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Medicare Transaction Fraud Prevention Act

USA119th CongressHR-3996| House 
| Updated: 6/12/2025
David Schweikert

David Schweikert

Republican Representative

Arizona

Ways and Means Committee, Energy and Commerce Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This bill proposes a two-year pilot program within Medicare to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests by utilizing a predictive risk-scoring algorithm . Set to begin by January 1, 2026, the program aims to improve the detection and prevention of fraud and abuse in these specific areas of Medicare spending. Participation in the pilot program is voluntary for beneficiaries , who must opt-in to receive electronic Medicare Summary Notices and agree to participate. The algorithm will score relevant transactions from 1 (least risky) to 99 (most risky), considering factors such as the absence of a prior beneficiary-provider relationship, aberrant billing patterns, and changes in provider ownership or electronic fund transfer details. Before implementation, the Secretary must conduct sufficient testing and evaluation of the algorithm, establish notification methods for affected parties, and collaborate with industry representatives. For any transaction flagged as high-risk by the algorithm, a human review process will be initiated to determine if the payment should be suspended. Beneficiaries will then have the opportunity to confirm the transaction or cure the high-risk score if they believe it is based on inaccurate data, responding via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, including information on how to report suspected fraud, and the Secretary may terminate or reissue Medicare cards to prevent further fraud.
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Timeline

Bill from Previous Congress

HR 118-7147
Medicare Transaction Fraud Prevention Act
Jun 12, 2025

Latest Companion Bill Action

S 119-2066
Introduced in Senate
Jun 12, 2025
Introduced in House
Jun 12, 2025
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
  • Bill from Previous Congress

    HR 118-7147
    Medicare Transaction Fraud Prevention Act


  • June 12, 2025

    Latest Companion Bill Action

    S 119-2066
    Introduced in Senate


  • June 12, 2025
    Introduced in House


  • June 12, 2025
    Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Health

Related Bills

  • S 119-2066: Medicare Transaction Fraud Prevention Act

Medicare Transaction Fraud Prevention Act

USA119th CongressHR-3996| House 
| Updated: 6/12/2025
This bill proposes a two-year pilot program within Medicare to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests by utilizing a predictive risk-scoring algorithm . Set to begin by January 1, 2026, the program aims to improve the detection and prevention of fraud and abuse in these specific areas of Medicare spending. Participation in the pilot program is voluntary for beneficiaries , who must opt-in to receive electronic Medicare Summary Notices and agree to participate. The algorithm will score relevant transactions from 1 (least risky) to 99 (most risky), considering factors such as the absence of a prior beneficiary-provider relationship, aberrant billing patterns, and changes in provider ownership or electronic fund transfer details. Before implementation, the Secretary must conduct sufficient testing and evaluation of the algorithm, establish notification methods for affected parties, and collaborate with industry representatives. For any transaction flagged as high-risk by the algorithm, a human review process will be initiated to determine if the payment should be suspended. Beneficiaries will then have the opportunity to confirm the transaction or cure the high-risk score if they believe it is based on inaccurate data, responding via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, including information on how to report suspected fraud, and the Secretary may terminate or reissue Medicare cards to prevent further fraud.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

HR 118-7147
Medicare Transaction Fraud Prevention Act
Jun 12, 2025

Latest Companion Bill Action

S 119-2066
Introduced in Senate
Jun 12, 2025
Introduced in House
Jun 12, 2025
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
  • Bill from Previous Congress

    HR 118-7147
    Medicare Transaction Fraud Prevention Act


  • June 12, 2025

    Latest Companion Bill Action

    S 119-2066
    Introduced in Senate


  • June 12, 2025
    Introduced in House


  • June 12, 2025
    Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
David Schweikert

David Schweikert

Republican Representative

Arizona

Ways and Means Committee, Energy and Commerce Committee

Health

Related Bills

  • S 119-2066: Medicare Transaction Fraud Prevention Act
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted