I 
110TH CONGRESS 
2D SESSION 
H. R. 5757 
To amend title XIX of the Social Security Act to require asset verification 
through access to information held by financial institutions, to reduce 
fraud and abuse in State Medicaid programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 10, 2008 
Mr. DEAL of Georgia (for himself, Mr. BURGESS, Mrs. BLACKBURN, Mr. 
SHADEGG, Mr. SULLIVAN, Mr. TERRY, Mr. HALL of Texas, Mr. WEST-
MORELAND, Mr. UPTON, and Mr. GINGREY) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
A BILL 
To amend title XIX of the Social Security Act to require 
asset verification through access to information held by 
financial institutions, to reduce fraud and abuse in State 
Medicaid programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medicaid Fraud Re-
duction Act of 2008’’. 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
SEC. 2. ASSET VERIFICATION THROUGH ACCESS TO INFOR-
MATION HELD BY FINANCIAL INSTITUTIONS. 
(a) ADDITION OF AUTHORITY.—Title XIX of the So-
cial Security Act is amended by inserting after section 
1939 the following new section: 
‘‘ASSET VERIFICATION THROUGH ACCESS TO 
INFORMATION HELD BY FINANCIAL INSTITUTIONS 
‘‘SEC. 1940. (a) IMPLEMENTATION.— 
‘‘(1) IN GENERAL.—Subject to the provisions of 
this section, each State shall implement an asset 
verification program described in subsection (b), for 
purposes of determining or redetermining the eligi-
bility of an individual for medical assistance under 
the State plan under this title. 
‘‘(2) PLAN SUBMITTAL.—In order to meet the 
requirement of paragraph (1), each State shall— 
‘‘(A) submit not later than January 1, 
2009, a State plan amendment under this title 
that describes how the State intends to imple-
ment the asset verification program; and 
‘‘(B) provide for implementation of such 
program for eligibility determinations and rede-
terminations made on or after July 1, 2009. 
‘‘(b) ASSET VERIFICATION PROGRAM.— 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, an asset verification program means a program 
described in paragraph (2) under which a State— 
‘‘(A) requires each applicant for, or recipi-
ent of, medical assistance under the State plan 
under this title to provide authorization by such 
applicant or recipient (and any other person 
whose income or resources are material to the 
determination of the eligibility of the applicant 
or recipient for such assistance) for the State to 
obtain (subject to the cost reimbursement re-
quirements of section 1115(a) of the Right to 
Financial Privacy Act) from any financial insti-
tution (within the meaning of section 1101(1) 
of such Act) any financial record (within the 
meaning of section 1101(2) of such Act) held 
by the institution with respect to the applicant 
or recipient (and such other person, as applica-
ble), to permit the State to obtain such record 
whenever the State determines the record is 
needed in connection with a determination with 
respect to such eligibility for (or the amount or 
extent of) such medical assistance; and 
‘‘(B) uses the authorization provided under 
subparagraph (A) to verify the financial re-
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
sources of such applicant or recipient (and such 
other person, as applicable), in order to deter-
mine or redetermine the eligibility of such appli-
cant or recipient for medical assistance under 
the State plan. 
‘‘(2) PROGRAM
DESCRIBED.—A program de-
scribed in this paragraph is a program for verifying 
individual assets in a manner consistent with the ap-
proach used by the Commissioner of Social Security 
under section 1631(e)(1)(B)(ii). 
‘‘(c) DURATION
OF
AUTHORIZATION.—Notwith-
standing section 1104(a)(1) of the Right to Financial Pri-
vacy Act, an authorization provided to a State under sub-
section (b)(1) shall remain effective until the earliest of— 
‘‘(1) the rendering of a final adverse decision on 
the applicant’s application for medical assistance 
under the State’s plan under this title; 
‘‘(2) the cessation of the recipient’s eligibility 
for such medical assistance; or 
‘‘(3) the express revocation by the applicant or 
recipient (or such other person described in sub-
section (b)(1), as applicable) of the authorization, in 
a written notification to the State. 
‘‘(d) TREATMENT OF RIGHT TO FINANCIAL PRIVACY 
ACT REQUIREMENTS.— 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(1) An authorization obtained by the State 
under subsection (b)(1) shall be considered to meet 
the requirements of the Right to Financial Privacy 
Act for purposes of section 1103(a) of such Act, and 
need not be furnished to the financial institution, 
notwithstanding section 1104(a) of such Act. 
