,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #deed  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #e1 #bjag,mr4
 ,roskam 7= himself1 ,mr4 ,blum5au]1    
,mr4 ,%imkus1 ,mrs4 ,d+ell1 ,mr4        
,meehan1 ,mr4 ,br5dan ,f4 ,boyle (      
,p5nsylvania1 ,mr4 ,co/ello (           
,p5nsylvania1 ,mr4 ,connolly1 ,mr4      
,bu*anan1 & ,mr4 ,danny ,k4 ,davis (    
,ill9ois7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means1 & 9 addition to ! ,committee on 
,en]gy & ,comm]ce1 = 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 e/abli% a sm>t  
c>d pilot program to combat fraud1 wa/e1
 & abuse & to protect b5efici>y id5tity 
"u ! ,m$ic>e program4  #a4 ,%ort title  
,?is ,act may be cit$ z ! ,m$ic>e       
,common ,access ,c>d ,act ( #bjag4  #b4 
,m$ic>e sm>t c>d pilot program ,"p ,e ( 
title ,,xviii ( ! ,social ,security ,act
 is am5d$ by ins]t+ aft] section        

#ahff;,e ! foll[+ new section3          
#ahff;,f4 ,sm>t c>d pilot program  7a7  
,implem5tation  7#a7 ,9 g5]al ,n lat]   
?an #cf mon?s aft] ! date ( ! enactm5t (
 ?is section1 ! ,secret>y %all e/abli% a
 pilot program 79 ?is section ref]r$ to 
z ! pilot program7 to demon/rate !      
feasibility ( us+ sm>t c>d te*nology "u 
?is title4  7#b7 ,sm>t c>d te*nology    
def9$ ,9 ?is section1 ! t]m sm>t c>d    
te*nology means ! foll[+3 7,a7          
,b5efici>y sm>t c>d ,a ma*9e readable1  
fraud- & tamp]-resi/ant c>d 79 ?is      
section ref]r$ to z a sm>t c>d7 t       
includes an emb$d$ integrat$ circuit *ip
 ) a secure micro-controll] t enables ! 
v]ification & secure1 electronic        
au!ntication ( ! id5tity ( a ,m$ic>e    
b5efici>y at ! po9t ( s]vice ?r\gh a    
comb9ation ( ! sm>t c>d & a p]sonal     
id5tification numb] kn[n by or associat$
 ) su* b5efici>y4  7,b7 ,c>d read]      
te*nology ,in=mation te*nology t enables
 a suppli] & provid] to au!nticate !    
id5tity ( a ,m$ic>e b5efici>y ?r\gh     

pres5tation ( su* a sm>t c>d & su*      
compon5ts1 ) su* au!ntication to be     
reflect$ ?r\gh ! use ( a modifi] or 9   
ano!r appropriate mann]1 z det]m9$ by ! 
,secret>y1 9 ! claims adjudication      
process4  7#c7 ,program design elem5ts  
,! pilot program %all be conduct$ = a   
p]iod ( #c ye>s consi/5t ) ! foll[+3    
7,a7 ,selection ( area ,9 consultation )
 ! ,inspector ,g5]al ( ! ,dep>tm5t (    
,heal? & ,human ,s]vices1 ! ,secret>y   
%all select at lea/ #c geographic areas 
9 :i* ! pilot program w op]ate4  7,b7   
,selection ( suppli] & provid] types ,9 
consultation ) ! ,inspector ,g5]al ( !  
,dep>tm5t ( ,heal? & ,human ,s]vices1 ! 
,secret>y %all select suppli] & provid] 
types t w be requir$ to p>ticipate 9 !  
pilot program 7ref]r$ to 9 ?is section z
 p>ticipat+ suppli]s & provid]s74 ,9    
select+ su* suppli] & provid] types1 !  
,secret>y %all--  7i7 take into acc\nt !
 risk ( fraud1 wa/e1 & abuse 7z describ$
 9 section #ahhf7;j77#b77;,b7 ) respect 
to ! category ( provid] or suppli]7 &   

o!r factors z det]m9$ appropriate by !  
,secret>y2 &  7ii7 limit ! pilot program
 to no m ?an #b1jjj suppli]s & provid]s4
  7,c7 ,suppli] & provid] h>d%ip        
exemptions ,! ,secret>y %all exempt f   
p>ticipation 9 ! pilot program a suppli]
 or provid] t ei!r--  7i7 does n h      
access to c>d read] te*nology 7z        
describ$ 9 p>agraph 7#b77;,b772  7ii7   
does n h suffici5t int]net access2 or   
7iii7 has a l[ volume 7z det]m9$ by !   
,secret>y7 ( ,m$ic>e claims = :i* paym5t
 is made "u ?is title4  7,d7 ,b5efici>y 
sm>t c>d issuance ,! ,secret>y %all     
provide = ! issuance ( b5efici>y sm>t   
c>ds describ$ 9 p>agraph 7#b77;,a7 to   
all ,m$ic>e b5efici>ies resid+ 9 a      
geographic area 9 :i* ! pilot program is
 conduct$ "u subp>agraph 7,a74          
,in=mation t appe>s on ,m$ic>e c>ds us$ 
outside ! pilot program may appe> on !  
face ( ! b5efici>y sm>t c>d4  7,e7      
,in=mation on op]ation ( pilot program  
,! ,secret>y %all provide p>ticipat+    
suppli]s & provid]s & ,m$ic>e           

