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Stop Medicare Fraud Act


Sheridan

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Senator BARILLA, for himself, submits

A BILL

To fight Medicare fraud

Section 1. Short Title.

(a) This bill may be referred to as the “Fight Medicare Fraud Act”.

Sec. 2. Smart Card Technology. 

(a) Within three years, the Center for Medicare & Medicaid Services (CMS) shall replace all Medicare ID cards with Smart Cards. 

(b) Smart Cards under this section shall be defined as cards that: 

(i) are machine readable;

(ii) are tamper-resistant; 

(iii) include an embedded integrated circuit chip that enables the verification and secure authentication of a Medicare beneficiary’s identity 

(c) CMS shall work with industry to develop card reader technology allowing Medicare suppliers and providers to to authenticate the identity of a Medicare beneficiary using their Smart Card. 

 

(d) Within four years, CMS shall require all Medicare suppliers and providers to use such card readers to authenticate the identity of a Medicare beneficiary’s identity. 

Sec. 3. Beneficiary Education.

(a) Each year, CMS shall draft, and shall mail to all Medicare beneficiaries, a report on Medicare Fraud. The report shall contain practical advice for avoiding becoming the victim of Medicare fraud, including, but not limited to:

(i) Descriptions of the most common Medicare fraud scheme types;

(ii) Advice on how to spot Medicare fraud;

(iii) Information on how to report suspected Medicare fraud to relevant authorities;

(iv) Information on awards and bounties for Medicare fraud whistleblowers. 

Sec. 4. Enhanced Penalties.

(a) The maximum penalty for knowingly submitting false Medicare claims under the False Claims Act shall be increased to a fine of up to $750,000 and up to ten years in prison. 

(b) The maximum penalty for knowingly giving or accepting a kickback as part of a Medicare fraud scheme shall be increased to a fine of up to $75,000 and up to ten years in prison.

Sec. 5. Enactment. 

(a) This bill shall go into effect immediately upon Constitutional passage. 

Senator John Kadar (R-WV)

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