[Congressional Record (Bound Edition), Volume 154 (2008), Part 16]
[House]
[Pages 22749-22751]
[From the U.S. Government Publishing Office, www.gpo.gov]




             MEDICARE IDENTITY THEFT PREVENTION ACT OF 2008

  Mr. DOGGETT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6600) to amend title II of the Social Security Act to 
prohibit the inclusion of Social Security account numbers on Medicare 
cards, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6600

       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 ``Medicare Identity Theft 
     Prevention Act of 2008''.

     SEC. 2. PROHIBITION OF INCLUSION OF SOCIAL SECURITY ACCOUNT 
                   NUMBERS ON MEDICARE CARDS.

       (a) In General.--Section 205(c)(2)(C) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at 
     the end the following new clause:
       ``(x) The Secretary of Health and Human Services, in 
     consultation with the Commissioner of Social Security, shall 
     establish cost-effective procedures to ensure that a social 
     security account number (or any derivative thereof) is not 
     displayed, coded, or embedded on the Medicare card issued to 
     an individual who is entitled to benefits under part A of 
     title XVIII or enrolled under part B of title XVIII and that 
     any other identifier displayed on such card is easily 
     identifiable as not being the social security account number 
     (or a derivative thereof).''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply with respect to Medicare cards issued on and after an 
     effective date specified by the Secretary of Health and Human 
     Services, but in no case shall such effective date be later 
     than the date that is 24 months after the date adequate 
     funding is provided pursuant to subsection (d)(2).
       (2) Reissuance.--Subject to subsection (d)(2), in the case 
     of individuals who have been issued such cards before such 
     date, the Secretary of Health and Human Services--
       (A) shall provide for the reissuance for such individuals 
     of such a card that complies with such amendment not later 
     than 3 years after the effective date specified under 
     paragraph (1); and
       (B) may permit such individuals to apply for the reissuance 
     of such a card that complies with such amendment before the 
     date of reissuance otherwise provided under subparagraph (A) 
     in such exceptional circumstances as the Secretary may 
     specify.
       (c) Outreach Program.--Subject to subsection (d)(2), the 
     Secretary of Health and Human Services, in consultation with 
     the Commissioner of Social Security, shall conduct an 
     outreach program to Medicare beneficiaries and providers 
     about the new Medicare card provided under this section.
       (d) Report to Congress and Limitations on Effective Date.--
       (1) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services, acting through the Administrator of the Centers for 
     Medicare & Medicaid Services and in consultation with the 
     Commissioner of Social Security, shall submit to Congress a 
     report that includes detailed options regarding the 
     implementation of this section, including line-item estimates 
     of and justifications for the costs associated with such 
     options and estimates of timeframes for each stage of 
     implementation. In recommending such options, the Secretary 
     shall take into consideration, among other factors, cost-
     effectiveness and beneficiary outreach and education.
       (2) Limitation; modification of deadlines.--With respect to 
     the amendment

[[Page 22750]]

     made by subsection (a), and the requirements of subsections 
     (b) and (c)--
       (A) such amendment and requirements shall not apply until 
     adequate funding is appropriated pursuant to paragraph (3) to 
     implement the provisions of this section, as determined by 
     Congress; and
       (B) any deadlines otherwise established under this section 
     for such amendment and requirements are contingent upon the 
     receipt of adequate funding (as determined in subparagraph 
     (A)) for such implementation.
       (3) Authorization of appropriations.--
       (A) In general.--In addition to any amounts made available 
     to the Secretary of Health and Human Services for the Program 
     Management Account of the Centers for Medicare & Medicaid 
     Services for administrative expenses and to the Commissioner 
     of Social Security for administrative expenses, and subject 
     to subparagraph (B), taking into consideration the report 
     submitted under paragraph (1), there is authorized to be 
     appropriated such sums as are necessary to carry out the 
     provisions of this section, including section 205(c)(2)(C) of 
     the Social Security Act, as added by subsection (a), for each 
     of the five fiscal years beginning after the date of 
     submittal of the report under paragraph (1).
       (B) Limitation.--Such funds are not authorized to be 
     appropriated until after receipt of the report provided under 
     paragraph (1).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Doggett) and the gentleman from Texas (Mr. Sam Johnson) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. Doggett).
  Mr. DOGGETT. Thank you, Mr. Speaker. It is an all-Texas act this 
afternoon, but it's about a measure that affects seniors and 
individuals with disabilities all over this country.