b5efici>ies :o are furni%$ items &      
s]vices by su* suppli]s & provid]s1 )   
in=mation on ! op]ation ( ! pilot       
program1 includ+ privacy protections    
describ$ 9 subp>agraph 7,h74  7,f7      
,access to s]vices outside ! pilot      
program  7i7 ,b5efici>ies ,m$ic>e       
b5efici>ies :o receive b5efici>y sm>t   
c>ds may receive items & s]vices c>e f  
suppli]s & provid]s n p>ticipat+ 9 !    
pilot program4  7ii7 ,suppli]s &        
provid]s ,suppli]s & provid]s n         
p>ticipat+ 9 ! pilot program may submit 
claims "u ?is title = items & s]vices   
furni%$ )\t use ( sm>t c>d te*nology to 
,m$ic>e b5efici>ies :o receive b5efici>y
 sm>t c>ds4  7,g7 ,private sector       
implem5tation ,! ,secret>y %all select1 
by us+ a competitive procurem5t1 a      
private sector contractor to implem5t & 
op]ate ! pilot program4  7,h7 ,privacy  
protections ,! ,secret>y %all ensure t !
 pilot program complies ) applicable    
,f$]al laws1 includ+ regulations1       
conc]n+ individually id5tifiable heal?  

in=mation1 includ+ ! ,privacy ,act (    
#aigd & regulations promulgat$ "u       
section #bfd7;c7 ( ! ,heal? ,insurance  
,portability & ,acc\ntability ,act (    
#aiif & su* individually id5tifiable    
in=mation %all be exempt f disclosure "u
 section #eeb7;b77#c7 ( title #e1 ,unit$
 ,/ates ,code4  7,i7 ,m&atory           
p>ticipation ,subject to subp>agraph    
7,c71 9 ! case ( s]vices furni%$ by a   
provid] or suppli] includ$ 9 a suppli]  
or provid] type select$ "u subp>agraph  
7,b7 9 a geographic area select$ "u     
subp>agraph 7,a71 paym5t may only be    
made "u ?is title = su* s]vices dur+ !  
p]iod ( ! pilot program if ! provid] or 
suppli] is p>ticipat+ 9 ! pilot program4
  7#d7 ,def9itions ,9 ?is section3 7,a7 
,! t]ms suppli] & provid] h ! mean+s    
giv5 ! t]ms suppli] & provid] ( s]vices 
9 subsections 7d7 & 7u71 respectively1 (
 section #ahfa4  7,b7 ,! t]m ,m$ic>e    
b5efici>y means an individual :o is     
enroll$ 9 ! orig9al ,m$ic>e fee-=-s]vice
 program "u p>ts ,a & ,b & is n enroll$ 

9 an ,,ma plan "u "p ,c1 an eligible    
organization "u section #ahgf1 or a     
,,pace program "u section #ahid4  7,c7  
,! t]m ,m$ic>e claim means a claim = an 
item or s]vice = :i* paym5t is made "u  
?is title4  7b7 ,reports to ,congress   
7#a7 ,9 g5]al ,! ,secret>y %all submit  
to ,congress ! foll[+ reports3  7,a7    
,initial design report ,n lat] ?an #b   
ye>s aft] ! date ( ! enactm5t ( ?is     
section1 a report t outl9es ! plan =    
implem5tation ( ! pilot program4  7,b7  
,implem5tation report ,aft]             
implem5tation ( ! pilot program1 a      
report on ! initial implem5tation ( !   
pilot program1 includ+ p>amet]s =       
op]ation ( su* program4  7,c7 ,int]im   
p]=mance report ,n lat] ?an #b ye>s aft]
 ! date ! pilot program is implem5t$1 an
 int]im report on ! p]=mance ( su*      
program4  7,d7 ,f9al p]=mance report ,n 
lat] ?an #ah mon?s aft] ! date ( !      
completion ( ! pilot program1 a f9al    
report on ! p]=mance ( su* program4     
7#b7 ,cont5ts ( c]ta9 reports ,! reports

 "u subp>agraphs 7,c7 & 7,d7 ( p>agraph 
7#a7 %all include in=mation on !        
p]=mance ( ! pilot program 9 a*iev+ its 
objectives & su* recomm5dations reg>d+  
exp&+ ! duration & scope ( su* program z
 ! ,secret>y det]m9es appropriate4  7c7 
,fund+ ,= purposes ( conduct+ ! pilot   
program1 ! ,secret>y %all provide = !   
transf]1 f ! ,supplem5tal ,m$ical       
,insurance ,tru/ ,fund "u section #ahda1
 to ! ,c5t]s = ,m$ic>e  ,m$icaid        
,program ,managem5t ,acc\nt1 (          
#aej1jjj1jjj1 to be available until     
exp5d$4  4