1009 
licensee relationship, from a fee-based or similar re-
lationship, from statute or regulation, or from the 
retention of any overpayment. 
‘‘(9) The term ‘material’ means having a nat-
ural tendency to influence, or be capable of influ-
encing, the payment or receipt of money or prop-
erty.’’. 
SEC. 1646. REQUIRING PROVIDER AND SUPPLIER PAY-
MENTS UNDER MEDICARE TO BE MADE 
THROUGH DIRECT DEPOSIT OR ELECTRONIC 
FUNDS TRANSFER (EFT) AT INSURED DEPOSI-
TORY INSTITUTIONS. 
(a) MEDICARE.—Section 1874 of the Social Security 
Act (42 U.S.C. 1395kk) is amended by adding at the end 
the following new subsection: 
‘‘(e) LIMITATION ON PAYMENT TO PROVIDERS OF 
SERVICES AND SUPPLIERS.—No payment shall be made 
under this title for items and services furnished by a pro-
vider of services or supplier unless each payment to the 
provider of services or supplier is in the form of direct 
deposit or electronic funds transfer to the provider of serv-
ices’ or supplier’s account, as applicable, at a depository 
institution (as defined in section 19(b)(1)(A) of the Fed-
eral Reserve Act.’’.
1010 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to each payment made to a pro-
vider of services, provider, or supplier on or after such 
date (not later than July 1, 2012) as the Secretary of 
Health and Human Services shall specify, regardless of 
when the items and services for which such payment is 
made were furnished. 
SEC. 
1647. 
INSPECTOR 
GENERAL 
FOR 
THE 
HEALTH 
CHOICES ADMINISTRATION. 
(a) ESTABLISHMENT; APPOINTMENT.—There is 
hereby established an Office of Inspector General for the 
Health Choices Administration, to be headed by the In-
spector General for the Health Choices Administration to 
be appointed by the President, by and with the advice and 
consent of the Senate. 
(b) AMENDMENTS TO THE INSPECTOR GENERAL ACT 
OF 1978.— 
(1) APPLICATION TO HEALTH CHOICES ADMIN-
ISTRATION.—Section 12 of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended— 
(A) in paragraph (1), by striking ‘‘or the 
Federal Cochairpersons of the Commissions es-
tablished under section 15301 of title 40, 
United States Code’’ and inserting ‘‘the Federal 
Cochairpersons of the Commissions established
1011 
under section 15301 of title 40, United States 
Code; or the Commissioner of the Health 
Choices Administration established under sec-
tion 241 of the Affordable Health Care for 
America Act’’; and 
(B) in paragraph (2), by striking ‘‘or the 
Commissions established under section 15301 
of title 40, United States Code’’ and inserting 
‘‘the Commissions established under section 
15301 of title 40, United States Code, or the 
Health 
Choices 
Administration 
established 
under section 241 of the Affordable Health 
Care for America Act’’. 
(2) SPECIAL PROVISIONS RELATING TO HEALTH 
CHOICES ADMINISTRATION AND HHS.—The Inspec-
tor General Act of 1978 (5 U.S.C. App.) is further 
amended by inserting after section 8L the following 
new section: 
‘‘SEC. 8M SPECIAL PROVISIONS RELATING TO THE HEALTH 
CHOICES ADMINISTRATION AND THE DE-
PARTMENT OF HEALTH AND HUMAN SERV-
ICES. 
‘‘(a) The Inspector General of the Health Choices Ad-
ministration shall—
1012 
‘‘(1) have the authority to conduct, supervise, 
and coordinate audits, evaluations, and investiga-
tions of the programs and operations of the Health 
Choices Administration established under section 
241 of the Affordable Health Care for America Act, 
including matters relating to fraud, abuse, and mis-
conduct in connection with the admission and con-
tinued participation of any health benefits plan par-
ticipating in the Health Insurance Exchange estab-
lished under section 301 of such Act; 
‘‘(2) have the authority to conduct audits, eval-
uations, and investigations relating to any private 
Exchange-participating health benefits plan, as de-
fined in section 201(c) of such Act; 
‘‘(3) have the authority, in consultation with 
the Office of Inspector General for the Department 
of Health and Human Services and subject to sub-
section (b), to conduct audits, evaluations, and in-
vestigations relating to the public health insurance 
option established under section 321 of such Act; 
and 
‘‘(4) have access to all relevant records nec-
essary to carry out this section, including records re-
lating to claims paid by Exchange-participating 
health benefits plans.
