‘‘(i) procedures for determining the 
validity of National Provider Identifiers 
under subparagraph (A); and 
‘‘(ii) procedures for transferring to 
the Inspector General of the Department 
of Health and Human Services and appro-
priate law enforcement agencies and other 
oversight entities information on those Na-
tional Provider Identifiers and pharmacy 
claims, including records related to such 
claims, that the Secretary determines are 
invalid under clause (i). 
‘‘(C) REPORT.—Not later than January 1, 
2014, the Inspector General of the Department 
of Health and Human Services shall submit to 
Congress a report on the effectiveness of the 
procedures established under subparagraph 
(B).’’. 
(b) LIMITING
ACCESS
TO
NATIONAL
PROVIDER 
IDENTIFIER REGISTRY.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services (in this subsection referred to as 
the ‘‘Secretary’’), in consultation with the Attorney 
General, the Inspector General of the Department of 
Health and Human Services, the Chairman of the 
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Federal Trade Commission, and affected parties (in-
cluding prescription drug plans under part D of title 
XVIII of the Social Security Act (42 U.S.C. 1395w– 
101 et seq.), MA–PD plans under part C of title 
XVIII of the Social Security Act (42 U.S.C. 1395w– 
21 et seq.), pharmacies, physicians, and pharmacy 
computer vendors), shall establish procedures and 
rules to restrict access to the National Provider 
Identifier Registry in order to deter its fraudulent 
use. 
(2) ACCESS.—The procedures established under 
paragraph (1) shall provide governmental and non- 
governmental entities, as appropriate, access to such 
Registry under data use agreements and in accord-
ance with rules established by the Secretary under 
such paragraph. 
SEC. 102. ENCOURAGING THE ESTABLISHMENT OF STATE 
PRESCRIPTION 
DRUG 
MONITORING 
PRO-
GRAMS. 
(a) IN GENERAL.—Title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.) is amended by adding at 
the end the following new section: 
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‘‘SEC. 1947. ENCOURAGING THE ESTABLISHMENT OF STATE 
PRESCRIPTION 
DRUG 
MONITORING 
PRO-
GRAMS. 
‘‘(a) IN GENERAL.—To encourage the establishment 
and use of a State Prescription Drug Monitoring Pro-
gram, notwithstanding sections 1905(b) and 1927(g), and 
for purposes of paragraphs (2)(B) and (3)(A) of section 
1903(d), if a State has established a State Prescription 
Drug Monitoring Program that has been certified as meet-
ing the requirements under subsection (b), with respect 
to any amounts recovered by or paid to a State subsequent 
to the date of such certification that are related to an over-
payment due to fraud, waste, or abuse in connection the 
provision of covered services under the State plan, the 
Federal medical assistance percentage with respect to such 
amounts shall be decreased by 10 percentage points. A 
State may use such amounts recovered by or paid to the 
State to support the State Prescription Drug Monitoring 
Program established by the State. 
‘‘(b) REQUIREMENTS.—For purposes of subsection 
(a), the requirements of this subsection are that the Attor-
ney General certifies to the Secretary that the State has 
established a State Prescription Drug Monitoring Pro-
gram. In making a certification under the preceding sen-
tence, the Attorney General shall take into consideration 
requirements with respect to Prescription Drug Moni-
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toring Programs under the Harold Rogers Prescription 
Drug Monitoring Program administered by the Depart-
ment of Justice or the National All Schedules Prescription 
Electronic Reporting program administered by the De-
partment of Health and Human Services. 
‘‘(c) COMMISSION TO EXAMINE INTEROPERABILITY 
AND OTHER RELATED ISSUES.— 
‘‘(1) ESTABLISHMENT.—The Secretary and the 
Attorney General shall jointly establish a Commis-
sion (in this subsection referred to as the ‘Commis-
sion’) to examine interoperability and other issues 
related to State Prescription Drug Monitoring Pro-
grams, including— 
‘‘(A) best practices with respect to uniform 
electronic formats for the reporting, sharing, 
and disclosure of information under such Pro-
grams; and 
‘‘(B) the ability to interface with such Pro-
grams. 
‘‘(2) MEMBERSHIP.—The Commission shall be 
composed of the following members: 
‘‘(A) The Secretary. 
‘‘(B) The Attorney General. 
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‘‘(C) The heads of other appropriate agen-
cies (as determined jointly by the Secretary and 
the Attorney General). 
‘‘(D) Stakeholders appointed jointly by the 
Secretary and the Attorney General. 
‘‘(3) NO COMPENSATION OF MEMBERS.— 
‘‘(A) 
NON-FEDERAL
EMPLOYEES.—A 
member of the Commission who is not an offi-
cer or employee of the Federal Government 
shall serve without compensation. 
‘‘(B) FEDERAL
EMPLOYEES.—A member 
of the Commission who is an officer or em-
ployee of the Federal Government shall serve 
without compensation in addition to the com-
pensation received for the services of the mem-
ber as an officer or employee of the Federal 
Government. 
‘‘(4) DURATION.—The Commission shall termi-
nate on the date that is 3 years after the date of the 
enactment of the Medicare and Medicaid Fighting 
Fraud and Abuse to Save Taxpayers’ Dollars Act.’’. 
(b) INCLUSION
OF
PRESCRIPTION
DRUG
MONI-
TORING PROGRAMS IN MEDICARE PART D OVERSIGHT.— 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Health and Human Services 
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shall submit to Congress a plan on how Medicare part D 
oversight contractors and other oversight activities under 
part D of title XVIII of the Social Security Act (42 U.S.C. 
1395w–101 et seq.) can utilize State Prescription Drug 
Monitoring Programs. 
SEC. 103. UPDATING OF DEA DATABASE OF CONTROLLED 
SUBSTANCES PROVIDERS. 
(a) IN GENERAL.— 
(1) UPDATING
BASED
ON
DEATH
MASTER 
FILE.—Not less frequently than on a daily basis, the 
Attorney General shall update the database of the 
Drug Enforcement Agency of persons registered to 
manufacture, distribute, or dispense a controlled 
substance under part C of title II of the Controlled 
Substances Act (21 U.S.C. 821 et seq.) to reflect 
any changes in the information in the Death Master 
File of the Social Security Administration. 
(2) UPDATING BASED ON OTHER INFORMATION 
REPORTED TO THE SOCIAL SECURITY ADMINISTRA-
TION.—The Attorney General shall enter into an 
agreement with the Commissioner of Social Security 
to obtain information regarding deaths reported to 
the Commissioner, including death information re-
ported to the Commissioner under section 205(r) of 
the Social Security Act (42 U.5.C. 405(r)), in order 
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to update the database of the Drug Enforcement 
Agency of persons registered to manufacture, dis-
tribute, or dispense a controlled substance under 
part C of title II of the Controlled Substances Act 
(21 U.S.C. 821 et seq.) to reflect any deaths re-
ported to the Commissioner of Social Security. The 
Attorney General shall take any actions required by 
the agreement with the Commissioner to maintain 
the confidentiality of such data and to assure that 
the data is used solely for the purposes of this para-
graph. 
(b) LIMITING ACCESS TO DEA DATABASE OF REG-
ISTRANTS.— 
(1) IN
GENERAL.—The Attorney General, in 
consultation with the Secretary of Health and 
Human Services, the Inspector General of the De-
partment of Health and Human Services, the Chair-
man of the Federal Trade Commission, and affected 
parties (including prescription drug plans under part 
D of title XVIII of the Social Security Act (42 
U.S.C. 1395w–101 et seq.), MA–PD plans under 
part C of title XVIII of the Social Security Act (42 
U.S.C. 1395w–21 et seq.), pharmacies, physicians, 
and pharmacy computer vendors), shall establish 
procedures and rules to restrict access to the data-
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base of the Drug Enforcement Agency of persons 
registered to manufacturer, distribute, or dispense a 
controlled substance under part C of title II of the 
Controlled Substances Act (21 U.S.C. 821 et seq.) 
in order to deter its fraudulent use. 
(2) ACCESS.—The procedures established under 
paragraph (1) shall provide governmental and non- 
governmental entities, as appropriate, access to such 
database under data use agreements and in accord-
ance with rules established by the Attorney General 
under such paragraph. 
