Sen Kirk, Cong Shimkus Among Bipartisan Team Behind New Medicare Card to Prevent Fraud

Bipartisan, House-Senate Coalition Introduces Legislation to Prevent Medicare Waste, Fraud and Abuse



New Medicare card protects identities, takes printed Social Security number off front of the new Medicare card

WASHINGTON – To combat a reported $60 billion lost to waste, fraud and abuse within the Medicare system, U.S. Senators Mark Kirk (R-IL), Ron Wyden (D-OR), Marco Rubio (R-FL) and U.S. Representatives Jim Gerlach (R-PA-06), Earl Blumenauer (D-OR-03) and John Shimkus (R-IL-19) introduced legislation today to use existing “smart card” technology to protect seniors.



Similar to the 20 million "Common Access Cards" issued by the Department of Defense, the new Medicare Common Access Card Act of 2011, S. 1551, would establish a pilot program to develop a secure Medicare card using smart card technology to protect seniors personal information, prevent fraud and speed payment to doctors and hospitals. According to a Government Accountability Office report, fraudulent Medicare claims robbed taxpayers of $48 billion in 2010.



AARP and senior rights advocate, Wilfred Brimley, joined the bipartisan Members of Congress in announcing their support for the legislation.



"Building on the smart cards already issued to all Americans in uniform, we can offer seniors more protection for their identities while reducing fraud and waste in the strained Medicare system," Senator Kirk said. "By removing a senior's Social Security number from the front of the card and including the security upgrades used on the cards of our troops, this Secure Medicare Common Access Card will also help end Medicare's current "Pay then Chase" policy that allows so much fraud and waste. I am thankful to have the support of AARP and Wilfred Brimley who has been so active in promoting the health of seniors."



“If you looked at the card carried by every Medicare beneficiary in America you would find their name and their full social security number there for all to see,” Wyden said. “In an age of identity theft, this is simply asking for trouble. The legislation will not only make the identity of America’s seniors more secure, it does so in a way that will ensure that Medicare is paying for the services that are actually being provided. Giving providers and insurers the tools to reliably weed out fraud will only help to improve the experience of dealing with providers and insurers for those acting in good faith. This is an approach that has proven to reduce fraud and abuse and is a common sense approach to safeguarding taxpayer spending.”



“I am proud to be a cosponsor of this bill which would take a step to eliminate the $60 billion of waste, fraud, and abuse in the Medicare program,” Senator Rubio said. “Medicare is already facing long-term challenges, so we need to protect seniors and prevent people from abusing the system. I am proud to be working with Senator Kirk on this critical issue.”



“Cutting fraud, waste and abuse is critical to strengthening Medicare and making sure seniors continue to have access to the care they need,” said U.S. Rep. Jim Gerlach (PA-6th District). “Taxpayers and seniors deserve the protection against identity theft and fraud that this legislation provides, and I look forward to working with my colleagues in the House and Senate to bring the Medicare card into the 21st Century.”



“Millions of beneficiaries depend on Medicare for their healthcare needs and depend on Congress to ensure the vitality of that program,” said Congressman Blumenauer. “This is a simple and elegant solution to save money and guard against fraud and I look forward to working with Health and Human Services, Medicare beneficiaries, and other stakeholders to ensure Medicare’s continued integrity.”



“Medicare wastes 60 billion dollars each year by making fraudulent payments," said Congressman John Shimkus. "It’s possible that we could save half of that just by updating the Medicare card and verifying the recipient’s identity, who the provider was, and the service that was provided. This legislation will set up five test areas around the country, then we can determine whether it should be implemented nationwide.”



The Medicare Common Access Card Act of 2011 establishes a two-phase system for developing and implementing secure smart card technology for Medicare beneficiaries and providers based on the 20 million cards issued under the DoD program.



Phase one would require the Secretary of Health and Human Services (HHS) to design and implement a smart card pilot program in geographic regions considered to be at high programmatic risk in an effort to increase the quality of care, improve the accuracy in the Medicare billing system, reduce the potential for identity theft and prevent waste, fraud and abuse.