1013 
‘‘(b) Authority granted to the Health Choices Admin-
istration and the Inspector General of the Health Choices 
Administration by the Affordable Health Care for America 
Act does not limit the duties, authorities, and responsibil-
ities of the Office of Inspector General for the Department 
of Health and Human Services, as in existence as of the 
date of the enactment of the Affordable Health Care for 
America Act, to oversee programs and operations of such 
department. The Office of Inspector General for the De-
partment of Health and Human Services retains primary 
jurisdiction over fraud and abuse in connection with pay-
ments made under the public health insurance option es-
tablished under section 321 of such Act and administered 
by the Department of Health and Human Services.’’. 
(3) APPLICATION
OF
RULE
OF
CONSTRUC-
TION.—Section 8J of the Inspector General Act of 
1978 (5 U.S.C. App.) is amended by striking ‘‘or 
8H’’ and inserting ‘‘, 8H, or 8M’’. 
(c) EFFECTIVE
DATE.—The provisions of and 
amendments made by this section shall take effect on the 
date of the enactment of this Act.
1014 
Subtitle D—Access to Information 
Needed 
to 
Prevent 
Fraud, 
Waste, and Abuse 
SEC. 1651. ACCESS TO INFORMATION NECESSARY TO IDEN-
TIFY FRAUD, WASTE, AND ABUSE. 
(a) GAO ACCESS.—Subchapter II of chapter 7 of 
title 31, United States Code, is amended by adding at the 
end the following: 
‘‘§ 721. Access to certain information 
‘‘No provision of the Social Security Act shall be con-
strued to limit, amend, or supersede the authority of the 
Comptroller General to obtain any information, to inspect 
any record, or to interview any officer or employee under 
section 716 of this title, including with respect to any in-
formation disclosed to or obtained by the Secretary of 
Health and Human Services under part C or D of title 
XVIII of the Social Security Act.’’. 
(b) ACCESS TO MEDICARE PART D DATA PROGRAM 
INTEGRITY PURPOSES.— 
(1) PROVISION OF INFORMATION AS CONDITION 
OF PAYMENT.—Section 1860D–15(d)(2)(B) of the 
Social 
Security 
Act 
(42 
U.S.C. 
1395w– 
115(d)(2)(B)) is amended—
1015 
(A) by striking ‘‘may be used by officers’’ 
and all that follows through the period and in-
serting ‘‘may be used by—’’; and 
(B) by adding at the end the following 
clauses: 
‘‘(i) officers, employees, and contrac-
tors of the Department of Health and 
Human Services only for the purposes of, 
and to the extent necessary in, carrying 
out this section; and 
‘‘(ii) the Inspector General of the De-
partment of Health and Human Services, 
the Administrator of the Centers for Medi-
care & Medicaid Services, and the Attorney 
General only for the purposes of protecting 
the integrity of the programs under this 
title and title XIX; conducting the activi-
ties described in section 1893 and subpara-
graphs 
(A) 
through 
(E) 
of 
section 
1128C(a)(1); and for investigation, audit, 
evaluation, oversight, and
law enforce-
ment purposes to the extent consistent 
with applicable law.’’.
1016 
(2) GENERAL DISCLOSURE OF INFORMATION.— 
Section 1860D–15(f)(2) of the Social Security Act 
(42 U.S.C. 1395w–115(f)(2)) is amended— 
(A) by striking ‘‘may be used by officers’’ 
and all that follows through the period and in-
serting ‘‘may be used by—’’; and 
(B) by adding at the end the following sub-
paragraphs: 
‘‘(A) officers, employees, and contractors 
of the Department of Health and Human Serv-
ices only for the purposes of, and to the extent 
necessary in, carrying out this section; and 
‘‘(B) the Inspector General of the Depart-
ment of Health and Human Services, the Ad-
ministrator of the Centers for Medicare & Med-
icaid Services, and the Attorney General only 
for the purposes of protecting the integrity of 
the programs under this title and title XIX; 
conducting the activities described in section 
1893 and subparagraphs (A) through (E) of 
section 1128C(a)(1); and for investigation, 
audit, evaluation, oversight, and
law enforce-
ment purposes to the extent consistent with ap-
plicable law.’’.
1017 
SEC. 1652. ELIMINATION OF DUPLICATION BETWEEN THE 
HEALTHCARE INTEGRITY AND PROTECTION 
DATA BANK AND THE NATIONAL PRACTI-
TIONER DATA BANK. 