(c) REVIEW AND INVESTIGATION OF INVALID DEA 
REGISTRATION NUMBERS.—The Attorney General, in 
consultation with the Secretary of Health and Human 
Services, the Inspector General of the Department of 
Health and Human Services, the Chairman of the Federal 
Trade Commission, and affected parties (including pre-
scription drug plans under part D of title XVIII of the 
Social Security Act (42 U.S.C. 1395w–101 et seq.), MA– 
PD plans under part C of title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395w–21 et seq.), pharmacies, physi-
cians, and pharmacy computer vendors), shall establish 
procedures and rules to review and investigate pharmacy 
claims under such part D that contain a registration num-
ber that was not assigned by the Attorney General under 
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the Controlled Substances Act (21 U.S.C. 801 et seq.) to 
a practitioner (as defined in section 102 of such Act (21 
U.S.C. 802)). Such procedures shall include the matching 
of National Provider Identifiers submitted under section 
1860D–4(c)(4) of the Social Security Act, as added by 
section 101(a), to such registration numbers and the in-
vestigation of such registration numbers that are matched 
to a National Provider Identifier determined to be invalid 
under such section. 
(d) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Attorney General should include in the up-
dates required under subsection (a) any other information 
determined relevant by the Attorney General, such as in-
formation from State Medical Boards. 
TITLE II—CURBING IMPROPER 
PAYMENTS 
SEC. 201. ADDRESSING VULNERABILITIES IDENTIFIED BY 
RECOVERY AUDIT CONTRACTORS. 
Section 1893(h) of the Social Security Act (42 U.S.C. 
1395ddd(h)) is amended— 
(1) in paragraph (1)(C), by inserting ‘‘and for 
provider education and overpayment appeals’’ before 
the period; 
(2) in paragraph (8)— 
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(A) by striking ‘‘REPORT.—The Secretary’’ 
and inserting ‘‘REPORT.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), the Secretary’’; and 
(B) by adding after subparagraph (A), as 
inserted by subparagraph (A), the following new 
subparagraphs: 
‘‘(B) INCLUSION OF IMPROPER PAYMENT 
VULNERABILITIES
IDENTIFIED.—Each report 
submitted under subparagraph (A) shall, sub-
ject to subparagraph (C), include— 
‘‘(i) a description of— 
‘‘(I) the types and financial cost 
to the program under this title of im-
proper payment vulnerabilities identi-
fied by recovery audit contractors 
under this subsection; and 
‘‘(II) how the Secretary is ad-
dressing 
such 
improper 
payment 
vulnerabilities; and 
‘‘(ii) an assessment of the effective-
ness of changes made to payment policies 
and procedures under this title in order to 
address the vulnerabilities so identified. 
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‘‘(C) LIMITATION.—The Secretary shall 
ensure that each report submitted under sub-
paragraph (A) does not include information 
that the Secretary determines would be sen-
sitive or would otherwise negatively impact pro-
gram integrity.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(10) 
ADDRESSING
IMPROPER
PAYMENT 
VULNERABILITIES.—The Secretary shall address im-
proper payment vulnerabilities identified by recovery 
audit contractors under this subsection in a timely 
manner.’’. 
SEC. 202. IMPROVING SENIOR MEDICARE PATROL AND 
FRAUD REPORTING REWARDS. 
(a) IN GENERAL.—The Secretary shall develop a 
plan, including suggested legislative changes to implement 
such plan, under which the Secretary shall revise the bene-
ficiary incentive program under section 203(b) of the 
Health Insurance Portability and Accountability Act of 
1996 (42 U.S.C. 1395b–5(b)) to encourage greater par-
ticipation by individuals to report fraud and abuse in the 
Medicare program. Such plan shall include recommenda-
tions for ways to enhance rewards for individuals report-
ing under the incentive program, including providing a 
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monetary reward prior to the full recovery of an overpay-
ment. 
(b) PUBLIC AWARENESS
AND EDUCATION CAM-
PAIGN.—The plan developed under subsection (a) shall 
also require the Secretary to use the Senior Medicare Pa-
trols authorized under section 411 of the Older Americans 
Act of 1965 (42 U.S.C. 3032) to conduct a public aware-
ness and education campaign to encourage participation 
in the revised beneficiary incentive program under sub-
section (a). 