‘‘(2) The certification requirements of section 
1103(b) of the Right to Financial Privacy Act shall 
not apply to requests by the State pursuant to an 
authorization provided under subsection (b)(1). 
‘‘(3) A request by the State pursuant to an au-
thorization provided under subsection (b)(1) is 
deemed to meet the requirements of section 
1104(a)(3) of the Right to Financial Privacy Act 
and of section 1102 of such Act, relating to a rea-
sonable description of financial records. 
‘‘(e) REQUIRED DISCLOSURE.—The State shall in-
form any person who provides authorization pursuant to 
subsection (b)(1)(A) of the duration and scope of the au-
thorization. 
‘‘(f) REFUSAL
OR REVOCATION
OF AUTHORIZA-
TION.—If an applicant for, or recipient of, medical assist-
ance under the State plan under this title (or such other 
person described in subsection (b)(1), as applicable) re-
fuses to provide, or revokes, any authorization made by 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
the applicant or recipient (or such other person, as appli-
cable) for the State to obtain from any financial institu-
tion any financial record, the State shall, on that basis, 
determine that the applicant or recipient is ineligible for 
medical assistance. 
‘‘(g) USE OF CONTRACTOR.—For purposes of imple-
menting an asset verification program under this section, 
a State may select and enter into a contract with a public 
or private entity meeting such criteria and qualifications 
as the State determines appropriate. 
‘‘(h) TECHNICAL ASSISTANCE.—The Secretary shall 
provide States with technical assistance to aid in imple-
mentation of an asset verification program under this sec-
tion. 
‘‘(i) REPORTS.—A State implementing an asset 
verification program under this section shall furnish to the 
Secretary such reports concerning the program, at such 
times, in such format, and containing such information 
as the Secretary determines appropriate. 
‘‘(j) PAYMENT ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a State that 
submits the State plan amendment required under 
subsection (a)(2)(A) by January 1, 2009, in addition 
to any other amounts payable to the State under 
this title (and notwithstanding the limitations of 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
subsections (f) and (g) of section 1108), there shall 
be paid to the State under section 1903(a) for the 
calendar quarter beginning on such date, the 
amount of $1,000,000. 
‘‘(2) RECOVERY OF PAYMENTS FOR PROGRAMS 
NOT IMPLEMENTED BY JULY 1, 2009.—In the case of 
a State that received an additional payment under 
paragraph (1) and fails to implement the asset 
verification program by July 1, 2009, the amount 
paid to the State under such paragraph shall be sub-
ject to disallowance and recovery. 
‘‘(k) TREATMENT OF PROGRAM EXPENSES.—Not-
withstanding any other provision of law, reasonable ex-
penses of States in carrying out the program under this 
section shall be treated, for purposes of section 1903(a), 
in the same manner as State expenditures specified in 
paragraph (7) of such section.’’. 
(b) STATE PLAN REQUIREMENTS.—Section 1902(a) 
of such Act (42 U.S.C. 1396a(a)) is amended— 
(1) in paragraph (69) by striking ‘‘and’’ at the 
end; 
(2) in paragraph (70) by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (70), as so 
amended, the following new paragraph: 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(71) provide that the State will implement an 
asset verification program under section 1940.’’. 
(c) WITHHOLDING
OF FEDERAL MATCHING PAY-
MENTS FOR NONCOMPLIANT STATES.—Section 1903(i) of 
such Act (42 U.S.C. 1396b(i)) is amended— 
(1) in paragraph (22) by striking ‘‘or’’ at the 
end; 
(2) in paragraph (23) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding after paragraph (23) the fol-
lowing new paragraph: 
‘‘(24) if a State fails to implement an asset 
verification program in accordance with the require-
ments of section 1940, with respect to amounts ex-
pended by such State for medical assistance for indi-
viduals subject to asset verification under such sec-
tion, unless— 
‘‘(A) the State demonstrates to the Sec-
retary’s satisfaction that the State made a good 
faith effort to comply; 
‘‘(B) not later than 60 days after the date 
of a finding of that the State is in noncompli-
ance, the State submits to the Secretary (and 
the Secretary approves) a corrective action plan 
to remedy such noncompliance; and 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(C) not later than 12 months after the 
date of such submission (and approval), the 
State fulfills the terms of such corrective action 
plan.’’. 
(d) REPEAL.—Section 4 of Public Law 110–90 is re-
pealed. 