                             General Leave

  Mr. DOGGETT. Let me first ask unanimous consent that Members have 5 
legislative days in which to revise and extend their remarks and to add 
any extraneous material in the Record concerning H.R. 6600, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. DOGGETT. Mr. Speaker, I yield myself such time as I may consume.
  There are 44 million seniors and individuals with disabilities who 
carry in their wallets or in their purses something that makes them 
unnecessarily more vulnerable to identity theft, and that is their 
Medicare cards. Apart from the Social Security card, itself, the 
Medicare card is the most frequently issued government document 
displaying a Social Security number. This practice invites foul play.
  To protect both the savings and the peace of mind of Medicare 
beneficiaries, I've introduced with the assistance and the 
encouragement of my colleague from Texas, the ranking member on the 
Social Security Subcommittee, Mr. Johnson, the Medicare Identity Theft 
Prevention Act. This bipartisan legislation would require Medicare to 
take the steps that private companies and that other government 
agencies have already taken to protect the identities of our seniors.
  Every time a senior or an individual with a disability hands over a 
Medicare card, that person is handing over the keys of financial 
security. With increasingly sophisticated thefts by identity thieves, 
inaction is unacceptable. Seniors have saved and have built over their 
lifetimes their financial security and their reputations.

                              {time}  1500

  Their savings and their credit should not be put needlessly at risk 
if someone steals their Medicare card. Just as a doctor swears an oath 
to do no harm in practicing medicine, Medicare should make sure that it 
does no harm to the financial security and credit rating of its 
beneficiaries. The Medicare Identity Theft Prevention Act will help to 
ensure that the government better protects seniors from identity theft, 
denying thieves access to this critical data.
  The private sector and government agencies, including the Veterans 
Administration and the Department of Defense, have begun to protect 
Social Security numbers from identity thieves. But Medicare has not yet 
taken appropriate steps to do this, hence this legislation.
  Inaction jeopardizes the safety of millions of our seniors and 
individuals with disabilities. This legislation has the support of the 
Consumers Union, the National Committee to Preserve Social Security and 
Medicare, the National Silver-Haired Congress, and the Texas Silver-
Haired Legislature, as well as the Elder Justice Coalition.
  Seniors confront many threats to their retirement security these 
days. This bill is one way to prevent their falling victim to 
swindlers. I urge the adoption of the bill.
  I reserve the balance of my time.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I rise in support of the bill 
H.R. 6600, the Medicare Identity Prevention Act. I thank Mr. Doggett 
for bringing it up. Apparently we can't get any resolution on Social 
Security so we need to do it one baby step at a time.
  Americans are rightly worried about the security of their personal 
information, including their Social Security number. Practically every 
day we hear about another data breach in the private or public sector 
where identity information of hundreds, if not thousands, of people is 
stolen.
  According to the Privacy Rights Clearinghouse, the total number of 
known records that have been compromised since January 2005 is over 158 
million. Even though Social Security numbers were created to track 
earnings for determining benefit amounts under Social Security, these 
numbers are now unfortunately widely used as personal identifiers.
  According to the Government Accountability Office, Social Security 
numbers have become the ``identifier of choice'' and are used for all 
sorts of business transactions. In an April 2007 report, the 
President's Identity Theft Task Force identified the Social Security 
number as the most valuable commodity for an identity thief.
  These thieves are hard at work. The Federal Trade Commission 
estimates that about 5 percent of all of the adult population has been 
victim of identity theft. Even worse, the true number of victims of 
that crime is unknown since most victims don't report it.
  We also know that this is a serious problem for illegal immigration. 
During a recent hearing at the Social Security Subcommittee, we learned 
that a credible set of fake identity documents costs about $350. With 
those fake documents, illegal immigrants can get a job and even sneak 
through the government's E-Verify system which is meant to verify 
whether an employee is eligible to work in this country.
  Congress must get to work on identity theft, and removing the Social 
Security number from widespread circulation is an excellent place to 
start. For years, the Ways and Means Subcommittee on Social Security 
has been working on this problem in a bipartisan way. We have approved 
bills to protect the privacy of Social Security numbers and prevent 
identity theft since the 106th Congress when it first approved the 
Social Security Number Privacy and Identity Theft Prevention Act. That 
legislation was introduced on a bipartisan basis by then-Subcommittee 
Chairman Clay Shaw and then-ranking member, the late Bob Matsui.
  The Ways and Means Committee has begun working on this and so has the 
Energy and Commerce Committee. Our two comprehensive bills are really 
not that far apart, yet we are repeatedly met with opposition from 
those groups which prefer to splash Social Security numbers on every 
personal document they want. The comprehensive efforts of our two 
committees are being met with the same resistance they met in previous 
years until now.
  I commend my colleague from Texas (Mr. Doggett) for working in a 
bipartisan way and not giving up on the issue. Sometimes you just have 
to take an issue one bite at a time.
  The bill H.R. 6600, Medicare Identity Theft Prevention Act, will take 
the Social Security number off the Medicare card. It is completely 
ridiculous that people are told not to carry their Social Security card 
in order to protect their identity, but then every senior citizen is 
told they must carry their Medicare card, which has their Social 
Security number on it.