(c) SUBMISSION OF PLAN.—Not later than 180 days 
after the date of enactment of this Act, the Secretary shall 
submit to Congress the plan developed under subsection 
(a). 
(d) DEFINITIONS.—In this section: 
(1) 
MEDICARE
BENEFICIARY.—The 
term 
‘‘Medicare beneficiary’’ means an individual entitled 
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.). 
(2) MEDICARE PROGRAM.—The term ‘‘Medicare 
program’’ means the program under title XVIII of 
the Social Security Act (42 U.S.C. 1395 et seq.). 
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(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
SEC. 203. PROHIBITING THE DISPLAY OF SOCIAL SECURITY 
ACCOUNT 
NUMBERS 
ON 
NEWLY 
ISSUED 
MEDICARE 
IDENTIFICATION 
CARDS 
AND 
COMMUNICATIONS PROVIDED TO MEDICARE 
BENEFICIARIES. 
(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this Act, the Secretary of Health and 
Human Services, in consultation with the Commissioner 
of Social Security, shall establish and begin to implement 
procedures to eliminate the unnecessary collection, use, 
and display of Social Security account numbers of Medi-
care beneficiaries. 
(b) NEWLY ISSUED MEDICARE CARDS AND COMMU-
NICATIONS PROVIDED TO BENEFICIARIES.— 
(1) NEWLY ISSUED CARDS.— 
(A) IN GENERAL.—Not later than 4 years 
after the date of enactment of this Act, the Sec-
retary of Health and Human Services, in con-
sultation with the Commissioner of Social Secu-
rity, shall ensure that each newly issued Medi-
care identification card meets the requirements 
described in subparagraph (B). 
(B) REQUIREMENTS.— 
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(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), the requirements described in 
this subparagraph are, with respect to a 
Medicare identification card, that the card 
does not display or electronically store (in 
an unencrypted format) a Medicare bene-
ficiary’s Social Security account number. 
(ii) EXCEPTION.—The Secretary may 
waive the requirements under clause (i) in 
the case where the health insurance claim 
number of a beneficiary is the Social Secu-
rity number of the beneficiary’s spouse or 
of another individual. 
(iii) USE OF PARTIAL ACCOUNT NUM-
BER.—The 
Secretary 
of 
Health 
and 
Human Services, in consultation with the 
Commissioner of Social Security, may pro-
vide for the use of a partial Social Security 
account number on a Medicare identifica-
tion card if the Secretary determines that 
such use does not allow an unacceptable 
risk of fraudulent use. 
(2) COMMUNICATIONS
PROVIDED
TO
BENE-
FICIARIES.—Not later than 4 years after the date of 
enactment of this Act, the Secretary of Health and 
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Human Services shall prohibit the display of a Medi-
care beneficiary’s Social Security account number on 
written or electronic communication provided to the 
beneficiary unless the Secretary, in consultation with 
the Commissioner of Social Security, determines 
that inclusion of Social Security account numbers on 
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 
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 
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(C) by adding after clause (xii), as redesig-
nated by subparagraph (B), the following new 
clause: 
‘‘(xiii) Subject to section 203 of the Medicare and 
Medicaid Fighting Fraud and Abuse to Save Taxpayers’ 
Dollars Act, social security account numbers shall not be 
displayed on Medicare identification cards or on commu-
nications provided to Medicare beneficiaries.’’. 
(2) ACCESS TO INFORMATION.—Section 205(r) 
of the Social Security Act (405 U.S.C. 405(r)) is 
amended by adding at the end the following new 
paragraph: 
‘‘(10) To prevent and identify fraudulent activity, the 
Commissioner shall upon the request of the Attorney Gen-
eral or upon the request of the Secretary of Health and 
Human Services enter into a reimbursable agreement with 
the Attorney General or the Secretary to provide informa-
tion collected under paragraph (1) if— 
‘‘(A) the requirements of subparagraphs (A) 
and (B) of paragraph (3) are met; and 
‘‘(B) such agreement includes appropriate pro-
visions to protect the confidentiality of information 
provided by the Commissioner under such agree-
ment.’’. 
(e) PILOT PROGRAM.— 
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