text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Medicare Common Access Card Act of 
  2017''.
  
  SEC. 2. MEDICARE SMART CARD PILOT PROGRAM.
  
      Part E of title XVIII of the Social Security Act is amended by 
  inserting after section 1866E the following new section:
  
  ``SEC. 1866F. SMART CARD PILOT PROGRAM.
  
      ``(a) Implementation.--
              ``(1) In general.--Not later than 36 months after the date 
          of the enactment of this section, the Secretary shall establish 
          a pilot program (in this section referred to as the `pilot 
          program') to demonstrate the feasibility of using smart card 
          technology under this title.
              ``(2) Smart card technology defined.--In this section, the 
          term `smart card technology' means the following:
                      ``(A) Beneficiary smart card.--A machine readable, 
                  fraud- and tamper-resistant card (in this section 
                  referred to as a `smart card') that includes an 
                  embedded integrated circuit chip with a secure micro-
                  controller that enables the verification and secure, 
                  electronic authentication of the identity of a Medicare 
                  beneficiary at the point of service through a 
                  combination of the smart card and a personal 
                  identification number known by or associated with such 
                  beneficiary.
                      ``(B) Card reader technology.--Information 
                  technology that enables a supplier and provider to 
                  authenticate the identity of a Medicare beneficiary 
                  through presentation of such a smart card and such 
                  components, with such authentication to be reflected 
                  through the use of a modifier or in another appropriate 
                  manner, as determined by the Secretary, in the claims 
                  adjudication process.
              ``(3) Program design elements.--The pilot program shall be 
          conducted for a period of 3 years consistent with the 
          following:
                      ``(A) Selection of area.--In consultation with the 
                  Inspector General of the Department of Health and Human 
                  Services, the Secretary shall select at least 3 
                  geographic areas in which the pilot program will 
                  operate.
                      ``(B) Selection of supplier and provider types.--In 
                  consultation with the Inspector General of the 
                  Department of Health and Human Services, the Secretary 
                  shall select supplier and provider types that will be 
                  required to participate in the pilot program (referred 
                  to in this section as `participating suppliers and 
                  providers'). In selecting such supplier and provider 
                  types, the Secretary shall--
                              ``(i) take into account the risk of fraud, 
                          waste, and abuse (as described in section 
                          1886(j)(2)(B) with respect to the category of 
                          provider or supplier) and other factors as 
                          determined appropriate by the Secretary; and
                              ``(ii) limit the pilot program to no more 
                          than 2,000 suppliers and providers.
                      ``(C) Supplier and provider hardship exemptions.--
                  The Secretary shall exempt from participation in the 
                  pilot program a supplier or provider that either--
                              ``(i) does not have access to card reader 
                          technology (as described in paragraph (2)(B));
                              ``(ii) does not have sufficient internet 
                          access; or
                              ``(iii) has a low volume (as determined by 
                          the Secretary) of Medicare claims for which 
                          payment is made under this title.
                      ``(D) Beneficiary smart card issuance.--The 
                  Secretary shall provide for the issuance of beneficiary 
                  smart cards described in paragraph (2)(A) to all 
                  Medicare beneficiaries residing in a geographic area in 
                  which the pilot program is conducted under subparagraph 
                  (A). Information that appears on Medicare cards used 
                  outside the pilot program may appear on the face of the 
                  beneficiary smart card.
                      ``(E) Information on operation of pilot program.--
                  The Secretary shall provide participating suppliers and 
                  providers and Medicare beneficiaries who are furnished 
                  items and services by such suppliers and providers, 
                  with information on the operation of the pilot program, 
                  including privacy protections described in subparagraph 
                  (H).
                      ``(F) Access to services outside the pilot 
                  program.--
                              ``(i) Beneficiaries.--Medicare 
                          beneficiaries who receive beneficiary smart 
                          cards may receive items and services care from 
                          suppliers and providers not participating in 
                          the pilot program.
                              ``(ii) Suppliers and providers.--Suppliers 
