I 

111TH CONGRESS 

1ST SESSION H. R. 3369 

To amend titles XVIII and XIX of the Social Security Act to require provider 

and supplier payments under Medicare and Medicaid to be made through 

direct deposit or electronic funds transfer (EFT) at insured depository 

institutions. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2009 

Mr. PATRICK J. MURPHY of Pennsylvania (for himself and Mr. ARCURI) introduced the following bill; which was referred to the Committee on Energy 

and Commerce, and in addition to the Committee on Ways and Means, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To amend titles XVIII and XIX of the Social Security Act 

to require provider and supplier payments under Medicare and Medicaid to be made through direct deposit 

or electronic funds transfer (EFT) at insured depository 

institutions. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘IMPROVE Act’’. 


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1 SEC. 2. REQUIRING PROVIDER AND SUPPLIER PAYMENTS 

2 UNDER MEDICARE AND MEDICAID TO BE 

3 MADE THROUGH DIRECT DEPOSIT OR ELEC4 TRONIC FUNDS TRANSFER (EFT) AT INSURED 

5 DEPOSITORY INSTITUTIONS. 

6 (a) MEDICARE.—Section 1874 of the Social Security 

7 Act (42 U.S.C. 1395kk) is amended by adding at the end 

8 the following new subsection: 

9 ‘‘(e) LIMITATION ON PAYMENT TO PROVIDERS OF

10 SERVICES AND SUPPLIERS.—No payment shall be made 

11 under this title for items and services furnished by a pro12 vider of services or supplier unless each payment to the 

13 provider of services or supplier is in the form of direct 

14 deposit or electronic funds transfer to the provider of serv15 ices’ or supplier’s account, as applicable, at a depository 

16 institution (as defined in section 19(b)(1)(A) of the Fed17 eral Reserve Act (12 U.S.C. 461(b)(1)(A))).’’. 

18 (b) MEDICAID.—Section 1903(d) of such Act (42 

19 U.S.C. 1396b(d)) is amended by adding at the end the 

20 following new paragraph: 

21 ‘‘(7) Payment shall be made to a State under sub22 section (a) for expenditures made by the State for pay23 ment for items and services furnished by a provider or 

24 supplier of items or services under this title if each pay25 ment by the State to the provider or supplier is in the 

26 form of direct deposit or electronic funds transfer to the 


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1 provider’s or supplier’s account, as applicable, at a deposi2 tory institution (as defined in section 19(b)(1)(A) of the 

3 Federal Reserve Act (12 U.S.C. 461(b)(1)(A))).’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to each payment made to a pro6 vider of services, provider, or supplier on or after such 

7 date (not later than 60 days after the date of the enact8 ment of this Act) as the Secretary of Health and Human 

9 Services shall specify, regardless of when the items and 

10 services for which such payment is made were furnished. 

Æ 


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