(B) by inserting after subparagraph (I) the
following:
‘‘(J) will reimburse the Secretary for any
amounts paid by the carrier for an item or service
under this part which is furnished by an individual
or entity during any period for which the individual
or entity is excluded, pursuant to section 1128,
1128A, or 1156, from participation in the health
care program under this title if the amounts are
paid after the 60-day period beginning on the date
the Secretary provides notice of the exclusion to the
carrier, unless the payment was made as a result of
incorrect information provided by the Secretary or
the individual or entity excluded from participation
has concealed or altered their identity; and’’.
(b) CONFORMING REPEAL OF MANDATORY PAYMENT
RULE.—Section 1862(e) of the Social Security Act (42
U.S.C. 1395y(e)) is amended—
(1) in paragraph (1)(B), by striking ‘‘and when
the person’’ and all that follows through ‘‘person)’’;
and
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) No individual or entity may bill (or collect any
amount from) any individual for any item or service for
which payment is denied under paragraph (1). No indi-
vidual is liable for payment of any amounts billed for such
an item or service in violation of the preceding sentence.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to claims for payment sub-
mitted on or after the date of enactment of this Act.
(2) CONTRACT MODIFICATION.—The Secretary
of Health and Human Services shall take such steps
as may be necessary to modify contracts and agree-
ments entered into, renewed, or extended prior to
the date of enactment of this Act to conform such
contracts or agreements to the provisions of this sec-
tion.
SEC. 6. COMMUNITY MENTAL HEALTH CENTERS.
(a) IN GENERAL.—Section 1861(ff)(3)(B) of the So-
cial Security Act (42 U.S.C. 1395x(ff)(3)(B)) is amended
by striking ‘‘entity that—’’ and all that follows and insert-
ing the following: ‘‘entity that—
‘‘(i) provides the community mental health serv-
ices specified in paragraph (1) of section 1913(c) of
the Public Health Service Act;
‘‘(ii) meets applicable certification or licensing
requirements for community mental health centers
in the State in which it is located;
‘‘(iii) provides a significant share of its services
to individuals who are not eligible for benefits under
this title; and
‘‘(iv) meets such additional standards or re-
quirements for obtaining medicare billing privileges
as the Secretary may specify to ensure—
‘‘(I) the health and safety of beneficiaries
receiving such services; or
‘‘(II) the furnishing of such services in an
effective and efficient manner.’’.
(b) RESTRICTION.—Section 1861(ff)(3)(A) of such
Act (42 U.S.C. 1395x(ff)(3)(A)) is amended by inserting
‘‘other than in an individual’s home or in an inpatient or
residential setting’’ before the period.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to items and services furnished
after the sixth month that begins after the date of enact-
ment of this Act.
SEC. 7. LIMITING THE DISCHARGE OF DEBTS IN BANK-
RUPTCY PROCEEDINGS IN CASES WHERE A
HEALTH CARE PROVIDER OR A SUPPLIER EN-
GAGES IN FRAUDULENT ACTIVITY.
(a) IN GENERAL.—
(1) CIVIL
MONETARY
PENALTIES.—Section
1128A(a) of the Social Security Act (42 U.S.C.
1320a–7a(a)) is amended by adding at the end the
following: ‘‘Notwithstanding any other provision of
law, amounts made payable under this section are
not dischargeable under section 727, 1141, 1228(a)
or (b), or 1328 of title 11, United States Code, or
any other provision of such title.’’.
(2) RECOVERY
OF
OVERPAYMENT
TO
PRO-
VIDERS
OF
SERVICES
UNDER
PART
A
OF
MEDI-
CARE.—Section 1815(d) of the Social Security Act
(42 U.S.C. 1395g(d)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(B) by adding at the end the following:
‘‘(2) Notwithstanding any other provision of law,
amounts due to the Secretary under this section are not
dischargeable under section 727, 1141, 1228(a) or (b), or
1328 of title 11, United States Code, or any other provi-
sion of such title if the overpayment was the result of
fraudulent activity, as may be defined by the Secretary.’’.
