I 
111TH CONGRESS 
1ST SESSION H. R. 3369 
To amend titles XVIII and XIX of the Social Security Act to require provider 
and supplier payments under Medicare and Medicaid to be made through 
direct deposit or electronic funds transfer (EFT) at insured depository 
institutions. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2009 
Mr. PATRICK J. MURPHY of Pennsylvania (for himself and Mr. ARCURI) intro-
duced the following bill; which was referred to the Committee on Energy 
and Commerce, and in addition to the Committee on Ways and Means, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend titles XVIII and XIX of the Social Security Act 
to require provider and supplier payments under Medi-
care and Medicaid to be made through direct deposit 
or electronic funds transfer (EFT) at insured depository 
institutions. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘IMPROVE Act’’. 
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SEC. 2. REQUIRING PROVIDER AND SUPPLIER PAYMENTS 
UNDER MEDICARE AND MEDICAID TO BE 
MADE THROUGH DIRECT DEPOSIT OR ELEC-
TRONIC FUNDS TRANSFER (EFT) AT INSURED 
DEPOSITORY INSTITUTIONS. 
(a) MEDICARE.—Section 1874 of the Social Security 
Act (42 U.S.C. 1395kk) is amended by adding at the end 
the following new subsection: 
‘‘(e) LIMITATION ON PAYMENT TO PROVIDERS OF 
SERVICES AND SUPPLIERS.—No payment shall be made 
under this title for items and services furnished by a pro-
vider of services or supplier unless each payment to the 
provider of services or supplier is in the form of direct 
deposit or electronic funds transfer to the provider of serv-
ices’ or supplier’s account, as applicable, at a depository 
institution (as defined in section 19(b)(1)(A) of the Fed-
eral Reserve Act (12 U.S.C. 461(b)(1)(A))).’’. 
(b) MEDICAID.—Section 1903(d) of such Act (42 
U.S.C. 1396b(d)) is amended by adding at the end the 
following new paragraph: 
‘‘(7) Payment shall be made to a State under sub-
section (a) for expenditures made by the State for pay-
ment for items and services furnished by a provider or 
supplier of items or services under this title if each pay-
ment by the State to the provider or supplier is in the 
form of direct deposit or electronic funds transfer to the 
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provider’s or supplier’s account, as applicable, at a deposi-
tory institution (as defined in section 19(b)(1)(A) of the 
Federal Reserve Act (12 U.S.C. 461(b)(1)(A))).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to each payment made to a pro-
vider of services, provider, or supplier on or after such 
date (not later than 60 days after the date of the enact-
ment of this Act) as the Secretary of Health and Human 
Services shall specify, regardless of when the items and 
services for which such payment is made were furnished. 
Æ 
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