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US HR2305

US HR2305
Preventing and Reducing Improper Medicare and Medicaid Expenditures Act of 2013


summary

Introduced
06/10/2013
In Committee
06/25/2013
Crossed Over
Passed
Dead
01/03/2015

Introduced Session

113th Congress

Bill Summary

Preventing and Reducing Improper Medicare and Medicaid Expenditures Act of 2013 or PRIME Act of 2013 - Amends part D (Prescription Drug Benefits) of title XVIII (Medicare) of the Social Security Act (SSA) to direct the Secretary of Health and Human Services (HHS) to prohibit sponsors of prescription drug plans (PDPs) from paying claims for prescription drugs that do not include the valid National Provider Identifier for the drug's prescriber. Requires the Secretary's annual report to Congress on the use of recovery audit contractors under the Medicare Integrity Program to: (1) describe the types and financial cost of improper payment vulnerabilities identified by recovery audit contractors and how the Secretary is addressing them, and (2) assess the effectiveness of changes made to Medicare payment policies and procedures in order to address those vulnerabilities. Requires the Secretary to address improper payment vulnerabilities in a timely manner, prioritized based on the risk to the Medicare program. Authorizes the Secretary, under recovery audit contracts under both Medicare and Medicaid (SSA title XIX), to retain a certain portion of the recovered amounts for a program management account for activities addressing problems that contribute to improper payments and fraud. Requires the Secretary, under such contracts, to retain an additional 5% of the recovered amounts to be made available to the HHS Inspector General to investigate improper payments or audit internal controls associated with Medicare or Medicaid payments. Directs the Secretary to develop a plan to revise the incentive program under the Health Insurance Portability and Accountability Act of 1996 for the reporting of fraud and abuse to encourage greater participation by individuals reporting Medicare fraud and abuse. Requires the plan to include certain recommendations for: (1) ways to enhance rewards for individuals reporting, and (2) extention of the incentive program to the Medicaid program. Amends SSA title XIX to cover the costs of equipment, salaries and benefits, and travel and training in appropriations for the Medicaid Integrity Program. Allows the Secretary to increase Centers for Medicare and Medicaid Services (CMS) staff whose duties consist solely of protecting the integrity of the Medicare program by a number determined necessary to carry out the Program (currently, by 100). Directs the Secretary to provide incentives for Medicare administrative contractors to reduce the improper payment error rates in their jurisdictions. Requires imprisonment for up to 10 years or a fine of up to $500,000 ($1 million in the case of a corporation), or both, for knowingly, intentionally, and with the intent to defraud purchasing, selling, distributing, or arranging for the purchase, sale, or distribution of a Medicare, Medicaid, or CHIP beneficiary identification number or billing privileges under SSA titles XVIII, title XIX, or title XXI (Children's Health Insurance Program). Amends SSA title IV part D (Child Support and Establishment of Paternity) with respect to the Federal Parent Locator Service to give the CMS Administrator access to information in the National Directory of New Hires to determine the eligibility of an applicant for, or enrollee in, the Medicare program or an applicable state health subsidy program under the Patient Protection and Affordable Care Act (PPACA). Requires the Secretary to disclose to the HHS Inspector General information on individuals and their employers in the National Directory of New Hires if the HHS Inspector General gives the Secretary their names and Social Security account numbers. Restricts the use of such information to: (1) determining the eligibility of an applicant for, or enrollee in, the Medicare program or an applicable state health subsidy program; or (2) evaluating the integrity of such programs. Sets forth rules for the use and disclosure of such information by state agencies. Directs the Secretary to establish a plan to encourage and facilitate the participation of states in the Medicare-Medicaid Data Match Program (Medi-Medi Program). Revises Medi-Medi Data Match Program purposes. Amends SSA title XIX, as amended by PPACA, and XXI with respect to claims processing and detection of fraud within the Medicaid and CHIP programs.

AI Summary

This bill, the Preventing and Reducing Improper Medicare and Medicaid Expenditures Act of 2013 (PRIME Act), aims to strengthen oversight and combat fraud within the Medicare and Medicaid programs. Key provisions include requiring prescription drug plans to include a valid prescriber's National Provider Identifier (NPI) on all claims, enhancing the reporting and addressing of improper payment vulnerabilities identified by recovery audit contractors (entities that audit payments to find errors), and revising the incentive program for reporting Medicare fraud and abuse to encourage more participation and extend it to Medicaid. The bill also allows for a portion of recovered funds from audit contractors to be used for program management to prevent future improper payments and fraud, and dedicates an additional percentage to the HHS Inspector General for investigations. Furthermore, it increases penalties for the illegal sale or distribution of Medicare, Medicaid, or CHIP beneficiary identification numbers or billing privileges, grants the Centers for Medicare and Medicaid Services (CMS) Administrator access to the National Directory of New Hires to verify eligibility for Medicare and related subsidy programs, and improves data sharing between federal and state Medicaid programs, including providing states with information on improper Medicare payments for dual-eligible individuals. Finally, it mandates a report to Congress on the implementation of these provisions.

Committee Categories

Business and Industry, Health and Social Services

Sponsors (67)

Peter Roskam (R)* Ron Barber (D),  Dan Benishek (R),  Ami Bera (D),  Diane Black (R),  Earl Blumenauer (D),  Julia Brownley (D),  Vern Buchanan (R),  Shelley Moore Capito (R),  John Carney (D),  Matt Cartwright (D),  Jim Cooper (D),  Tom Cotton (R),  Rodney Davis (R),  John Delaney (D),  Tammy Duckworth (D),  John Duncan (R),  Jim Gerlach (R),  Tim Griffin (R),  Colleen Hanabusa (D),  Richard Hanna (R),  Joseph Heck (R),  Jim Himes (D),  Rush Holt (D),  Randy Hultgren (R),  Duncan Hunter (R),  Walter Jones (R),  Dave Joyce (R),  Derek Kilmer (D),  Ron Kind (D),  Adam Kinzinger (R),  Ann Kirkpatrick (D),  Tom Latham (R),  Daniel Lipinski (D),  Frank LoBiondo (R),  David Loebsack (D),  Zoe Lofgren (D),  Michael Michaud (D),  Markwayne Mullin (R),  Pete Olson (R),  Erik Paulsen (R),  Ed Perlmutter (D),  Scott Peters (D),  Charles Rangel (D),  Tom Reed (R),  James Renacci (R),  Reid Ribble (R),  Martha Roby (R),  Thomas Rooney (R),  Dennis Ross (R),  Lucille Roybal-Allard (D),  Edward Royce (R),  Aaron Schock (R),  Kurt Schrader (D),  Allyson Schwartz (D),  Carol Shea-Porter (D),  Mike Simpson (R),  Albio Sires (D),  Jackie Speier (D),  Steve Stivers (R),  G.T. Thompson (R),  Chris Van Hollen (D),  Tim Walberg (R),  Daniel Webster (R),  Peter Welch (D),  Ed Whitfield (R),  Steve Womack (R), 

Last Action

Referred to the Subcommittee on Health. (on 06/25/2013)

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