(3) RECOVERY OF OVERPAYMENT OF BENEFITS
UNDER PART B OF MEDICARE.—Section 1833(j) of
the Social Security Act (42 U.S.C. 1395l(j)) is
amended—
(A) by inserting ‘‘(1)’’ after ‘‘(j)’’; and
(B) by adding at the end the following:
‘‘(2) Notwithstanding any other provision of law,
amounts due to the Secretary under this section are not
dischargeable under section 727, 1141, 1228(a) or (b), or
1328 of title 11, United States Code, or any other provi-
sion of such title if the overpayment was the result of
fraudulent activity, as may be defined by the Secretary.’’.
(4) COLLECTION
OF
PAST-DUE
OBLIGATIONS
ARISING FROM BREACH OF SCHOLARSHIP AND LOAN
CONTRACT.—Section 1892(a) of the Social Security
Act (42 U.S.C. 1395ccc(a)) is amended by adding at
the end the following:
‘‘(5) Notwithstanding any other provision of
law, amounts due to the Secretary under this section
are not dischargeable under section 727, 1141,
1228(a) or (b), or 1328 of title 11, United States
Code, or any other provision of such title.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to bankruptcy petitions filed
after the date of enactment of this Act.
SEC. 8. ILLEGAL DISTRIBUTION OF A MEDICARE OR MED-
ICAID 
BENEFICIARY 
IDENTIFICATION 
OR
PROVIDER NUMBER.
Section 1128B(b) of the Social Security Act (42
U.S.C. 1320a–7b(b)), as amended by section 4(b), is
amended by adding at the end the following:
‘‘(5) Whoever knowingly, intentionally, and with the
intent to defraud purchases, sells or distributes, or ar-
ranges for the purchase, sale, or distribution of 2 or more
medicare or medicaid beneficiary identification numbers or
provider numbers shall be imprisoned for not more than
3 years or fined under title 18, United States Code (or,
if greater, an amount equal to the monetary loss to the
Federal and any State government as a result of such
acts), or both.’’.
SEC. 9. TREATMENT OF CERTAIN SOCIAL SECURITY ACT
CRIMES AS FEDERAL HEALTH CARE OF-
FENSES.
(a) IN GENERAL.—Section 24(a) of title 18, United
States Code, is amended—
(1) by striking the period at the end of para-
graph (2) and inserting ‘‘; or’’; and
(2) by adding at the end the following:
‘‘(3) section 1128B of the Social Security Act
(42 U.S.C. 1320a–7b).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of enactment
of this Act and apply to acts committed on or after the
date of enactment of this Act.
(3) exercise any other authority necessary to
carry out the authority described in paragraphs (1)
and (2).
(b) FUNDS.—The Office of Inspector General of the
Department of Health and Human Services may receive
and expend funds that represent the equitable share from
the forfeiture of property in investigations in which the
Office of Inspector General participated, and that are
transferred to the Office of Inspector General by the De-
partment of Justice, the Department of the Treasury, or
the United States Postal Service. Such equitable sharing
funds shall be deposited in a separate account and shall
remain available until expended.
SEC. 11. UNIVERSAL PRODUCT NUMBERS ON CLAIMS
FORMS FOR REIMBURSEMENT UNDER THE
MEDICARE PROGRAM.
(a) UPNS ON CLAIMS FORMS FOR REIMBURSEMENT
UNDER THE MEDICARE PROGRAM.—
(1) ACCOMMODATION OF UPNS ON MEDICARE
CLAIMS FORMS.—Not later than February 1, 2003,
all claims forms developed or used by the Secretary
of Health and Human Services for reimbursement
under the medicare program under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) shall
accommodate the use of universal product numbers
for a UPN covered item.