SEC. 3. FUNDS FOR STATES TO REDUCE MEDICAID FRAUD. 
Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended by adding at the end the following new 
subsection: 
‘‘(aa) PAYMENTS TO REDUCE FRAUD.— 
‘‘(1) PAYMENTS.—In addition to the payments 
otherwise provided under subsection (a), subject to 
paragraph (2), the Secretary shall provide for pay-
ments to eligible States under such subsection to es-
tablish and carry out practices to reduce fraud 
under the State Medicaid program under this title. 
‘‘(2) LIMITATION.—The total amount of pay-
ments under this subsection shall not exceed 
$250,000,000, and shall be available to the Sec-
retary for payments under this subsection during fis-
cal years 2009 and 2010 and during subsequent fis-
cal years in the case described in paragraph (6)(B). 
This subsection constitutes budget authority in ad-
vance of appropriations Acts and represents the obli-
VerDate Aug 31 2005 
04:38 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
gation of the Secretary to provide for the payment 
of amounts provided under this subsection. 
‘‘(3) ELIGIBILITY.—The Secretary shall provide 
for a payment to a State under paragraph (1) if 
such State— 
‘‘(A) demonstrates to the satisfaction of 
the Secretary a need for assistance to reduce 
fraud under the State Medicaid program; 
‘‘(B) provides an effective proposal to re-
duce such fraud; and 
‘‘(C) satisfies any other criteria specified 
by the Secretary. 
‘‘(4) FORM AND MANNER OF PAYMENT.—Pay-
ment to a State under this subsection shall be made 
only upon the submission to the Secretary of such 
application in such form and in such manner as the 
Secretary shall specify. Payment to a State under 
this subsection shall be made in the same manner as 
other payments under subsection (a). There is no re-
quirement for State matching funds to receive pay-
ments under this subsection. 
‘‘(5) NOTIFICATION.—The Secretary shall pro-
vide for States to be notified of the opportunity to 
receive payments under this subsection as soon as 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
feasible after the date of the enactment of this sub-
section, but not later than April 1, 2009. 
‘‘(6) 
AVAILABILITY
OF
PAYMENTS
TO 
STATES.— 
‘‘(A) IN GENERAL.—Payment to a State 
under this subsection shall be available to the 
State during the period provided in the ap-
proved proposal of the State provided under 
paragraph (3). 
‘‘(B) RECOVERY AND REUSE OF MISSPENT 
FUNDS.—Amounts paid to a State under this 
subsection that are expended in a manner in-
consistent with the approved proposal of the 
State under paragraph (3) are subject to dis-
allowance and recovery. Insofar as such 
amounts are so disallowed and recovered such 
amounts shall be made available to other States 
under this subsection. 
‘‘(7) REPORTS.—Each State receiving payment 
under this subsection shall submit to the Secretary 
a reports on the impact of the practices carried out 
with such payment on the reduction of fraud under 
the State Medicaid program, as specified by the Sec-
retary.’’. 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
SEC. 4. FUNDS TO REDUCE MEDICAID FRAUD AND ABUSE. 
(a) IN GENERAL.—For purposes of reducing fraud 
and abuse in the Medicaid program under title XIX of 
the Social Security Act, there is appropriated to the Sec-
retary of Health and Human Services, out of any money 
in the Treasury not otherwise appropriated, $25,000,000, 
for fiscal year 2009 and each subsequent fiscal year, to 
be equally divided between the Office of the Inspector Gen-
eral of the Department of Health and Human Services 
and the Center for Medicaid and State Operations of the 
Centers for Medicare & Medicaid Services. Amounts ap-
propriated under this section shall remain available for ex-
penditure until expended and shall be in addition to any 
other amounts appropriated or made available to the Of-
fice of Inspector General or the Center for Medicaid and 
State Operations for activities of such Office or Center, 
respectively, with respect to the Medicaid program. 
(b) ANNUAL REPORT.—Not later than September 30 
of 2009 and of each subsequent year, the Secretary of 
Health and Human Services shall submit to the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives and the Committee on Finance of the Senate 
a report on the activities (and the results of such activi-
ties) funded under subsection (a) to reduce fraud and 
abuse in the Medicaid program under title XIX of the So-
cial Security Act during the previous 12 month period, in-
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
cluding the amount of funds appropriated under such sub-
section (a) for each such activity and an estimate of the 
savings to the Medicaid program resulting from each such 
activity. 
