[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1521 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1521

  To amend titles XVIII and XIX of the Social Security Act to require 
provider payments under Medicare and Medicaid to be made through direct 
   deposit or electronic funds transfer (EFT) at insured depository 
                             institutions.


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                   IN THE SENATE OF THE UNITED STATES

                             July 28, 2009

 Ms. Klobuchar (for herself and Mr. Martinez) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend titles XVIII and XIX of the Social Security Act to require 
provider payments under Medicare 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Medicare-Medicaid Payment 
Policy for Reimbursement through Oversight and Efficiency Act of 2009'' 
or the ``IMPROVE Act of 2009''.

SEC. 2. REQUIRING PROVIDER AND SUPPLIER PAYMENTS UNDER MEDICARE AND 
              MEDICAID TO BE MADE THROUGH DIRECT DEPOSIT OR ELECTRONIC 
              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 provider 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 
services' or supplier's account, as applicable, at a depository 
institution (as defined in section 19(b)(1)(A) of the Federal 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 subsection (a) for 
expenditures made by the State for payment for items and services 
furnished by a provider or supplier of items or services under this 
title if each payment by the State to the provider or supplier is in 
the form of direct deposit or electronic funds transfer to the 
provider's or supplier's account, as applicable, at a depository 
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 provider of services, provider, or 
supplier on or after such date (not later than 60 days after the date 
of the enactment 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.
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