(a) IN GENERAL.—To eliminate duplication between 
the Healthcare Integrity and Protection Data Bank 
(HIPDB) established under section 1128E of the Social 
Security Act and the National Practitioner Data Bank 
(NPBD) established under the Health Care Quality Im-
provement Act of 1986, section 1128E of the Social Secu-
rity Act (42 U.S.C. 1320a–7e) is amended— 
(1) in subsection (a), by striking ‘‘Not later 
than’’ and inserting ‘‘Subject to subsection (h), not 
later than’’; 
(2) in the first sentence of subsection (d)(2), by 
striking ‘‘(other than with respect to requests by 
Federal agencies)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(h) SUNSET OF THE HEALTHCARE INTEGRITY AND 
PROTECTION DATA BANK; TRANSITION PROCESS.—Ef-
fective upon the enactment of this subsection, the Sec-
retary shall implement a process to eliminate duplication 
between the Healthcare Integrity and Protection Data 
Bank (in this subsection referred to as the ‘HIPDB’ es-
tablished pursuant to subsection (a) and the National
1018 
Practitioner Data Bank (in this subsection referred to as 
the ‘NPDB’) as implemented under the Health Care Qual-
ity Improvement Act of 1986 and section 1921 of this Act, 
including systems testing necessary to ensure that infor-
mation formerly collected in the HIPDB will be accessible 
through the NPDB, and other activities necessary to 
eliminate duplication between the two data banks. Upon 
the completion of such process, notwithstanding any other 
provision of law, the Secretary shall cease the operation 
of the HIPDB and shall collect information required to 
be reported under the preceding provisions of this section 
in the NPDB. Except as otherwise provided in this sub-
section, the provisions of subsections (a) through (g) shall 
continue to apply with respect to the reporting of (or fail-
ure to report), access to, and other treatment of the infor-
mation specified in this section.’’. 
(b) ELIMINATION OF THE RESPONSIBILITY OF THE 
HHS OFFICE OF THE INSPECTOR GENERAL.—Section 
1128C(a)(1) of the Social Security Act (42 U.S.C. 1320a– 
7c(a)(1)) is amended— 
(1) in subparagraph (C), by adding at the end 
‘‘and’’; 
(2) in subparagraph (D), by striking at the end 
‘‘, and’’ and inserting a period; and 
(3) by striking subparagraph (E).
1019 
(c) SPECIAL PROVISION FOR ACCESS TO THE NA-
TIONAL PRACTITIONER DATA BANK BY THE DEPART-
MENT OF VETERANS AFFAIRS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, during the one year period that be-
gins on the effective date specified in subsection 
(e)(1), the information described in paragraph (2) 
shall be available from the National Practitioner 
Data Bank (described in section 1921 of the Social 
Security Act) to the Secretary of Veterans Affairs 
without charge. 
(2) INFORMATION DESCRIBED.—For purposes 
of paragraph (1), the information described in this 
paragraph is the information that would, but for the 
amendments made by this section, have been avail-
able to the Secretary of Veterans Affairs from the 
Healthcare Integrity and Protection Data Bank. 
(d) FUNDING.—Notwithstanding any provisions of 
this Act, sections 1128E(d)(2) and 1817(k)(3) of the So-
cial Security Act, or any other provision of law, there shall 
be available for carrying out the transition process under 
section 1128E(h) of the Social Security Act over the pe-
riod required to complete such process, and for operation 
of the National Practitioner Data Bank until such process 
is completed, without fiscal year limitation—
1020 
(1) any fees collected pursuant to section 
1128E(d)(2) of such Act; and 
(2) such additional amounts as necessary, from 
appropriations available to the Secretary and to the 
Office of the Inspector General of the Department of 
Health and Human Services under clauses (i) and 
(ii), respectively, of section 1817(k)(3)(A) of such 
Act, for costs of such activities during the first 12 
months following the date of the enactment of this 
Act. 
(e) EFFECTIVE DATE.—The amendments made— 
(1) by subsection (a)(2) shall take effect on the 
first day after the Secretary of Health and Human 
Services certifies that the process implemented pur-
suant to section 1128E(h) of the Social Security Act 
(as added by subsection (a)(3)) is complete; and 
(2) by subsection (b) shall take effect on the 
earlier of the date specified in paragraph (1) or the 
first day of the second succeeding fiscal year after 
the fiscal year during which this Act is enacted. 
SEC. 1653. COMPLIANCE WITH HIPAA PRIVACY AND SECU-
RITY STANDARDS. 
The provisions of sections 262(a) and 264 of the 
Health Insurance Portability and Accountability Act of 
1996 (and standards promulgated pursuant to such sec-