SEC. 5. ELECTRONIC VERIFICATION OF PROPERTY TRANS-
FERS. 
(a) REPORT.—Not later than July 1, 2009, the Sec-
retary of Health and Human Services shall submit to the 
Committee on Energy and Commerce of the House of 
Representatives and the Committee on Finance of the 
Senate a report that— 
(1) examines the feasibility of implementing a 
system under which transfers of assets, particularly 
real property, of applicants and recipients of medical 
assistance under State plans under title XIX of the 
Social Security Act are verified electronically for 
purposes of carrying out section 1917(c) of such Act 
(42 U.S.C. 1396p(c)); and 
(2) estimates the potential savings to the Med-
icaid program under such title from requiring States 
to implement such a system. 
(b) AUTHORIZED IMPLEMENTATION.—If the Sec-
retary of Health and Human Services determines, based 
on the report under subsection (a), that it would be fea-
sible and cost-effective to implement a system described 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
in paragraph (1) of such subsection, the Secretary is au-
thorized to require States in their State plans under title 
XIX of the Social Security Act to implement such a sys-
tem. For purposes of meeting such requirement, a State 
may select and enter into a contract with a public or pri-
vate entity. 
SEC. 6. DISALLOWANCE OF EXPENSES ASSOCIATED WITH 
CERTAIN CONSULTANTS. 
(a) WITHHOLDING OF FEDERAL MATCHING PAY-
MENTS FOR NONCOMPLIANT STATES.—Section 1903(i) of 
the Social Security Act (42 U.S.C. 1396b(i)), as amended 
by section 2(c) of this Act, is amended— 
(1) in paragraph (23) by striking ‘‘or’’ at the 
end; 
(2) in paragraph (24) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding after paragraph (24) the fol-
lowing new paragraph: 
‘‘(25) with respect to amounts expended by 
such State— 
‘‘(A) other than for compensation of a 
State employee or payment to an entity that is 
part of a State government, for the purpose of 
increasing the amount of payments made to the 
State under this title; and 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(B) for some or all (as determined by the 
Secretary) of any additional amounts of Federal 
payments to the State that the Secretary deter-
mines are attributable to expenditures described 
in subparagraph (A).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to expenditures de-
scribed in subparagraph (A) of section 1903(i)(25) of the 
Social Security Act, as added by subsection (a), made on 
or after October 1, 2008, regardless of whether such ex-
penditures were pursuant to contracts or arrangements 
entered into before, on, or after such date. 
SEC. 7. STATE INTERNET-BASED TRANSPARENCY PRO-
GRAMS UNDER MEDICAID. 
Title XIX of the Social Security Act, as amended by 
section 2(a) is further amended by inserting after section 
1940 the following new section: 
‘‘SEC. 1941. STATE INTERNET-BASED TRANSPARENCY PRO-
GRAMS. 
‘‘(a) IN GENERAL.—Not later than July 1, 2009, 
subject to subsection (h), each of the 50 States and the 
District of Columbia shall submit a State plan amendment 
described in subsection (b) to create an Internet-based 
transparency program for purposes of improving public 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
disclosure of information relating to payments made under 
the State plan under this title. 
‘‘(b) ELIGIBLE STATE PLAN AMENDMENT.—A State 
plan amendment described in this subsection is a State 
plan amendment that provides for the following: 
‘‘(1) PROGRAM DESCRIBED.—A program under 
which the State discloses through a publicly acces-
sible Internet site the following information: 
‘‘(A) The name of each hospital, nursing 
facility, outpatient surgery center, intermediate 
care facility for the mentally retarded, institu-
tion for mental diseases, that receives payment 
under this title for the provision of health care 
items and services, and, at the option of the 
State, such other health care provider (such as 
a physician) that receives payment under this 
title for the provision of health care items and 
services. 
‘‘(B) The total amount of payments made 
under this title to each entity described in sub-
paragraph (A). 
‘‘(C) The amount of dollars paid per pa-
tient to each such entity. 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(2) IMPLEMENTATION DATE.—The implemen-
tation of such a program described in paragraph (1) 
by January 1, 2010. 
‘‘(c) USE OF CONTRACTOR.—For purposes of imple-
menting an Internet-based transparency program, a State 
or the District of Columbia may select and enter into a 
contract with a public or private entity meeting such cri-
teria and qualifications as the State determines appro-
priate. 
