(ii) by striking ‘‘State plan,’’ and in-
serting ‘‘State plan or the health benefit
plan,’’.
(2) TREBLE
DAMAGES
FOR
CRIMINAL
SANC-
TIONS.—Section 1128B of such Act (42 U.S.C.
1320a–7b) is amended by adding at the end the fol-
lowing new subsection:
‘‘(f) In addition to the fines that may be imposed
under subsection (a), (b), or (c), any individual found to
have violated the provisions of any of such subsections
may be subject to treble damages.’’.
(3) IDENTIFICATION OF COMMUNITY SERVICE
OPPORTUNITIES.—Section 1128B of such Act (42
U.S.C. 1320a–7b) is further amended by adding at
the end the following new subsection:
‘‘(g) The Secretary shall—
‘‘(1) in consultation with State and local health
care officials, identify opportunities for the satisfac-
tion of community service obligations that a court
may impose upon the conviction of an offense under
this section, and
‘‘(2) make information concerning such oppor-
tunities available to Federal and State law enforce-
ment officers and State and local health care
officials.’’.
(c) HEALTH BENEFIT PLAN DEFINED.—Section
1128 of such Act (42 U.S.C. 1320a–7) is amended by re-
designating subsection (i) as subsection (j) and by insert-
ing after subsection (h) the following new subsection:
‘‘(i) HEALTH BENEFIT PLAN DEFINED.—For pur-
poses of sections 1128A and 1128B, the term ‘health ben-
efit plan’ means a health benefit program other than the
medicare program, the medicaid program, or a State
health care program.’’.
(d) 
CONFORMING
AMENDMENT.—Section
1128(b)(8)(B)(ii) of such Act (42 U.S.C. 1320a–
7(b)(8)(B)(ii)) is amended by striking ‘‘1128A’’ and in-
serting ‘‘1128A (other than a penalty arising from a
health benefit plan, as defined in subsection (i))’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect January 1, 1995.
SEC. 103. REPORTING OF FRAUDULENT ACTIONS UNDER
MEDICARE.
(a) ESTABLISHMENT OF PROGRAM.—Not later than
1 year after the date of the enactment of this Act, the
Secretary of Health and Human Services shall establish
a program through which individuals entitled to benefits
under the medicare program may report to the Secretary
on a confidential basis (at the individual’s request) in-
stances of suspected fraudulent actions arising under the
program by providers of items and services under the pro-
gram.
(b) NOTICE TO MEDICARE BENEFICIARIES.—
(1) INCLUDED IN ANNUAL NOTICE OF BENE-
FITS.—Section 1804 of the Social Security Act (42
U.S.C. 1395b–2) is amended—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘, and’’; and
(C) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) a description of the Secretary’s program
for the reporting by individuals entitled to benefits
under this title of suspected instances of fraudulent
actions arising under the program by providers of
items and services under the program, and of infor-
mation to alert such individuals to the existence of
problems of fraud and abuse under the program.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on the first day
of the first calendar year that begins after the expi-
ration of the 1-year period that begins on the date
of the enactment of this Act.
TITLE II—REVISIONS TO CUR-
RENT SANCTIONS FOR FRAUD
AND ABUSE
SEC. 201. MANDATORY EXCLUSION FROM PARTICIPATION
IN MEDICARE AND STATE HEALTH CARE PRO-
GRAMS.
(a) INDIVIDUAL CONVICTED OF FELONY RELATING
TO FRAUD.—
(1) IN
GENERAL.—Section 1128(a) of the
Social Security Act (42 U.S.C. 1320a–7(a)) is
amended by adding at the end the following new
paragraph:
‘‘(3) 
FELONY
CONVICTION
RELATING
TO
FRAUD.—Any individual or entity that has been con-
victed, under Federal or State law, in connection
with the delivery of a health care item or service or
with respect to any act or omission in a program op-
erated by or financed in whole or in part by any
Federal, State, or local government agency, of a
criminal offense consisting of a felony relating to
fraud, theft, embezzlement, breach of fiduciary re-
sponsibility, or other financial misconduct.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1128(b)(1) of such Act (42 U.S.C. 1320a–7(b)(1))
is amended—
(A) in the heading, by striking ‘‘CONVIC-
TION’’ and inserting ‘‘MISDEMEANOR CONVIC-
TION’’; and
(B) by striking ‘‘criminal offense’’ and in-
serting ‘‘criminal offense consisting of a mis-
demeanor’’.
(b) INDIVIDUAL CONVICTED OF FELONY RELATING
TO CONTROLLED SUBSTANCE.—
(1) IN GENERAL.—Section 1128(a) of the So-
cial Security Act (42 U.S.C. 1320a–7(a)), as amend-
ed by subsection (a), is amended by adding at the
end the following new paragraph:
‘‘(4) FELONY CONVICTION RELATING TO CON-
TROLLED
SUBSTANCE.—Any individual or entity
that has been convicted, under Federal or State law,
of a criminal offense consisting of a felony relating
to the unlawful manufacture, distribution, prescrip-
tion, or dispensing of a controlled substance.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1128(b)(3) of such Act (42 U.S.C. 1320a–7(b)(3))
is amended—
(A) in the heading, by striking ‘‘CONVIC-
TION’’ and inserting ‘‘MISDEMEANOR CONVIC-
TION’’; and
(B) by striking ‘‘criminal offense’’ and in-
serting ‘‘criminal offense consisting of a mis-
demeanor’’.
SEC. 202. ESTABLISHMENT OF MINIMUM PERIOD OF EX-
CLUSION FOR CERTAIN INDIVIDUALS AND
ENTITIES SUBJECT TO PERMISSIVE EXCLU-
SION FROM MEDICARE AND STATE HEALTH
CARE PROGRAMS.
(a) IN GENERAL.—Section 1128(c)(3) of the Social
Security Act (42 U.S.C. 1320a–7(c)(3)) is amended by
adding at the end the following new subparagraphs:
‘‘(D) In the case of an exclusion of an individual or
entity under paragraph (1), (2), or (3) of subsection (b),
the period of the exclusion shall be 3 years, unless the
Secretary determines that a shorter period is appropriate
because of mitigating circumstances or that a longer pe-
riod is appropriate because of aggravating circumstances.
‘‘(E) In the case of an exclusion of an individual or
entity under subsection (b)(4) or (b)(5), the period of the
exclusion shall not be less than the period during which
the individual’s or entity’’s license to provide health care
is revoked, suspended, or surrendered.
‘‘(F) In the case of an exclusion of an individual or
entity under subsection (b)(6)(B), the period of the exclu-
sion shall be not less than 1 year.’’.