tion card does not display or electronically store, in 
an unencrypted format, a Medicare beneficiary’s So-
cial Security account number, except— 
(A) if the health insurance claim number 
of a beneficiary is the Social Security number 
of the beneficiary, the beneficiary’s spouse, or 
another individual, the Secretary may use such 
number on such card; and 
(B) if the Secretary determines that the 
risk of fraudulent use of such numbers is not 
unacceptably high, the Secretary may use a 
partial Social Security account number on a 
Medicare identification card. 
(2) COMMUNICATIONS
PROVIDED
TO
BENE-
FICIARIES.—Prohibit the display of a Medicare bene-
ficiary’s Social Security account number in any writ-
ten or electronic communication provided to the ben-
eficiary unless the Secretary, in consultation with 
the Commissioner of Social Security, determines 
that inclusion of Social Security account numbers in 
such communications is essential for the operation of 
the Medicare program. 
(c) MEDICARE BENEFICIARY DEFINED.—In this sec-
tion, the term ‘‘Medicare beneficiary’’ means an individual 
who is entitled to, or enrolled for, benefits under part A 
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of title XVIII of the Social Security Act or enrolled under 
part B of such title. 
(d) CONFORMING AMENDMENTS.— 
(1) REFERENCE
IN
THE
SOCIAL
SECURITY 
ACT.—Section 205(c)(2)(C) of the Social Security 
Act (42 U.S.C. 405(c)(2)(C)) is amended— 
(A) by moving clause (x), as added by sec-
tion 1414(a)(2) of the Patient Protection and 
Affordable Care Act (Public Law 111–148), 6 
ems to the left; 
(B) by redesignating clause (x), as added 
by section 2(a)(1) of the Social Security Num-
ber Protection Act of 2010 (42 U.S.C. 1305 
note), as clause (xii); and 
(C) by adding after clause (xii), as redesig-
nated by subparagraph (B), the following new 
clause: 
‘‘(xiii) Subject to section 7 of the Promoting Respon-
sibility in Medical Expenditures Act of 2011, social secu-
rity account numbers shall not be displayed on Medicare 
identification cards or on communications provided to 
Medicare beneficiaries.’’. 
(2) ACCESS TO INFORMATION.—Section 205(r) 
of the Social Security Act (405 U.S.C. 405(r)) is 
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amended by adding at the end the following new 
paragraph: 
‘‘(10)(A) To prevent and identify fraudulent activ-
ity— 
‘‘(i) the Attorney General or the Secretary of 
Health and Human Services may submit to the 
Commissioner a request that the Commissioner 
enter into an agreement under this paragraph; and 
‘‘(ii) subject to the requirements of subpara-
graphs (A) and (B) of paragraph (3), upon receiving 
a request under subparagraph (A), the Commis-
sioner shall enter into a reimbursable agreement 
with the individual making such request to provide 
to such individual the information collected under 
paragraph (1). 
‘‘(B) The agreement under subparagraph (A)(ii) shall 
contain appropriate provisions (as determined by the Com-
missioner) to protect the confidentiality of information 
provided by the Commissioner under such agreement.’’. 
(e) PILOT PROGRAM.— 
(1) ESTABLISHMENT.—Not later than 1 year 
after the date of the enactment of this Act, the Sec-
retary shall establish a pilot program utilizing smart 
card technology to evaluate— 
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(A) the applicability of smart card tech-
nology to the Medicare program under title 
XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.); and 
(B) whether such cards would be effective 
in preventing fraud under the Medicare pro-
gram. 
(2) SCOPE
AND
DURATION.—The Secretary 
shall conduct the pilot program— 
(A) in not less than 2 States; and 
(B) for a period of not less than 180 days 
and not more than 2 years. 
(3) REPORT.—Not later than 12 months after 
the completion of the pilot program under this sub-
section, the Secretary shall submit to the appro-
priate committees of Congress and make available to 
the public a report that includes the following: 
(A) A summary of the pilot program and 
findings resulting from such program, includ-
ing— 
(i) any costs or savings to the Medi-
care program as a result of the implemen-
tation of the pilot program; 
(ii) whether the use of smart card 
technology resulted in improvements in the 
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quality of care provided to Medicare bene-
ficiaries under the pilot program; and 
(iii) whether such technology was use-
ful in preventing or detecting fraud, waste, 
and abuse in the Medicare program. 
(B) Recommendations regarding whether 
the use of smart card technology should be ex-
panded under the Medicare program. 
(4) DEFINITIONS.—In this subsection: 
(A) MEDICARE
BENEFICIARY.—The term 
‘‘Medicare beneficiary’’ means an individual en-
titled to, or enrolled for, benefits under part A 
of title XVIII of the Social Security Act (42 
U.S.C. 1395c et seq.) or enrolled for benefits 
under part B of such title (42 U.S.C. 1395j et 
seq.). 
(B) 
MEDICARE
PROVIDER.—The 
term 
‘‘Medicare provider’’ means— 
(i) a provider of services (as defined 
in section 1861(u) of the Social Security 
Act (42 U.S.C. 1395x(u))); or 
(ii) a supplier (as defined in section 
1861(d) 
of 
such 
Act 
(42 
U.S.C. 
1395x(d))). 
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(C) SMART
CARD.—The term ‘‘smart 
card’’ means an identification card used by a 
Medicare beneficiary or a Medicare provider 
that includes antifraud attributes. Such a 
card— 
(i) may rely on existing commercial 
data transfer networks or on a network of 
proprietary card readers or databases; and 
(ii) may include— 
(I) cards using technology adapt-
ed from the financial services indus-
try; 
(II) cards containing individual 
biometric identification, provided that 
such identification is encrypted and 
not contained in any central database; 
(III) cards adapting technology 
and 
processes 
utilized 
in 
the 
TRICARE program under chapter 55 
of title 10, United States Code, or by 
the Veterans Administration; or 
(IV) such other technology as the 
Secretary determines appropriate. 
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SEC. 8. IMPROVING CLAIMS PROCESSING AND DETECTION 
OF FRAUD WITHIN THE MEDICAID AND CHIP 
PROGRAMS. 
(a) MEDICAID.—Section 1903(i) of the Social Secu-
rity Act (42 U.S.C. 1396b(i)) is amended— 
(1) in paragraph (25), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (26), by striking the period 
and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (26) the fol-
lowing paragraph: 
‘‘(27) with respect to any amount expended for 
an item or service unless the claim for payment for 
such item or service contains— 
‘‘(A) a valid beneficiary identification num-
ber for the individual to whom such item or 
service was furnished, and the State has deter-
mined that such number corresponds to an indi-
vidual who is enrolled under the State plan or 
an applicable waiver of a requirement of such 
plan; and 
‘‘(B) a valid provider identifier for the pro-
vider who furnished such item or service, and 
the State has determined that such identifier 
corresponds to a provider that is eligible to re-
ceive payment for furnishing such item or serv-
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ice under the State plan or an applicable waiver 
of a requirement of such plan.’’. 
(b) CHIP.—Section 2107(e)(1)(I) of the Social Secu-
rity Act (42 U.S.C. 1397gg(e)(1)(I)) is amended by strik-
ing ‘‘and (17)’’ and inserting ‘‘(17), and (27)’’. 
SEC. 9. GAO REPORT. 
Not later than January 1, 2013, the Comptroller 
General of the United States shall submit to the Congress 
a report that contains recommendations on methods that 
the Secretary of Health and Human Services could use 
to make Medicare claims data available to the public for 
the purpose of improving transparency within the Medi-
care program while protecting the privacy of individual 
Medicare beneficiaries, providers of services, and sup-
pliers. 
Æ 
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