The second phase, expanded implementation, would occur one year after the start of the pilot program following a HHS report to Congress on the results of the pilot program and the viability of the nationwide expansion and implementation of Medicare Common Access Card technology.



The common access card technology would be used by both Medicare patients and health care providers at the point of service to verify identity and make secure billing transactions. By creating an electronic record between the beneficiary and the provider, it ensures that services and equipment were not only provided but also received, signaling that it can then be paid for by CMS. This type of technology is currently used by the Department of Defense (DoD), who have issued over 20 million of the secure ID cards. To date, DoD reports not a single common access card has been counterfeited.



The Medicare Common Access Card pilot program would be funded by transferring funds from the Medicare Improvement Fund (MIF). The MIF was established by the Medicare Improvements for Patients and Providers Act (MIPPA) of 2008 to make funds available to HHS for the purpose of making improvements under the Medicare Parts A & B programs including program integrity improvements.



Following introduction, the Medicare Common Access Card Act of 2011 will be referred to the Senate Finance Committee. The Congressional Super Committee, created in the July debt limit deal, is in a position to include a package to combat waste, fraud and abuse in the Medicare system in their report to Congress, due November 23.



With bipartisan, bicameral backing, the Members introducing the bill urge inclusion of the Medicare Common Access Card Act of 2011 pilot program in that report.



The Medicare Common Access Card Act of 2011 has been endorsed by the American Association of Retired Persons (AARP) and the SecureID Coalition.



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Senators Durbin and Kirk to sit together at State of Union Address

[WASHINGTON, D.C.] – In the spirit of bipartisanship, U.S. Senators Dick Durbin (D-IL) and Mark Kirk (R-IL) today announced that they will sit side-by-side at the President’s State of the Union Address on Tuesday, January 25. Traditionally, Members of Congress are split by party affiliation with Democrats and Republicans sitting on opposite sides of the center aisle in the U.S. House of Representatives chamber.



“Traditions that divide us were made to be broken,” said Durbin. “As we begin to heal after the tragedy in Arizona, it’s important to for our nation's leaders to show unity in the face of such a divisive act. But the real test of bipartisanship will begin the next day, when we go back to work to debate some of the most important issues of our time.”



“Sitting together as Americans rather than partisans is a helpful example of respect and cooperation following the tragedy in Arizona,” said Kirk.



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CAMPAIGN 2010: Congressman Mark Kirk (R), Candidate for U.S. Senate

CAMPAIGN 2010: U.S. Rep. Mark Kirk (R), Candidate for U.S. Senate (Part 1 of 3)

CAMPAIGN 2010: U.S. Rep. Mark Kirk (R), Candidate for U.S. Senate (Part 2 of 3)

CAMPAIGN 2010: U.S. Rep. Mark Kirk (R), Candidate for U.S. Senate (Part 3 of 3)

Statement from ILGOP Chairman Andy McKenna

From the Illinois Republican Party

“As Party Chairman my goal has been to build Party unity. Mark Kirk and I met last evening as part of an ongoing discussion about the U. S. Senate race. I reassured Mark that if he chooses to be a candidate, I will not oppose him.”

Roskam, Kirk FDA Bill Would Save Lives, Salmonella Outbreak Avoidable

From the Office of Congressman Peter Roskam

CHICAGO, IL - Congressmen Peter Roskam (R-IL) and Mark Kirk (R-IL) recently reintroduced legislation to secure our nation’s food system and close a dangerous Food and Drug Administration (FDA) oversight loophole. This timely legislation comes on the heels of a salmonella outbreak surrounding the distribution of contaminated peanut butter resulting in the death of nine people, and sickening more than 600.

Currently, domestic food suppliers, importers, and private testing labs, are not required to report all testing data, leaving the FDA in the dark when a shipment fails to meet U.S. standards. This missed opportunity denies the FDA the ability to collect data for its risk-based screening system. Most importantly, it leaves open the possibility a nefarious supplier, domestic or international, could “shop around” for a lab willing to give it favorable results to gain entry into the U.S. food supply.

