,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #dah  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #be1 #bjac    
,ms4 ,ros-,leht95 introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,en]gy & ,comm]ce1 & 9 addition to !    
,committee on ,ways & ,means1 = a p]iod 
to be subsequ5tly det]m9$ by ! ,speak]1 
9 ea* case = consid]ation ( su*         
provisions z fall )9 ! jurisdiction ( ! 
committee conc]n$  ,a ,,bill  ,to r$uce 
,m$ic>e wa/e1 fraud1 & abuse by provid+ 
= enhanc$ p5alties to combat ,m$ic>e &  
,m$icaid fraud1 = a ,m$ic>e data-m9+    
sy/em1 = a /udy on apply+ biometric     
te*nology1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,m$ic>e 
,fraud ,en=cem5t & ,prev5tion ,act (    
#bjac4  #b4 ,enhanc$ crim9al p5alties to
 combat ,m$ic>e & ,m$icaid fraud  7a7 ,9
 g5]al ,section #aabh;,b ( ! ,social    
,security ,act 7#db ,u4,s4,c4           
#acbj;a-#g;b7 is am5d$--  7#a7 9        
subsection 7a71 by /rik+ #aj1jjj or     
imprison$ = n m ?an "o ye> & ins]t+     

#bj1jjj or imprison$ = n m ?an two ye>s2
 &  7#b7 9 ea* ( subsections 7a71       
7b77#a71 7b77#b71 7c71 & 7d71 by /rik+  
#be1jjj or imprison$ = n m ?an five ye>s
 & ins]t+ #ej1jjj or imprison$ = n m ?an
 #aj ye>s4  7b7 ,illegal di/ribution (  
,m$ic>e or ,m$icaid b5efici>y           
id5tification or bill+ privileges       
,section #aabh;,b ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #acbj;a-#g;b7 is    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7h7 ,:oev] kn[+ly pur*ases1
 sells1 or unlawfully di/ributes1 or    
arranges = ! pur*ase1 sale1 or unlawful 
di/ribution ( two or m ,m$ic>e or       
,m$icaid b5efici>y id5tification numb]s 
or bill+ privileges "u title ,,xviii or 
title ,,xix %all be imprison$ = n m ?an 
#aj ye>s or f9$ "u title #ah1 ,unit$    
,/ates ,code 7or1 if great]1 an am\nt   
equal to ! monet>y loss to ! ,f$]al &   
any ,/ate gov]nm5t z a result ( su*     
acts71 or bo?4  4  7c7 ,effective date  
,! am5dm5ts made by ?is section %all    
apply to acts committ$ on or aft] ! date

 ( ! enactm5t ( ?is ,act4  #c4 ,enhanc$ 
civil au?orities to combat ,m$ic>e &    
,m$icaid fraud  7a7 ,civil monet>y      
p5alties law alignm5t & o!r *anges  7#a7
 ,section #aabh;,a7a7 ( ! ,social       
,security ,act 7#db ,u4,s4,c4           
#acbj;a-#g;a7a77 is am5d$--  7,a7 9     
p>agraph 7#a71 by /rik+ to an (fic]1    
employee1 or ag5t ( ! ,unit$ ,/ates1 or 
( any dep>tm5t or ag5cy !re(1 or ( any  
,/ate ag5cy 7z def9$ 9 subsection       
7i77#a7712  7,b7 by ins]t+ aft] p>agraph
 7#aj71 z add$ by section #fdjb7;d77#b7 
( ! ,pati5t ,protection & ,af=dable ,c>e
 ,act 7,public ,law #aaa-adh7 ! foll[+  
new p>agraphs3  7#aa7 conspires to      
commit a violation ( ?is section2 or    
7#ab7 kn[+ly makes1 uses1 or causes to  
be made or us$1 a false record or       
/atem5t mat]ial to an obligation to pay 
or transmit money or prop]ty to a ,f$]al
 heal? c>e program1 or kn[+ly conceals  
or kn[+ly & improp]ly avoids or         
decreases an obligation to pay or       
transmit money or prop]ty to a ,f$]al   