‘‘(d) BONUS PAYMENT FOR TIMELY SUBMISSION OF 
STATE PLAN AMENDMENTS.— 
‘‘(1) IN GENERAL.—In the case of a State that 
submits the State plan amendment under subsection 
(a) by July 1, 2009, in addition to any other 
amounts payable to the State under this title there 
shall be paid to the State under section 1903(a) for 
the calendar quarter beginning on such date the 
amount of $1,000,000. 
‘‘(2) RECOVERY OF PAYMENTS FOR PROGRAMS 
NOT IMPLEMENTED BY JANUARY 1, 2010.—In the 
case of a State that received an additional payment 
under paragraph (1) and that fails to implement an 
Internet-based transparency program by January 1, 
2010, the amount paid to the State under such 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
paragraph shall be subject to disallowance and re-
covery. 
‘‘(e) INCENTIVES
FOR IMPLEMENTATION.—If the 
Secretary determines that one of the 50 State or the Dis-
trict of Columbia has not implemented an Internet-based 
transparency program for any day after January 1, 2010, 
the Secretary shall reduce the amount paid to the State 
or the District of Columbia, respectively, under section 
1903(a) by $25,000 for each such day. Such reduction 
shall be made unless— 
‘‘(1) the State or the District of Columbia, re-
spectively, demonstrates to the Secretary’s satisfac-
tion that the State made a good faith effort to have 
such a program implemented; 
‘‘(2) not later than 60 days after the date of a 
finding that the State or the District of Columbia, 
respectively, has not implemented such a program, 
the State or the District of Columbia, respectively, 
submits to the Secretary (and the Secretary ap-
proves) a corrective action plan to implement such 
a program; and 
‘‘(3) not later than 12 months after the date of 
such submission (and approval), the State or the 
District of Columbia, respectively, fulfills the terms 
of such corrective action plan. 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
‘‘(f) TECHNICAL ASSISTANCE.—The Secretary shall 
provide States with technical assistance to aid in imple-
mentation of an Internet-based transparency program. 
‘‘(g) REPORTS.—A State implementing an Internet- 
based transparency program under this section shall fur-
nish to the Secretary such reports concerning the pro-
gram, at such times, in such format, and containing such 
information as the Secretary determines appropriate. 
‘‘(h) TREATMENT OF COMMONWEALTHS AND TERRI-
TORIES.—A commonwealth or territory may, but is not re-
quired to, submit a State plan amendment described in 
subsection (b) to create an Internet-based transparency 
program under this section. Payment under subsection (e) 
shall not be counted against payment limitations imposed 
under subsection (f) and (g) of section 1108. 
‘‘(i) INTERNET-BASED
TRANSPARENCY
PROGRAM 
DEFINED.—For purposes of this section, the term ‘Inter-
net-based transparency program’ means the program de-
scribed in subsection (b)(1).’’. 
SEC. 8. PERMITTING LIMITATIONS, RESTRICTIONS, AND 
SUSPENSIONS OF MEDICAID ELIGIBILITY IN 
CASES OF FRAUD. 
(a) IN GENERAL.—Section 1128B(a) of the Social 
Security Act (42 U.S.C. 1320a–7b(a)) is amended by add-
ing at the end the following sentence: ‘‘In addition, in any 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS
case where an individual who is otherwise eligible for med-
ical assistance under a State Medicaid program under title 
XIX is convicted of an offense of fraud or abuse, relating 
to such program, under State law or is the subject of a 
Federal or State civil court judgment or administrative 
agency decision based on fraud or abuse relating to such 
program, the Director of the State Medicaid program may 
at the option of the Director (notwithstanding any other 
provision of such program) limit, restrict, or suspend the 
eligibility of that individual, with respect to such program, 
for such period (not exceeding 10 years) as the Director 
deems appropriate and the Administrator of the Centers 
of Medicare & Medicaid Services may at the option of the 
Administrator (notwithstanding any other provision of 
such program) deny payment under section 1903(a) for 
any amounts expended as medical assistance with respect 
to such individual for such period (not exceeding 10 years) 
as the Administrator deems appropriate; but the imposi-
tion of a limitation, restriction, suspension, or denial with 
respect to the eligibility of any individual under this sen-
tence shall not affect the eligibility of any other person 
for assistance under the program, regardless of the rela-
tionship between that individual and such other person.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to convictions, judgments, and 
VerDate Aug 31 2005 
03:36 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5757.IH
H5757
smartinez on PRODPC60 with BILLS