“The recent outbreak of salmonella underscores the deadly consequences of a lack of oversight of our food supply,” said Roskam. “Every year 76 million people become sick, 325,000 are hospitalized, and 5,000 Americans die from food borne illnesses caused by contamination. Many of these deaths, including those recently caused by contaminated peanut butter, are avoidable. My legislation will close the most dangerous loophole, provide protection for whistleblowers in the industry, enhance penalties for violators and impose stricter safety standards to ensure a safe and secure food supply.”

"Parents have a right to purchase safe food for their children," Congressman Kirk said. "Contaminated foods should not end up in America’s shopping baskets. From cookies to snack mix to pet food, more than 2,500 products have been recalled in the latest incident alone. For the sake of American families, this dangerous loophole must be closed. I'm pleased to join with Congressman Roskam on this important legislation.”

As co-chair of the House US-China Working Group, Congressman Kirk led the effort to address the stream of tainted food imports from China. In August 2007, Kirk won commitments from the Chinese government to allow FDA access to manufacturing facilities around the country. In 2008, Kirk worked with the State Department to secure space in Beijing to house FDA personnel and worked with the FDA to deploy its first team to China later in the year.

Media reports show the Peanut Corporation of America, the source of the recent outbreak, actually found salmonella contamination on 12 occasions in the past two years. However, the company still sold the products after shopping around for a favorable test result. While it is illegal to ship contaminated products, suppliers and labs are not required to submit data of failed tests. This dangerous loophole caused more than 500 people in Illinois and 42 other states to become ill with salmonella and in 8 cases have been linked to death.

The legislation also gives the FDA the authority to initiate mandatory recalls of tainted food products.

Roskam and Kirk introduced similar legislation in April of 2008, nine months before the salmonella outbreak that killed eight.

Highlights of the Keeping America’s Food Safe Act

Close reporting loopholes for domestic food producers and private labs

• Requires all test results that show a potential contamination to be reported to the FDA for evaluation under the agency’s Reportable Food Registry; currently, this data can be withheld from the FDA, which diminishes its ability to maximize its efficiency through risk-based evaluations
• The Reportable Food Registry was established by the Food and Drug Administration Amendments Act of 2007, enabling the FDA to evaluate and respond to reports of food that could cause serious adverse health consequences

Authorize the FDA to initiate mandatory recalls of tainted food products

• If a company does not respond to an FDA-requested recall within 24 hours, the FDA can order a recall of a product it has reviewed under the Reportable Food Registry
• The FDA currently can request that a company initiate a recall, but the company is not obligated to comply; the FDA can seize adulterated or misbranded products
• However, giving the FDA this authority will augment its ability to protect the food supply

Close reporting loopholes and enhance the FDA’s knowledge base of food imports

• Requires the Secretary of HHS to certify any private lab or sampling service that will collect data on imported food, which will gives us greater knowledge about the actors we are dealing with in the import industry
• Private labs and sampling services would have to report any data from activities related to food imports to the Secretary, closing the current loophole that allows importers and private labs and sampling services to withhold unfavorable data from the FDA

Establish significant penalties for violators of reporting requirements

• Importers and the private labs and sampling services would be subject to a $1M fine for knowingly falsifying or submitting false results or data

Gain a fuller knowledge of the life-cycle of food imports

• Enables the Secretary to require foreign countries and foreign companies to become certified importers.
• The Secretary can waive the certification requirement by making a determination, documented for Congress, that the foreign entities maintain at least equivalent food safety standards with the U.S.
• By gaining assurances that imported food is being processed according to our own domestic requirements, we will know more about the total food cycle and import safety

Establish a website to provide an information clearinghouse

• Directs the Secretary to work with USDA to provide information for consumers, industry, and health professionals that will foster increasing public awareness of food safety issues
• Also directs the Secretary to work with the Secretary of Education to develop content appropriate for the curricula of the schools of the United States

Provide protection for whistleblowers in the food import safety industry

• Protects those that bring to light deficiencies and safety threats in the food import process
• Protecting those with such information is necessary to ensure our nation is ever vigilant in addressing the unique threat food imports can pose