tracts with entities. Such contracts shall be sep-
arate from any contract to serve as a medicare 
administrative 
contractor 
under 
section 
1874A.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to contracts entered into on or 
after the date that is 24 months after the date of enact-
ment of this Act and to current contracts through modi-
fication when practicable. 
SEC. 
403. 
DEVELOPING 
MEASURABLE 
PERFORMANCE 
METRICS FOR MEDICARE CONTRACTORS. 
(a) REPORT.—Not later than 12 months after the 
date of enactment of this Act, the Secretary of Health and 
Human Services (in this section referred to as the ‘‘Sec-
retary’’) shall submit to Congress a report containing 
measurable metrics for improving Medicare contractor 
performance, including Medicare administrative contrac-
tors under section 1874A of the Social Security Act (42 
U.S.C. 1395kk), program safeguard contractors and other 
similar contractors, Medicare Drug Integrity Contractors, 
qualified independent contractors with a contract under 
section 1869(c) of the Social Security Act (42 U.S.C. 
1395ff(c)), and other contractors that perform adminis-
trative or oversight functions under the Medicare program 
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under title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.). 
(b) CONTENTS OF REPORT.—The report submitted 
under subsection (a) shall include the Secretary’s rec-
ommendations for the development of measurable per-
formance metrics for Medicare contractors (or updated 
and revised measurable performance metrics), together 
with recommendations for such legislation and administra-
tive action as the Secretary considers appropriate. 
(c) RELATIONSHIP TO GOVERNMENT PERFORMANCE 
AND RESULTS ACT.—The metrics submitted in the report 
under subsection (a) may include performance goals or 
performance indicators established under the provisions of 
and amendments made by the GPRA Modernization Act 
of 2010 (Public Law 111–352). 
(d) REVIEW BY THE COMPTROLLER GENERAL.—Not 
later than 270 days after the date on which the report 
is submitted under subsection (a), the Comptroller Gen-
eral of the United States shall submit to Congress a report 
containing a review of the report submitted under such 
subsection. 
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TITLE V—OTHER PROVISIONS 
SEC. 501. STRENGTHENING PENALTIES FOR THE ILLEGAL 
DISTRIBUTION OF A MEDICARE, MEDICAID, 
OR CHIP BENEFICIARY IDENTIFICATION OR 
BILLING PRIVILEGES. 
Section 1128B(b) of the Social Security Act (42 
U.S.C. 1320a–7b(b)) is amended by adding at the end the 
following: 
‘‘(4) Whoever knowingly, intentionally, and with 
the intent to defraud purchases, sells or distributes, 
or arranges for the purchase, sale, or distribution of 
a Medicare, Medicaid, or CHIP beneficiary identi-
fication number or billing privileges under title 
XVIII, title XIX, or title XXI, including a provider 
identifier, shall be imprisoned for not more than 10 
years or fined not more than $500,000 ($1,000,000 
in the case of a corporation), or both.’’. 
SEC. 502. PROVIDING IMPLEMENTATION FUNDING. 
(a) IN GENERAL.—For purposes of carrying out the 
provisions of and amendments made by this Act, in addi-
tion to funds otherwise available, there are appropriated 
to the Secretary of Health and Human Services for the 
Centers for Medicare & Medicaid Services Program Man-
agement Account, from amounts in the general fund of 
the Treasury not otherwise appropriated, $75,000,000 for 
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the period of fiscal years 2012 through 2016. Amounts 
appropriated under the preceding sentence shall remain 
available until expended. 
(b) REVISION
TO
THE MEDICARE IMPROVEMENT 
FUND.—Section 1898(b)(1)(B) of the Social Security Act 
(42 U.S.C. 1395iii(b)(1)(B)) is amended by striking 
‘‘$275,000,000’’ and inserting ‘‘$200,000,000’’. 
Æ 
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