II 111th CONGRESS 1st Session S. 1521 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.

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.

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.