[[Page 22751]]

  When the wallet of a senior citizen has been stolen, even a low-tech 
crook can get the identity theft. It's not the card itself; it's a fact 
that then every medical record at nursing homes, hospitals, and doctor 
offices has a Social Security number written on it.
  The wholesale amount of Social Security numbers that are available to 
identity thieves is staggering and completely unnecessary. The Centers 
for Medicare and Medicaid Services must change their tracking number 
for Medicare purposes.
  In just a few years, the first baby boomers are going to be turning 
65 and become eligible for Medicare. Rather than a huge wave of 
retirees being issued an ``identity theft kit'' when they receive a 
Medicare card, that card should have a unique identifier. Private 
insurance moved away from Social Security cards years ago. Medicare 
needs to do that, too.
  The problem of identity theft is not going to be addressed with one 
single piece of legislation, but we must start somewhere, and starting 
with Medicare cards before Boomers become eligible is a great place to 
start.
  Thank you, Mr. Doggett, for your support. I urge my colleagues to 
support this bill as well.
  I yield back the balance of my time.
  Mr. DOGGETT. Mr. Speaker, I would yield myself such time as I might 
consume in closing.
  Mr. Speaker, I think our colleague from Texas. Mr. Johnson has done 
an excellent job of outlining the scope of identity theft. It's 
something we hear about every day and sometimes think it's about 
someone else in some other place until it strikes a friend or loved 
one.
  We need to do a great deal to address identity theft. This is one 
small measure to encourage the folks at Medicare to begin to phase in a 
new type of identity marker for Medicare beneficiaries so that we will 
eliminate this particular source of the problem of identity theft.
  I want to acknowledge Kathleen Black on Mr. Johnson's staff, Jackie 
Bender on mine, as well as our colleague, the chairman of the Social 
Security Subcommittee, who will be completing his last term here, Mike 
McNulty of New York, and also to acknowledge the great interest and 
help from our colleague Representative Paul Hodes of New Hampshire who 
filed similar legislation and then worked with us to get this 
legislation approved. He's unable to be here today, but he's been very 
concerned about the identity theft issue and has offered great help in 
fashioning this legislation.
  And with that, Mr. Speaker, I believe the problem is clear. The small 
step we're taking through this legislation is clear, and I would move 
adoption of the bill.
  Ms. JACKSON-LEE of Texas. Mr. Speaker. I rise today in strong support 
of H.R. 6600, the ``Medicare Identity Theft Prevention Act of 2008'' I 
would like to thank my colleague Congressman Doggett and the Ways and 
Means Committee.
  This legislation today to require the federal government to remove 
Social Security numbers from Medicare identification cards and 
communications to Medicare beneficiaries.
  The Centers for Medicare and Medicaid Services (CMS), which 
administers the Medicare program, has fallen behind most other public 
and private organizations in recognizing the danger of displaying 
Social Security numbers. The Social Security Number Protection Act 
ensures that the Social Security numbers of Medicare beneficiaries are 
properly protected.
  Every year, millions of Americans are victims of identity theft--many 
after their Social Security numbers are stolen. Instead of leading by 
example, the federal government is lagging behind private health 
insurers and other public agencies in protecting Medicare recipients 
from identity theft. CMS's continued use of Social Security numbers on 
Medicare cards needlessly places people at risk.
  This bill ensures that a premium is placed on security and that 
personal information is protected. It makes no sense for a CMS to 
continue exposing Medicare beneficiaries to the risk of identity theft. 
We should pass this bill quickly and fix this problem once and for all.
  I believe that this is one of those clear-cut problems that is easy 
to fix. With identity theft on the rise, removing social security 
numbers from Medicare beneficiary cards is the smart thing to do. 
Identity theft is one of the fastest-growing crimes in the nation. 
Nearly 8.4 million people were victims of identity theft last year 
alone, and these crimes accounted for more than $49.3 billion in 
fraudulent charges.
  Nearly three years ago, Senator Durbin raised concerns about the use 
of Social Security numbers on Medicare cards. Because of his efforts, 
CMS issued a report to Congress hat outlined the steps that would be 
required to remove Social Security numbers from Medicare cards, but has 
failed to implement those changes.
  In May 2008, the Inspector General of the Social Security 
Administration issued a report which concluded that: ``Given the 
millions of individuals at risk for identity the and OMB's directive to 
eliminate unnecessary uses of Social Security numbers, we believe 
immediate action is needed to address this significant vulnerability.
  Today's legislation sets a timeframe for CMS to remove Social 
Security numbers from Medicare cards and communications to 
beneficiaries. The bill will:
  Require the Health and Human Services Secretary to implement 
procedures to eliminate the unnecessary collection, use, and display of 
Social Security numbers of Medicare beneficiaries within three years;
  Prohibit the display or the unencrypted electronic storage of Social 
Security numbers on newly issued Medicare cards;
  Prohibit the display or the unencrypted electronic storage of Social 
Security numbers on all Medicare cards with five years of enactment; 
and
  Prohibit the display of Social Security numbers on written and 
electronic communications to Medicare beneficiaries, unless essential 
for the operation of the Medicare program.
  I am proud to cosponsor legislation that will protect our elderly. I 
urge my colleagues to join me in supporting this legislation.
  Mr. DOGGETT. I yield back my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Doggett) that the House suspend the rules and 
pass the bill, H.R. 6600, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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