                          and providers not participating in the pilot 
                          program may submit claims under this title for 
                          items and services furnished without use of 
                          smart card technology to Medicare beneficiaries 
                          who receive beneficiary smart cards.
                      ``(G) Private sector implementation.--The Secretary 
                  shall select, by using a competitive procurement, a 
                  private sector contractor to implement and operate the 
                  pilot program.
                      ``(H) Privacy protections.--The Secretary shall 
                  ensure that the pilot program complies with applicable 
                  Federal laws, including regulations, concerning 
                  individually identifiable health information, including 
                  the Privacy Act of 1974 and regulations promulgated 
                  under section 264(c) of the Health Insurance 
                  Portability and Accountability Act of 1996 and such 
                  individually identifiable information shall be exempt 
                  from disclosure under section 552(b)(3) of title 5, 
                  United States Code.
                      ``(I) Mandatory participation.--Subject to 
                  subparagraph (C), in the case of services furnished by 
                  a provider or supplier included in a supplier or 
                  provider type selected under subparagraph (B) in a 
                  geographic area selected under subparagraph (A), 
                  payment may only be made under this title for such 
                  services during the period of the pilot program if the 
                  provider or supplier is participating in the pilot 
                  program.
              ``(4) Definitions.--In this section:
                      ``(A) The terms `supplier' and `provider' have the 
                  meanings given the terms `supplier' and `provider of 
                  services' in subsections (d) and (u), respectively, of 
                  section 1861.
                      ``(B) The term `Medicare beneficiary' means an 
                  individual who is enrolled in the original Medicare 
                  fee-for-service program under parts A and B and is not 
                  enrolled in an MA plan under part C, an eligible 
                  organization under section 1876, or a PACE program 
                  under section 1894.
                      ``(C) The term `Medicare claim' means a claim for 
                  an item or service for which payment is made under this 
                  title.
      ``(b) Reports to Congress.--
              ``(1) In general.--The Secretary shall submit to Congress 
          the following reports:
                      ``(A) Initial design report.--Not later than 2 
                  years after the date of the enactment of this section, 
                  a report that outlines the plan for implementation of 
                  the pilot program.
                      ``(B) Implementation report.--After implementation 
                  of the pilot program, a report on the initial 
                  implementation of the pilot program, including 
                  parameters for operation of such program.
                      ``(C) Interim performance report.--Not later than 2 
                  years after the date the pilot program is implemented, 
                  an interim report on the performance of such program.
                      ``(D) Final performance report.--Not later than 18 
                  months after the date of the completion of the pilot 
                  program, a final report on the performance of such 
                  program.
              ``(2) Contents of certain reports.--The reports under 
          subparagraphs (C) and (D) of paragraph (1) shall include 
          information on the performance of the pilot program in 
          achieving its objectives and such recommendations regarding 
          expanding the duration and scope of such program as the 
          Secretary determines appropriate.
      ``(c) Funding.--For purposes of conducting the pilot program, the 
  Secretary shall provide for the transfer, from the Supplemental Medical 
  Insurance Trust Fund under section 1841, to the Centers for Medicare & 
  Medicaid Program Management Account, of $150,000,000, to be available 
  until expended.''.
target: Medicare Common Access Card Act of 2017 This bill requires the Centers for Medicare &amp; Medicaid Services (CMS) to establish a three-year pilot program, in at least three&nbsp;geographic areas,&nbsp;to demonstrate the feasibility of using smart-card technology to authenticate the identity of a Medicare beneficiary at points of service. The CMS shall select supplier and provider types that will be required to participate in the pilot program as a condition of Medicare payment, but&nbsp;must exempt from participation a supplier or provider that: (1) does not have access to card-reader technology, (2) does not have sufficient internet access, or (3) has a low volume of Medicare claims. The CMS shall select a private contractor to implement and operate the pilot program. The CMS must submit specified reports to Congress on program design, implementation, and performance. For purposes of conducting the pilot program, the CMS shall&nbsp;provide for the&nbsp;transfer of $150 million from the Supplemental Medical Insurance Trust Fund to the CMS Program Management Account.
feat_title: Medicare Common Access Card Act of 2017