S.Amdt. 2998

SA 2998. Ms. KLOBUCHAR (for herself and Ms. Snowe) submitted an
amendment intended to be proposed to amendment SA 2786 proposed by Mr.
Reid (for himself, Mr. Baucus, Mr. Dodd, and Mr. Harkin) to the bill
H.R. 3590, to amend the Internal Revenue Code of 1986 to modify the
first-time homebuyers credit in the case of members of the Armed Forces
and certain other Federal employees, and for other purposes; which was
ordered to lie on the table; as follows:

On page 1783, between lines 2 and 3, insert the following:

SEC. 6412. PROVIDER AND SUPPLIER PAYMENTS UNDER MEDICARE AND
MEDICAID THROUGH DIRECT DEPOSIT OR ELECTRONIC
FUNDS TRANSFER (EFT) AT INSURED DEPOSITORY
INSTITUTIONS.

(a) Medicare.--
(1) In general.--Section 1874 of the Social Security Act
(42 U.S.C. 1395kk) is amended by adding at the end the
following new subsection:
``(i) Limitation on Payment to Providers of Services and
Suppliers.--No payment shall be made under this title for
items and services furnished by a provider of services or
supplier unless each payment to the provider of services or
supplier is in the form of direct deposit or electronic funds
transfer to the provider of services' or supplier's account,
as applicable, at a depository institution (as defined in
section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C.
461(b)(1)(A))).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to each payment made to a provider of services,
provider, or supplier on or after such date (not later than
July 1, 2012) as the Secretary of

[[Page S12645]]

Health and Human Services shall specify, regardless of when
the items and services for which such payment is made were
furnished.
(b) Medicaid Pilot Project.--
(1) Authority to establish.--The Secretary shall establish
a Medicaid pilot project under which payment for items and
services furnished by providers or suppliers of items or
services under the Medicaid programs of the States selected
to participate in the project is in the form of a direct
deposit or electronic funds transfer to the provider's or
supplier's account, as applicable, at a depository
institution (as defined in section 19(b)(1)(A) of the Federal
Reserve Act (12 U.S.C. 461(b)(1)(A))).
(2) Deadline for implementation.--The pilot project
established under paragraph (1) shall begin in fiscal year
2012.
(3) Report.--Not later than September 30, 2014, the
Secretary of Health and Human Services shall report to
Congress on the pilot project established under this
subsection. The report shall include an analysis of the
extent to which the project is effective in improving
efficiency, reducing administrative costs, and preventing
fraud in the Medicaid program and a recommendation as to
whether the project should be expanded to additional or all
State Medicaid programs.
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