a Medicare identification card for
Medicare beneficiaries and Medicare providers. Such a
card shall contain appropriate security features and
protect personal privacy.
(B) Issuance of a new smart card to all Medicare
beneficiaries participating in the pilot program. Such
card shall not have the Social Security number printed
on the front but, instead shall have such number stored
securely on the smart card chip along with other
information the Secretary deems necessary.
(C) Issuance of a new provider card to all Medicare
providers participating in the pilot program. Such card
shall include a photograph of the provider and shall
not have the Medicare provider number printed on the
front of the card but, instead shall have such number
stored securely on the smart card chip along with other
information the Secretary deems necessary.
(D) A process for enrollment of all Medicare
providers that includes--
(i) identity and certification
verification; and
(ii) utilization of biometric data, such as
fingerprints, for provider identification and
authentication.
(E) A process under which the cards issued under
subparagraphs (B) and (C) are used by both Medicare
beneficiaries and Medicare providers to verify
eligibility, prevent fraud, and authorize transactions.
(F) Distribution of necessary equipment, including
cards, card readers, kiosks, biometric readers, and
other materials or documents to Medicare beneficiaries
and providers at no cost to them.
(G) Regular monitoring and review by the Secretary
of Medicare providers' Medicare billings and Medicare
beneficiaries' Medicare records in order to identify
and address inaccurate charges and instances of waste,
fraud, or abuse.
(H) Reporting mechanisms for measuring the cost
savings to the Medicare program by reason of the pilot
program.
(I) Include provisions--
(i) to ensure that all devices and systems
utilized as part of the pilot program comply
with standards for identity credentials and
biometric data developed by the American
National Standards Institute and the National
Institute of Standards and Technology and
Federal requirements relating to
interoperability and information security,
including all requirements under the Health
Insurance Portability and Accountability Act of
1996;
(ii) to ensure that a Medicare
beneficiary's and provider's personal
identifying, health, and other information is
protected from unauthorized access or
disclosure through the use of at least two-
factor authentication;
(iii) for the development of procedures and
guidelines for the use of identification cards,
card readers, kiosks, biometric data and
readers, and other equipment to verify a
Medicare beneficiary's identity and eligibility
for services;
(iv) to ensure that each Medicare
beneficiary and provider participating in the
pilot program is informed of--
(I) the purpose of the program;
(II) the processes for capturing,
enrolling, and verifying their
eligibility and, with respect to
providers, their biometric data;
(III) the manner in which the
biometric data for providers will be
used; and
(IV) the steps that will be taken
to protect personal identifying,
health, and other information from
unauthorized access and disclosure;
(v) for addressing problems related to the
loss, theft, or malfunction of or damage to
equipment and any identifying documents or
materials provided by the Secretary;
(vi) for development of a hotline, Web
site, or other means by which Medicare
beneficiaries and providers can contact the
Secretary for assistance; and
(vii) for addressing problems related to
accessing care outside the pilot area and cases
where the individual faces issues related to
physical or other capacity limitations.
(4) Privacy.--Information on the smart card shall only be
disclosed if the disclosure of such information is permitted
under the Federal regulations (concerning the privacy of
individually identifiable health information) promulgated under
section 264(c) of the Health Insurance Portability and
Accountability Act of 1996.
(5) Disclosure exemption.--Information on the smart card
shall be exempt from disclosure under section 552(b)(3) of
title 5, United States Code.
(b) Expanded Implementation (Phase II).--Taking into account the
interim report under subsection (d)(2) the Secretary shall, through
rulemaking, expand the duration and the scope of the pilot program, to
the extent determined appropriate by the Secretary.
(c) Waiver Authority.--The Secretary may waive such provisions of
titles XI and XVIII of the Social Security Act as the Secretary
determines to be appropriate for the conduct of the pilot program.
(d) Reports to Congress.--
(1) Plan.--Not later than 6 months after the date of the
enactment of this Act, the Secretary shall submit to Congress a
report that contains a description of the design and
development of the pilot program, including the Secretary's
plan for implementation.
(2) Interim report.--Not later than 1 year after the pilot
program is first implemented, the Secretary shall conduct an
evaluation of the pilot program and submit an interim report to
Congress. Such an evaluation shall include an initial analysis
of the deployment of the program, the usability of the card
system, and the measures taken to protect beneficiary and
provider information.
(3) Additional report.--Not later than 2 years after the
date that the pilot program is first implemented, the Secretary
shall submit to Congress a report on the pilot program. Such
report shall contain a detailed description of issues related
to the expansion of the program under subsection (b) and
recommendations for such legislation and administrative actions
as the Secretary considers appropriate for implementation of
the program on a nationwide basis.
(e) Funding.--There are appropriated, from amounts in the Treasury
not otherwise appropriated, $29,000,000 for the design, implementation,
and evaluation of the pilot program. Amounts appropriated under the
preceding sentence shall remain available until expended.
(f) Definitions.--In this section:
(1) Medicare beneficiary.--The term ``Medicare
beneficiary'' means an individual entitled to, or enrolled for,
benefits under part A of title XVIII of the Social Security Act
or enrolled for benefits under part B of such title.
(2) Medicare program.--The term ``Medicare program'' means
the health benefits program under title XVIII of the Social
Security Act.
(3) Medicare provider.--The term ``Medicare provider''
means a provider of services (as defined in subsection (u) of
section 1861 of the Social Security Act (42 U.S.C. 1395x)) and
a supplier (as defined in subsection (d) of such section),
including a supplier of durable medical equipment and supplies.
(4) Pilot program.--The term ``pilot program'' means the
pilot program conducted under this section.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(6) Smart card.--The term ``smart card'' means a secure,
electronic, machine readable, fraud-resistant, tamper-resistant
card that includes an embedded integrated circuit chip with a
secure micro-controller.
SEC. 3. REVISION OF FUNDING FOR THE CENTER FOR MEDICARE AND MEDICAID
INNOVATION.
Section 1115A(f) of the Social Security Act (42 U.S.C. 1315a(f)) is
amended--
(1) In paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) by redesignating subparagraph (C) as
subparagraph (D);
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) $8,900,000,000 for the activities initiated
under this section for the period of fiscal years 2020
through 2029; and''; and
(D) in subparagraph (D), as redesignated by
subparagraph (B) of this paragraph, by striking
``2020'' and inserting ``2030''; and
(2) in paragraph (2), by striking ``and (C)'' and inserting
``, (C), and (D)''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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