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Medicare Transaction Fraud Prevention Act

USA119th CongressS-2066| Senate 
| Updated: 6/12/2025
Tim Sheehy

Tim Sheehy

Republican Senator

Montana

Cosponsors (3)
Bill Cassidy (Republican)Margaret Wood Hassan (Democratic)Eric Schmitt (Republican)

Finance Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This bill establishes a two-year pilot program under Medicare to test a predictive risk-scoring algorithm, beginning no later than January 1, 2026. The program aims to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests , focusing on transactions involving these specific items or services. Participation in this pilot program is voluntary for beneficiaries who opt-in to receive electronic Medicare Summary Notices and agree to participate. The Secretary will adopt a predictive risk-scoring algorithm that learns from beneficiary data to assign a risk score (from 1 to 99) to relevant transactions. Prior to implementation, this algorithm must undergo sufficient testing, evaluation, and review, taking into consideration executive orders related to artificial intelligence. For transactions identified as high-risk by the algorithm, a human review process will determine if payment suspension is necessary. Beneficiaries will be given the opportunity to cure a high-risk score or suspended transaction, or to confirm its validity, via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, which will also include information on reporting suspected fraud. The Secretary will also collaborate with industry representatives, including durable medical equipment suppliers, on the program's development and implementation.
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Timeline

Bill from Previous Congress

S 118-3630
Medicare Transaction Fraud Prevention Act
Jun 12, 2025

Latest Companion Bill Action

HR 119-3996
Introduced in House
Jun 12, 2025
Introduced in Senate
Jun 12, 2025
Read twice and referred to the Committee on Finance.
  • Bill from Previous Congress

    S 118-3630
    Medicare Transaction Fraud Prevention Act


  • June 12, 2025

    Latest Companion Bill Action

    HR 119-3996
    Introduced in House


  • June 12, 2025
    Introduced in Senate


  • June 12, 2025
    Read twice and referred to the Committee on Finance.

Health

Related Bills

  • HR 119-3996: Medicare Transaction Fraud Prevention Act

Medicare Transaction Fraud Prevention Act

USA119th CongressS-2066| Senate 
| Updated: 6/12/2025
This bill establishes a two-year pilot program under Medicare to test a predictive risk-scoring algorithm, beginning no later than January 1, 2026. The program aims to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests , focusing on transactions involving these specific items or services. Participation in this pilot program is voluntary for beneficiaries who opt-in to receive electronic Medicare Summary Notices and agree to participate. The Secretary will adopt a predictive risk-scoring algorithm that learns from beneficiary data to assign a risk score (from 1 to 99) to relevant transactions. Prior to implementation, this algorithm must undergo sufficient testing, evaluation, and review, taking into consideration executive orders related to artificial intelligence. For transactions identified as high-risk by the algorithm, a human review process will determine if payment suspension is necessary. Beneficiaries will be given the opportunity to cure a high-risk score or suspended transaction, or to confirm its validity, via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, which will also include information on reporting suspected fraud. The Secretary will also collaborate with industry representatives, including durable medical equipment suppliers, on the program's development and implementation.
View Full Text

Suggested Questions

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

Timeline

Bill from Previous Congress

S 118-3630
Medicare Transaction Fraud Prevention Act
Jun 12, 2025

Latest Companion Bill Action

HR 119-3996
Introduced in House
Jun 12, 2025
Introduced in Senate
Jun 12, 2025
Read twice and referred to the Committee on Finance.
  • Bill from Previous Congress

    S 118-3630
    Medicare Transaction Fraud Prevention Act


  • June 12, 2025

    Latest Companion Bill Action

    HR 119-3996
    Introduced in House


  • June 12, 2025
    Introduced in Senate


  • June 12, 2025
    Read twice and referred to the Committee on Finance.
Tim Sheehy

Tim Sheehy

Republican Senator

Montana

Cosponsors (3)
Bill Cassidy (Republican)Margaret Wood Hassan (Democratic)Eric Schmitt (Republican)

Finance Committee

Health

Related Bills

  • HR 119-3996: Medicare Transaction Fraud Prevention Act
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted