I
105TH CONGRESS
2D SESSION
H. R. 4317
To provide for a pilot program for the use of optical memory cards under
the Medicare and Medicaid Programs.
IN THE HOUSE OF REPRESENTATIVES
JULY 23, 1998
Mr. ANDREWS introduced the following bill; which was referred to the Com-
mittee on Commerce, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To provide for a pilot program for the use of optical memory
cards under the Medicare and Medicaid Programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PILOT PROGRAM FOR THE USE OF OPTICAL
MEMORY CARDS UNDER THE MEDICARE AND
MEDICAID PROGRAMS.
(a) IN GENERAL.—The Administrator of the Health
Care Financing Administration shall provide for a pilot
program to examine the use of optical memory cards for
the storage of identification and medical records informa-
tion on medicare and medicaid beneficiaries. Such pro-
gram shall specifically examine the impact of the use of
such cards—
(1) on reducing waste, fraud, and abuse under
the medicare and medicaid programs, and
(2) on savings in costs under such programs as
a result of greater efficiencies in the storage and re-
trieval of information.
The pilot program shall be conducted in at least 8, but
not more than 10, hospitals and health care centers lo-
cated in the area of Southern New Jersey and Eastern
Pennsylvania, to be selected jointly by the Administrator
and the grantee operating the program. Hospitals and
centers participating in the program shall be provided at
no cost with computer readers to store and retrieve data
on the card. The pilot program shall operate for a 1 year
period.
(b) REPORT.—Within 90 days after the date of the
completion of the pilot program, the Administrator shall
submit to Congress a report on the success or failure of
the pilot program under this section. Such report shall in-
clude such recommendations on the continued and ex-
panded use of optical memory cards under the medicare
and medicaid programs as the Administrator deems ap-
propriate.
(c) AUTHORIZATION OF APPROPRIATION.—There are
authorized to be appropriated $1,000,000 to carry out the
pilot program under this section. Amounts appropriated
under this subsection shall remain available until ex-
pended. Of the amount appropriated to carry out the pro-
gram—
(1) $850,000 shall be available for the costs of
manufacturing and distributing optical memory
cards, and
(2) $150,000 shall be available for the distribu-
tion of the computer readers to hospitals and health
care centers participating in the pilot program and
for training costs in such hospitals and centers.
(d) OPTICAL MEMORY CARD DEFINED.—For pur-
poses of this section, the term ‘‘optical memory card‘’
means a card which—
(1) is approximately the size of a credit card or
driver’s license;
(2) serves as identification of a patient and
stores medical data on the patient in electronic form;
(3) identifies the patient through a photograph
of the patient on the front of the card, as well as
a photograph and finger print in electronic form
stored within the data on the card; and