section 1860D–2(e)(2)(C) of the Social Security 
Act (42 U.S.C. 1395w–102(e)(2)(C)). 
(b) LIMITING
ACCESS
TO
NATIONAL
PROVIDER 
IDENTIFIER REGISTRY.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services, in consultation with the Attorney 
General, the Inspector General of the Department of 
Health and Human Services, the Chairman of the 
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 the fraudulent 
use of National Provider Identifiers for purposes of 
making claims under titles XVIII and XIX of the 
Social Security Act. 
(2) ACCESS.— 
(A) IN GENERAL.—The procedures estab-
lished under paragraph (1) shall provide gov-
ernmental and nongovernmental entities with 
appropriate (as determined by the Secretary) 
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access to the National Provider Identifier Reg-
istry. 
(B) DATA USE AGREEMENTS.—In order to 
receive such access, each such governmental 
and nongovernmental entity shall enter into a 
data use agreement with the Secretary and 
agree to use the data in such registry in accord-
ance with rules established by the Secretary 
pursuant such paragraph. 
SEC. 6. ENCOURAGING THE ESTABLISHMENT OF STATE 
PRESCRIPTION 
DRUG 
MONITORING 
PRO-
GRAMS. 
(a) IN GENERAL.—Section 1905 of the Social Secu-
rity Act (42 U.S.C. 1396d) is amended by adding at the 
end the following: 
‘‘(ee) INCENTIVES FOR STATES TO IDENTIFY FRAUD 
THROUGH STATE PRESCRIPTION DRUG MONITORING 
PROGRAMS.— 
‘‘(1) IN GENERAL.—With respect to a calendar 
quarter, the Federal medical assistance percentage 
for the amounts under clauses (i) and (II) of sub-
paragraph (C) shall be decreased by 10 percent for 
such quarter, if— 
‘‘(A) a State is receiving a grant for a 
State controlled substance monitoring program 
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under section 399O of the Public Health Serv-
ice Act (or the Secretary determines that the 
State meets the requirements for such a grant); 
‘‘(B) through such program, the State 
identifies fraud, waste, or abuse in connection 
the provision of prescription drug coverage 
under the State plan; and 
‘‘(C) the State or a political subdivision of 
the State— 
‘‘(i) is reimbursed an amount by a 
third party (pursuant to the provisions of 
the State plan in compliance with section 
1902(a)(25)) for expenditures related to 
such fraud, waste, or abuse; or 
‘‘(ii) recovered (as such term is used 
under section 1903(d)(3)(A)) an amount. 
‘‘(2) USE OF FUNDS.—A State may use the 
amounts received as a result of the increased Fed-
eral medical assistance percentage under paragraph 
(1) to support the State controlled substance moni-
toring program established by the State.’’. 
(b) CONFORMING AMENDMENTS.—Section 1905(b) 
of the Social Security Act (42 U.S.C. 1396d(b)) is amend-
ed by striking ‘‘Subject to subsections (y), (z), and (aa)’’ 
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and inserting ‘‘Subject to subsections (y), (z), (aa), and 
(ee)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to calendar quarters beginning 
on or after the end of the 30-day period after the date 
of the enactment of this Act. 
SEC. 7. 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 (referred to in this section as the ‘‘Sec-
retary’’), acting in consultation with the Commissioner of 
Social Security, shall establish and implement procedures 
to eliminate the unnecessary collection, use, and display 
of Social Security account numbers of Medicare bene-
ficiaries under the Medicare program under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.). 
(b) NEWLY ISSUED MEDICARE CARDS AND COMMU-
NICATIONS PROVIDED
TO BENEFICIARIES.—Not later 
than 4 years after the date of the enactment of this Act, 
the Secretary shall do the following: 
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(1) NEWLY
ISSUED
CARDS.—Acting in con-
sultation with the Commissioner of Social Security, 
ensure that each newly issued Medicare identifica-
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. 
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