(2) REQUIREMENT FOR PAYMENT OF CLAIMS.—
Title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.) is amended by adding at the end the
following:
‘‘USE OF UNIVERSAL PRODUCT NUMBERS
‘‘SEC. 1899A. (a) IN GENERAL.—No payment shall
be made under this title for any claim for reimbursement
for any UPN covered item unless the claim contains the
universal product number of the UPN covered item.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) UPN COVERED ITEM.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘UPN covered
item’ means—
‘‘(i) a covered item as that term is de-
fined in section 1834(a)(13);
‘‘(ii) an item described in paragraph
(8) or (9) of section 1861(s);
‘‘(iii) an item described in paragraph
(5) of section 1861(s); and
‘‘(iv) any other item for which pay-
ment is made under this title that the Sec-
retary determines to be appropriate.
‘‘(B) EXCLUSION.—The term ‘UPN cov-
ered item’ does not include a customized item
for which payment is made under this title.
‘‘(2) 
UNIVERSAL
PRODUCT
NUMBER.—The
term ‘universal product number’ means a number
that is—
‘‘(A) affixed by the manufacturer to each
individual UPN covered item that uniquely
identifies the item at each packaging level; and
‘‘(B) based on commercially acceptable
identification standards such as, but not limited
to, standards established by the Uniform Code
Council-International Article Numbering Sys-
tem or the Health Industry Business Commu-
nication Council.’’.
(3) DEVELOPMENT AND IMPLEMENTATION OF
PROCEDURES.—
(A) INFORMATION
INCLUDED
IN
UPN.—
The Secretary of Health and Human Services,
in consultation with manufacturers and entities
with appropriate expertise, shall determine the
relevant descriptive information appropriate for
inclusion in a universal product number for a
UPN covered item.
(B) REVIEW OF PROCEDURE.—From the
information obtained by the use of universal
product numbers on claims for reimbursement
under the medicare program, the Secretary of
Health and Human Services, in consultation
with interested parties, shall periodically review
the UPN covered items billed under the Health
Care Financing Administration Common Proce-
dure Coding System and adjust such coding
system to ensure that functionally equivalent
UPN covered items are billed and reimbursed
under the same codes.
(4) EFFECTIVE DATE.—The amendment made
by paragraph (2) shall apply to claims for reim-
bursement submitted on and after February 1,
2003.
(b) STUDY AND REPORTS TO CONGRESS.—
(1) STUDY.—The Secretary of Health and
Human Services shall conduct a study on the results
of the implementation of the provisions in paragraph
(1) and (3) of subsection (a) and the amendment to
the Social Security Act in paragraph (2) of that sub-
section.
(2) REPORTS.—
(A) PROGRESS REPORT.—Not later than 6
months after the date of enactment of this Act,
the Secretary of Health and Human Services
shall submit a report to Congress that contains
a detailed description of the progress of the
matters studied pursuant to paragraph (1).
(B) IMPLEMENTATION.—Not later than 18
months after the date of enactment of this Act,
and annually thereafter for 3 years, the Sec-
retary of Health and Human Services shall sub-
mit a report to Congress that contains a de-
tailed description of the results of the study
conducted pursuant to paragraph (1), together
with the Secretary’s recommendations regard-
ing the use of universal product numbers and
the use of data obtained from the use of such
numbers.
(c) DEFINITIONS.—In this section:
(1) UPN COVERED
ITEM.—The term ‘‘UPN
covered item’’ has the meaning given such term in
section 1899A(b)(1) of the Social Security Act (as
added by subsection (a)(2)).
(2) UNIVERSAL PRODUCT NUMBER.—The term
‘‘universal product number’’ has the meaning given
such term in section 1899A(b)(2) of the Social Secu-
rity Act (as added by subsection (a)(2)).
(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary for the purpose of carrying out the provisions
in paragraphs (1) and (3) of subsection (a), subsection
(b), and section 1899A of the Social Security Act (as
added by subsection (a)(2)).
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