or entity as a result of a background check con-
ducted under this section shall be reported to the
health integrity protection database established
under section 1128E in accordance with the proce-
dures for reporting final adverse actions taken
against a health care provider, supplier, or practi-
tioner under that section.’’.
(c) REGULATIONS; EFFECTIVE DATE.—
(1) REGULATIONS.—Not later than 1 year after
the date of enactment of this Act, the Secretary of
Health and Human Services shall promulgate such
regulations as are necessary to implement the
amendments made by subsections (a) and (b).
(2) EFFECTIVE DATE.—The amendments made
by subsections (a) and (b) shall apply to applications
received by the Secretary of Health and Human
Services on or after January 1, 2002.
(d) USE
OF
MEDICARE
INTEGRITY
PROGRAM
FUNDS.—The Secretary of Health and Human Services
may use funds appropriated or transferred for purposes
of carrying out the medicare integrity program established
under section 1893 of the Social Security Act (42 U.S.C.
1395ddd) to carry out the provisions of sections 1897 and
1898 of that Act (as added by subsections (a) and (b)).
SEC. 3. REGISTRATION OF BILLING AGENCIES.
(a) REGISTRATION OF BILLING AGENCIES AND INDI-
VIDUALS.—Title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) (as amended by section 2(b)) is
amended by adding at the end the following:
‘‘REGISTRATION OF BILLING AGENCIES AND INDIVIDUALS
‘‘SEC. 1899. (a) REGISTRATION.—The Secretary
shall establish procedures for the registration of all appli-
cable persons.
‘‘(b) REQUIRED APPLICATION.—Each applicable per-
son shall submit a registration application to the Secretary
at such time, in such manner, and accompanied by such
information as the Secretary may require.
‘‘(c) IDENTIFICATION NUMBER.—If the Secretary ap-
proves an application submitted under subsection (b), the
Secretary shall assign a unique identification number to
the applicable person.
‘‘(d) REQUIREMENT.—Every claim for reimburse-
ment under this title that is compiled and submitted by
an applicable person shall contain the identification num-
ber that is assigned to the applicable person pursuant to
subsection (c).
‘‘(e) TIMELY REVIEW.—The Secretary shall provide
for procedures that ensure the timely consideration and
determination regarding approval of applications under
this section.
‘‘(f) DEFINITION OF APPLICABLE PERSON.—In this
section, the term ‘applicable person’ means an individual
or an entity that compiles and submits claims for reim-
bursement under this title to the Secretary on behalf of
any individual or entity.’’.
(b) PERMISSIVE EXCLUSION.—Section 1128(b) of
the Social Security Act (42 U.S.C. 1320a–7(b)) is amend-
ed by adding at the end the following:
‘‘(16) FRAUD BY APPLICABLE PERSON.—An ap-
plicable person (as defined in section 1899(f)) that
the Secretary determines knowingly submitted or
caused to be submitted a claim for reimbursement
under title XVIII that the applicable person knows
or should know is false or fraudulent.’’.
(c) REGULATIONS; EFFECTIVE DATE.—
(1) REGULATIONS.—Not later than 1 year after
the date of enactment of this Act, the Secretary of
Health and Human Services shall promulgate such
regulations as are necessary to implement the
amendment made by subsections (a) and (b).
(2) EFFECTIVE DATE.—The amendment made
by subsections (a) and (b) shall take effect on Janu-
ary 1, 2002.
SEC. 4. EXPANDED ACCESS TO THE HEALTH INTEGRITY
PROTECTION DATABASE (HIPDB).
(a) IN GENERAL.—Section 1128E(d)(1) of the Social
Security Act (42 U.S.C. 1320a–7e(d)(1)) is amended to
read as follows:
‘‘(1) AVAILABILITY.—The information in the
database maintained under this section shall be
available to—
‘‘(A) Federal and State government agen-
cies and health plans, and any health care pro-
vider, supplier, or practitioner entering an em-
ployment or contractual relationship with an in-
dividual or entity who could potentially be the
subject of a final adverse action, where the con-
tract involves the furnishing of items or services
reimbursed by 1 or more Federal health care
programs (regardless of whether the individual
or entity is paid by the programs directly, or
whether the items or services are reimbursed di-
rectly or indirectly through the claims of a di-
rect provider); and
‘‘(B) utilization and quality control peer
review organizations and accreditation entities
as defined by the Secretary, including but not
limited to organizations described in part B of
this title and in section 1154(a)(4)(C).’’.
(b) CRIMINAL PENALTY FOR MISUSE OF INFORMA-
TION.—Section 1128B(b) of the Social Security Act (42
U.S.C. 1320a–7b(b)) is amended by adding at the end the
following:
‘‘(4) Whoever knowingly uses information maintained
in the health integrity protection database maintained in
accordance with section 1128E for a purpose other than
a purpose authorized under that section shall be impris-
oned for not more than 3 years or fined under title 18,
United States Code, or both.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of enactment of
this Act.
SEC. 5. LIABILITY OF MEDICARE CARRIERS AND FISCAL
INTERMEDIARIES FOR CLAIMS SUBMITTED
BY EXCLUDED PROVIDERS.
(a) REIMBURSEMENT
TO
THE
SECRETARY
FOR
AMOUNTS PAID TO EXCLUDED PROVIDERS.—
(1) 
REQUIREMENTS
FOR
FISCAL
INTER-
MEDIARIES.—
(A) IN GENERAL.—Section 1816 of the So-
cial Security Act (42 U.S.C. 1395h) is amended
by adding at the end the following:
‘‘(m) An agreement with an agency or organization
under this section shall require that such agency or orga-
nization reimburse the Secretary for any amounts paid by
the agency or organization for a service under this title
which is furnished by an individual or entity during any
period for which the individual or entity is excluded, pur-
suant to section 1128, 1128A, or 1156, from participation
in the health care program under this title if the amounts
are paid after the 60-day period beginning on the date
the Secretary provides notice of the exclusion to the agen-
cy or organization, unless the payment was made as a re-
sult of incorrect information provided by the Secretary or
the individual or entity excluded from participation has
concealed or altered their identity.’’.
(B) CONFORMING
AMENDMENT.—Section
1816(i) of the Social Security Act (42 U.S.C.
1395h(i)) is amended by adding at the end the
following:
‘‘(4) Nothing in this subsection shall be construed to
prohibit reimbursement by an agency or organization pur-
suant to subsection (m).’’.
(2) REQUIREMENTS
FOR
CARRIERS.—Section
1842(b)(3) of the Social Security Act (42 U.S.C.
1395u(b)(3)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (I); and