[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2417 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2417

To amend the Social Security Act to fight fraud by hospitals under the 
               Medicare Program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 5, 1997

 Mr. Kennedy of Rhode Island introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Social Security Act to fight fraud by hospitals under the 
               Medicare Program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fight Hospital Fraud in Medicare Act 
of 1997''.

SEC. 2. RANDOM INVESTIGATIONS.

    The Secretary of Health and Human Services shall devise plans, in 
consultation with Federal, State, and local law enforcement officials, 
for random investigations of hospitals for potential violations of law 
under the Medicare Program.

SEC. 3. EDUCATIONAL PROGRAM TO PROMOTE COMPLIANCE.

    (a) Establishment of Program.--The Administrator of the Health Care 
Financing Administration shall establish a program to educate hospitals 
on compliance with regulations applicable under the Medicare Program.
    (b) Emphasize.--The education program shall emphasize methods of 
reducing noncompliance and unnecessary litigation and simplifying 
paperwork.
    (c) Administration Through Local Offices.--The program shall be 
administered, to the extent practicable, through regional offices of 
the Administrator.

SEC. 4. GAO REPORT ON ABUSES BY FOR-PROFIT HOSPITALS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the extent to which fines, settlements, and 
overpayments under the Medicare Program are associated with for-profit 
hospitals.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the study conducted under subsection (a).

SEC. 5. FEES FOR HOSPITALS AGREEMENTS.

    (a) In General.--Section 1866 of the Social Security Act (42 U.S.C. 
1395cc) is amended by adding at the end the following new subsection:
    ``(j)(1) The Secretary is authorized to impose fees for initiation 
and renewal of provider agreements with hospitals, in amounts up to the 
full amount which the Secretary reasonably estimates to be sufficient 
to cover the Secretary's costs related to the process for initiating 
and reviewing such agreements. Fees collected pursuant to this 
paragraph shall be credited to a special fund of the United States 
Treasury, and shall remain available until expended, to the extent and 
in such amounts as provided in advance in appropriations acts, for 
necessary expenses for these purposes, including costs of establishing 
and maintaining procedures and records systems; processing 
applications; and background investigations.
    ``(2) The Secretary shall impose the fees described in paragraph 
(1) with respect to for-profit hospitals.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on date of enactment of this Act and section 1866(j)(2) 
shall apply to agreements as of January 1, 1998.

SEC. 6. FEES AND REQUIREMENTS FOR ISSUANCE OF STANDARD HEALTH CARE 
              IDENTIFIERS.

    Section 1173(b) of the Social Security Act (42 U.S.C. 1320d-2(b)) 
is amended by adding after paragraph (2) the following new paragraph:
            ``(3) Fees.--
                    ``(A) In general.--The Secretary may impose fees 
                for issuing such identifiers with respect to health 
                care providers that are hospitals, in amounts which the 
                Secretary reasonably estimates to be sufficient to 
                cover all costs to the Secretary associated with such 
                activity.
                    ``(B) Requirement for for-profit hospitals.--The 
                Secretary shall impose fees under subparagraph (A) with 
                respect to any entity that is a for-profit hospital.
                    ``(C) Application of amounts.--Fees collected 
                pursuant to this paragraph shall be credited to a 
                special fund of the United States Treasury, and shall 
                remain available until expended, to the extent and in 
                such amounts as provided in advance in appropriations 
                acts, for costs incurred by the Secretary in issuing 
                such identifiers, including costs of establishing and 
                maintaining an automated database and procedures; 
                processing applications; and verifying information 
                provided.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and section 
1173(b)(3)(B) of the Social Security Act, as added by such amendment, 
shall apply to the issuance of identifiers on and after January 1, 
1998.
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