heal? c>e program2  2  7,c7 9 ! fir/    
s5t5ce--  7i7 by /rik+ or 9 cases "u    
p>agraph 7#i7 & ins]t+ 9 cases "u       
p>agraph 7#i72 &  7ii7 by /rik+ fact7 & 
ins]t+ fact71 9 cases "u p>agraph 7#aa71
 #ej1jjj = any violation describ$ 9 ?is 
section committ$ 9 fur!rance ( !        
conspiracy involv$1 & 9 cases "u        
p>agraph 7#ab71 #ej1jjj = ea* false     
record or /atem5t1 or concealm5t1       
avoidance1 or decrease2 &  7,d7 9 !     
second s5t5ce1 by /rik+ mat]ial fact74 &
 ins]t+ mat]ial fact72 or 9 cases "u    
p>agraph 7#aa71 an assessm5t ( n m ?an  
#c times ! total am\nt t w\ld o!rwise   
apply = any violation describ$ 9 ?is    
section committ$ 9 fur!rance ( !        
conspiracy involv$2 or 9 cases "u       
p>agraph 7#ab71 an assessm5t ( n m ?an  
#c times ! total am\nt ( ! obligation to
 :i* ! false record or /atem5t 0 mat]ial
 or t 0 avoid$ or decreas$44  7#b7      
,section #aabh;,a7c77#a7 ( ! ,social    
,security ,act 7#db ,u4,s4,c4           
#acbj;a-#g;a7c77#a77 is am5d$ by /rik+  

six ye>s & ins]t+ #aj ye>s4  7#c7       
,section #aabh;,a7i7 ( ! ,social        
,security ,act 7#db ,u4,s4,c4           
#acbj;a-#g;a7i77 is am5d$--  7,a7 by    
am5d+ p>agraph 7#b7 to read z foll[s3   
7#b7 ,! t]m claim means any application1
 reque/1 or dem&1 :e!r "u contract1 or  
o!rwise1 = money or prop]ty = items &   
s]vices "u a ,f$]al heal? c>e program 7z
 def9$ 9 section #aabh;,b7f771 :e!r or n
 ! ,unit$ ,/ates or a ,/ate ag5cy has   
title to ! money or prop]ty1 t--  7,a7  
is pres5t$ or caus$ to be pres5t$ to an 
(fic]1 employee1 or ag5t ( ! ,unit$     
,/ates1 or ( any dep>tm5t or ag5cy !re(1
 or ( any ,/ate ag5cy 7z def9$ 9        
subsection 7i77#a772 or  7,b7 is made to
 a contractor1 grantee1 or o!r recipi5t 
if ! money or prop]ty is to be sp5t or  
us$ on ! ,f$]al heal? c>e program's     
behalf or to advance a ,f$]al heal? c>e 
program int]e/1 & if ! ,f$]al heal? c>e 
program--  7i7 provides or has provid$  
any portion ( ! money or prop]ty reque/$
 or dem&$2 or  7ii7 w reimburse su*     

contractor1 grantee1 or o!r recipi5t =  
any portion ( ! money or prop]ty :i* is 
reque/$ or dem&$4  2  7,b7 by am5d+     
p>agraph 7#c7 to read z foll[s3  7#c7 ,!
 t]m item or s]vice means1 )\t          
limitation1 any m$ical1 social1         
managem5t1 adm9i/rative1 or o!r item or 
s]vice us$ 9 connection ) or directly or
 indirectly relat$ to a ,f$]al heal? c>e
 program4  2  7,c7 9 p>agraph 7#g7--    
7i7 by /rik+ t]m %\ld "k means & ins]t+ 
t]ms kn[+1 kn[+ly1 & %\ld "k mean2  7ii7
 by r$esignat+ subp>agraphs 7,a7 & 7,b7 
z subp>agraphs 7,b7 & 7,c71             
respectively2  7iii7 by ins]t+ be=e     
subp>agraph 7,b71 z r$esignat$ by clause
 7ii71 ! foll[+ new subp>agraph3  7,a7  
has actual k ( ! in=mation2  2 &  7iv7 9
 ! matt] foll[+ subp>agraph 7,c71 z     
r$esignat$ by clause 7ii7--  7,i7 by    
ins]t+ require aft] &2 &  7,,ii7 by     
/rik+ is requir$2 &  7,d7 by add+ at !  
end ! foll[+ new p>agraphs3  7#h7 ,! t]m
 obligation means an e/abli%$ duty1 :e!r
 or n fix$1 aris+ f an express or impli$

