SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medicare Identity 
Theft Prevention Act of 2012’’. 
SEC. 2. PROHIBITION OF INCLUSION OF SOCIAL SECURITY 
ACCOUNT NUMBERS ON MEDICARE CARDS. 
(a) IN GENERAL.—Section 205(c)(2)(C) of the Social 
Security Act (42 U.S.C. 405(c)(2)(C)) is amended— 
(1) by moving clause (x), as added by section 
1414(a)(2) of the Patient Protection and Affordable 
Care Act, 2 ems to the left; 
(2) by redesignating clause (x), as added by 
section 2(a)(1) of the Social Security Number Pro-
tection Act of 2010, and clause (xi) as clauses (xi) 
and (xii), respectively; and 
(3) by adding at the end the following new 
clause: 
‘‘(xiii) The Secretary of Health and Human Services, 
in consultation with the Commissioner of Social Security, 
shall establish cost-effective procedures to ensure that a 
Social Security account number (or derivative thereof) is 
not displayed, coded, or embedded on the Medicare card 
issued to an individual who is entitled to benefits under 
part A of title XVIII or enrolled under part B of title 
XVIII and that any other identifier displayed on such card 
is not identifiable as a Social Security account number (or 
derivative thereof).’’.
(b) IMPLEMENTATION.—In implementing clause (xiii) 
of section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)), as added by subsection (a)(3), the 
Secretary of Health and Human Services shall establish 
a cost-effective process that involves the least amount of 
disruption to Medicare beneficiaries and health care pro-
viders. The Secretary shall consider implementing a proc-
ess, similar to the process involving Railroad Retirement 
Board beneficiaries, under which a Medicare beneficiary 
identifier which is not a Social Security account number 
(or derivative thereof) is used external to the Department 
of Health and Human Services and is convertible over to 
a Social Security account number (or derivative thereof) 
for use internal to such Department and the Social Secu-
rity Administration. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Clause (xiii) of section 
205(c)(2)(C) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)), as added by subsection (a)(3), shall 
apply with respect to Medicare cards issued on and 
after an effective date specified by the Secretary of 
Health and Human Services, but in no case shall 
such effective date be later than the date that is 3 
years after the date of the enactment of this Act. 
(2) REISSUANCE.—The Secretary—
(A) shall provide for the reissuance of 
Medicare cards that comply with the require-
ments of such clause not later than 3 years 
after the effective date specified by the Sec-
retary under paragraph (1); and 
(B) may permit an individual to apply for 
the reissuance of a Medicare card that complies 
with such requirements before the date of 
reissuance otherwise provided under subpara-
graph (A) in such exceptional circumstances as 
the Secretary may specify. 
(d) FUNDING.— 
(1) OFFSET FROM MIF.—Amounts in the Medi-
care Improvement Fund under section 1898 of the 
Social Security Act (42 U.S.C. 1395iii) that are 
available for expenditures from the Fund for services 
furnished in a fiscal year (through fiscal year 2020) 
shall be available for transfer to the Centers for 
Medicare & Medicaid Services Program Management 
Account as the Secretary of Health and Human 
Services determines necessary to offset the costs in-
curred by the Secretary (including costs under the 
agreement described in paragraph (2)(A)) in such 
fiscal year (or a previous fiscal year) in imple-
menting clause (xiii) of section 205(c)(2)(C) of such
Act (42 U.S.C. 405(c)(2)(C)), as added by sub-
section (a)(3), and this section. 
(2) AVAILABILITY OF FUNDING FOR THE SO-
CIAL SECURITY ADMINISTRATION.— 
(A) FUNDING UNDER AGREEMENT.—The 
Commissioner of Social Security and the Sec-
retary of Health and Human Services shall 
enter into and maintain an agreement which 
shall— 
(i) provide funds to the Commissioner, 
at scheduled intervals as specified in the 
agreement, for the full costs of the respon-
sibilities of the Commissioner under this 
section; and 
(ii) require an annual accounting and 
reconciliation of the actual costs incurred 
and the funds provided under the agree-
ment. 
(B) AVAILABILITY
OF
FUNDS.—Amounts 
transferred to the Centers for Medicare & Med-
icaid Services Program Management Account 
under paragraph (1) shall be available to the 
Secretary of Health and Human Services to 
carry out the agreement under subparagraph 
(A) and the Secretary shall provide funds to the
Commissioner as required under such agree-
ment. 
(e) ACCOUNTABILITY.— 
(1) ACCOUNTING
OF
EXPENDITURES.—The 
Secretary of Health and Human Services and the 
Commissioner of Social Security shall— 
(A) keep a detailed accounting of expendi-
tures associated with the implementation of 
such clause and this section; and 
(B) submit a report on such expenditures 
to the Committee on Ways and Means of the 
House of Representatives, the Committee on 
Finance of the Senate, and the Comptroller 
General of the United States, on a semi-annual 
basis, in each of fiscal years 2013 through 
2021. 
(2) AUDIT.—The Comptroller General shall 
conduct a semi-annual financial audit of the expend-
itures of the Department of Health and Human 
Services and of the Social Security Administration 
during such fiscal years in implementing such clause 
and this section. Each such audit shall include an 
examination of whether funds made available under 
subsection (d) are used solely for the purpose de-
scribed in such subsection.
SEC. 3. MEDICARE SMART CARD TECHNOLOGY STUDY AND 
REPORT. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study that examines whether the 
Medicare program should use smart card technology for 
Medicare beneficiary cards and for provider membership 
cards. 
(b) DETAILS OF STUDY.—Such study shall include 
an examination of the following: 
(1) Potential levels of provider investment re-
quired to use cards with such technology in various 
care settings. 
(2) Systems-related and implementation-related 
costs to the Medicare program to use such tech-
nology. 
(3) The extent to which private insurance com-
panies have adopted or considered such technology 
and their reasons for adoption or non-adoption of 
such technology. 
(4) The extent to which use of cards with such 
technology would— 
(A) reduce the potential for identity theft 
and other unlawful use of Medicare beneficiary 
and provider identifying information; 
(B) increase the quality of care furnished 
to Medicare beneficiaries;
(C) improve the accuracy and efficiency in 
the billing for Medicare items and services fur-
nished by Medicare providers; 
(D) reduce waste, fraud, and abuse in the 
Medicare program; and 
(E) impact the ability of Medicare bene-
ficiaries to access services. 
(c) REPORT.—Not later than 2 years after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committees on Ways and Means and En-
ergy and Commerce of the House of Representatives and 
the Committee on Finance of the Senate a report on the 
study conducted under this section. Such report may in-
clude recommendations regarding the use of smart card 
technology under the Medicare program. 
Passed the House of Representatives December 20, 
2012. 
Attest: 
Clerk.
112TH CONGRESS 
2D SESSION 
H. R. 1509 
AN ACT 
To amend title II of the Social Security Act to pro-
hibit the inclusion of Social Security account 
numbers on Medicare cards.