SEC. 8. ILLEGAL DISTRIBUTION OF A MEDICARE OR MED-
ICAID 
BENEFICIARY 
IDENTIFICATION 
OR 
PROVIDER NUMBER. 
Section 1128B(b) of the Social Security Act (42 
U.S.C. 1320a–7b(b)), as amended by section 4(b), is 
amended by adding at the end the following: 
‘‘(5) Whoever knowingly, intentionally, and with the 
intent to defraud purchases, sells or distributes, or ar-
ranges for the purchase, sale, or distribution of two or 
more medicare or medicaid beneficiary identification num-
bers or provider numbers shall be imprisoned for not more 
than three years or fined under title 18, United States 
Code (or, if greater, an amount equal to the monetary loss 
to the Federal and any State government as a result of 
such acts), or both.’’. 
SEC. 9. TREATMENT OF CERTAIN SOCIAL SECURITY ACT 
CRIMES AS FEDERAL HEALTH CARE OF-
FENSES. 
(a) IN GENERAL.—Section 24(a) of title 18, United 
States Code, is amended— 
(1) by striking the period at the end of para-
graph (2) and inserting ‘‘; or’’; and 
(2) by adding at the end the following: 
‘‘(3) section 1128B of the Social Security Act 
(42 U.S.C. 1320a–7b).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act and apply to acts committed on or after 
the date of the enactment of this Act. 
SEC. 10. AUTHORITY OF OFFICE OF INSPECTOR GENERAL 
OF 
THE 
DEPARTMENT 
OF 
HEALTH 
AND 
HUMAN SERVICES. 
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, upon designation by the Inspector General of 
the Department of Health and Human Services, any 
criminal investigator of the Office of Inspector General of 
such department may, in accordance with guidelines 
issued by the Secretary of Health and Human Services 
and approved by the Attorney General, while engaged in 
activities within the lawful jurisdiction of such Inspector 
General— 
(1) obtain and execute any warrant or other 
process issued under the authority of the United 
States; 
(2) make an arrest without a warrant for— 
(A) any offense against the United States 
committed in the presence of such investigator; 
or 
(B) any felony offense against the United 
States, if such investigator has reasonable cause 
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to believe that the person to be arrested has 
committed or is committing that felony offense; 
and 
(3) exercise any other authority necessary to 
carry out the authority described in paragraphs (1) 
and (2). 
(b) FUNDS.—The Office of Inspector General of the 
Department of Health and Human Services may receive 
and expend funds that represent the equitable share from 
the forfeiture of property in investigations in which the 
Office of Inspector General participated, and that are 
transferred to the Office of Inspector General by the De-
partment of Justice, the Department of the Treasury, or 
the United States Postal Service. Such equitable sharing 
funds shall be deposited in a separate account and shall 
remain available until expended. 
SEC. 11. UNIVERSAL PRODUCT NUMBERS ON CLAIMS 
FORMS FOR REIMBURSEMENT UNDER THE 
MEDICARE PROGRAM. 
(a) UPNS ON CLAIMS FORMS FOR REIMBURSEMENT 
UNDER THE MEDICARE PROGRAM.— 
(1) ACCOMMODATION OF UPNS ON MEDICARE 
CLAIMS FORMS.—Not later than February 1, 2008, 
all claims forms developed or used by the Secretary 
of Health and Human Services for reimbursement 
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under the medicare program under title XVIII of the 
Social Security Act (42 U.S.C. 1395 et seq.) shall 
accommodate the use of universal product numbers 
for a UPN covered item. 
(2) REQUIREMENT FOR PAYMENT OF CLAIMS.— 
Title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) is amended by adding at the end the 
following: 
‘‘USE OF UNIVERSAL PRODUCT NUMBERS 
‘‘SEC. 1899B. (a) IN GENERAL.—No payment shall 
be made under this title for any claim for reimbursement 
for any UPN covered item unless the claim contains the 
universal product number of the UPN covered item. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) UPN COVERED ITEM.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘UPN covered 
item’ means— 
‘‘(i) a covered item as that term is de-
fined in section 1834(a)(13); 
‘‘(ii) an item described in paragraph 
(8) or (9) of section 1861(s); 
‘‘(iii) an item described in paragraph 
(5) of section 1861(s); and 
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‘‘(iv) any other item for which pay-
ment is made under this title that the Sec-
retary determines to be appropriate. 
‘‘(B) EXCLUSION.—The term ‘UPN cov-
ered item’ does not include a customized item 
for which payment is made under this title. 
‘‘(2) 
UNIVERSAL
PRODUCT
NUMBER.—The 
term ‘universal product number’ means a number 
that is— 
‘‘(A) affixed by the manufacturer to each 
individual UPN covered item that uniquely 
identifies the item at each packaging level; and 
‘‘(B) based on commercially acceptable 
identification standards such as, but not limited 
to, standards established by the Uniform Code 
Council-International Article Numbering Sys-
tem or the Health Industry Business Commu-
nication Council.’’. 
(3) DEVELOPMENT AND IMPLEMENTATION OF 
PROCEDURES.— 
(A) INFORMATION
INCLUDED
IN
UPN.— 
The Secretary of Health and Human Services, 
in consultation with manufacturers and entities 
with appropriate expertise, shall determine the 
relevant descriptive information appropriate for 
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inclusion in a universal product number for a 
UPN covered item. 
(B) REVIEW OF PROCEDURE.—From the 
information obtained by the use of universal 
product numbers on claims for reimbursement 
under the medicare program, the Secretary of 
Health and Human Services, in consultation 
with interested parties, shall periodically review 
the UPN covered items billed under the Health 
Care Financing Administration Common Proce-
dure Coding System and adjust such coding 
system to ensure that functionally equivalent 
UPN covered items are billed and reimbursed 
under the same codes. 
(4) EFFECTIVE DATE.—The amendment made 
by paragraph (2) shall apply to claims for reim-
bursement submitted on and after February 1, 
2008. 
(b) STUDY AND REPORTS TO CONGRESS.— 
(1) STUDY.—The Secretary of Health and 
Human Services shall conduct a study on the results 
of the implementation of the provisions in paragraph 
(1) and (3) of subsection (a) and the amendment to 
the Social Security Act in paragraph (2) of that sub-
section. 
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(2) REPORTS.— 
(A) PROGRESS REPORT.—Not later than 
six months after the date of the enactment of 
this Act, the Secretary of Health and Human 
Services shall submit to Congress a report that 
contains a detailed description of the progress 
of the matters studied pursuant to paragraph 
(1). 
(B) IMPLEMENTATION.—Not later than 18 
months after the date of the enactment of this 
Act, and annually thereafter for three years, the 
Secretary of Health and Human Services shall 
submit to Congress a report that contains a de-
tailed description of the results of the study 
conducted pursuant to paragraph (1), together 
with the Secretary’s recommendations regard-
ing the use of universal product numbers and 
the use of data obtained from the use of such 
numbers. 
(c) DEFINITIONS.—In this section: 
(1) UPN COVERED
ITEM.—The term ‘‘UPN 
covered item’’ has the meaning given such term in 
section 1899B(b)(1) of the Social Security Act (as 
added by subsection (a)(2)). 
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(2) UNIVERSAL PRODUCT NUMBER.—The term 
‘‘universal product number’’ has the meaning given 
such term in section 1899B(b)(2) of the Social Secu-
rity Act (as added by subsection (a)(2)). 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary for the purpose of carrying out the provisions 
in paragraphs (1) and (3) of subsection (a), subsection 
(b), and section 1899B of the Social Security Act (as 
added by subsection (a)(2)). 
Æ 
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