 contractual1 grantor-grantee1 or       
lic5sor lic5see relation%ip1 f a        
fee-bas$ or simil> relation%ip1 f /atute
 or regulation1 or f ! ret5tion ( any   
ov]paym5t4  7#i7 ,! t]m mat]ial means   
hav+ a natural t5d5cy to influ5ce1 or be
 capable ( influ5c+1 ! paym5t or receipt
 ( money or prop]ty4  4  7b7 ,exclusion 
( responsible corporate (ficials        
,section #aabh7;b7 ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #acbj;a-#g7;b77 is 
am5d$ by /rik+ clauses 7i7 & 7ii7 (     
p>agraph 7#ae77;,a7 & ins]t+ ! foll[+3  
7i7 :o has or _h a direct or indirect   
own]%ip or control int]e/ 9 a sanction$ 
entity at ! "t ( & :o knew or %\ld h    
kn[n 7z def9$ 9 section #aabh7;i77#g77 (
 any ( ! conduct t =m$ a basis = !      
conviction or exclusion describ$ 9      
subp>agraph 7,b72 or  7ii7 :o is or 0 an
 (fic] or manag+ employee 7z def9$ 9    
section #aabf7;b77 ( su* an entity at ! 
"t ( any ( ! conduct t =m$ a basis = !  
conviction or exclusion s describ$4  4  
7c7 ,paym5t susp5sions ,subsection      

7o77#a7 ( section #ahfb ( ! ,social     
,security ,act 7#db ,u4,s4,c4 #aciey7 is
 am5d$ by /rik+ may & ins]t+ %all4  7d7 
,civil monet>y p5alties = false /atem5ts
 or delay+ inspections ,p>agraph 7#i7 ( 
section #aabh;,a7a7 ( ! ,social         
,security ,act 7#db ,u4,s4,c4           
#acbj;a-#g;a7a77 is am5d$ by ins]t+ or  
to timely provide in=mation 9 response  
to a reque/ au?oriz$ by section         
#aabh;,j7b71 aft] regulations714  #d4   
,enhanc$ scre5+1 ,m$ic>e data-m9+ sy/em2
 biometric te*nology /udy  7a7 ,enhanc$ 
scre5+ ,section #ahff7;j77#b77;,b77ii7 (
 ! ,social ,security ,act 7#db ,u4,s4,c4
 #acie;cc7j77#b77;,b77ii77 is am5d$ by  
/rik+ may & ins]t+ %all4  7b7 ,access to
 ,real ,"t ,claims & ,paym5t ,data      
,section #aabh;,j7a77#b7 ( ! ,social    
,security ,act is am5d$--  7#a7 by      
ins]t+ includ+ real "t claims & paym5t  
data1 aft] access to claims & paym5t    
data2 &  7#b7 by add+ at ! end ! foll[+ 
s5t5ce3 ,9 c>ry+ out ?is section1 !     
,inspector ,g5]al ( ! ,dep>tm5t ( ,heal?

 & ,human ,s]vices1 9 consultation ) !  
,attorney ,g5]al1 %all implem5t         
me*anisms = ! %>+ ( in=mation ab\t      
suspect$ fraud relat+ to ! ,f$]al heal? 
c>e programs "u titles ,,xviii1 ,,xix1 &
 ,,xxi ) o!r appropriate law en=cem5t   
(ficials44  7c7 ,/udy on use ( biometric
 te*nology  7#a7 ,9 g5]al ,! ,secret>y (
 ,heal? & ,human ,s]vices %all provide =
 a /udy t analyzes ! feasibility &      
b5efits 9 r$uc+ wa/e1 fraud1 & abuse (  
c>ry+ out a program 79 ?is subsection   
ref]r$ to z a biometric te*nology       
program7 t implem5ts biometric te*nology
 to ensure t individuals entitl$ to     
b5efits "u "p ,a ( title ,,xviii ( !    
,social ,security ,act or enroll$ "u "p 
,b ( su* title are physically pres5t at 
! "t & place ( receipt ( c]ta9 items &  
s]vices 7specifi$ by ! ,secret>y7 = :i* 
paym5t may be made "u su* title4 ,su* a 
program may provide = f9ancial inc5tives
 to enc\rage volunt>y p>ticipation (    
provid]s ( s]vices 7z def9$ 9 section   
#ahfa7u7 ( su* ,act7 & suppli]s 7z def9$

 9 section #ahfa7;d7 ( su* ,act74  7#b7 
,report ,n lat] ?an #f mon?s aft] ! date
 ( ! enactm5t ( ?is ,act1 ! ,secret>y   
%all submit to ! ,congress a report on !
 /udy conduct$ "u p>agraph 7#a74 ,su*   
report %all include an analysis ( !     
likely effectiv5ess ( a biometric       
te*nology program on r$uc+ wa/e1 fraud1 
& abuse "u ! ,m$ic>e program & may      
include recomm5dations ) reg>d to :e!r  
su* a program1 on a pilot or o!r basis1 
%\ld be implem5t$4