The Obama administration supports a bipartisan bill that boosts states' ability to identify providers that have been banned from participating in Medicare or in another state's Medicaid program or the Children's Health Insurance Program (CHIP) .
The legislation is co-sponsored by Rep. Larry Bucshon (R-Ind.) and Reps. George Butterfield (D-N.C.) and Peter Welch (D-Vt.).
The Affordable Care Act requires that state Medicaid programs reject providers that have been dismissed by Medicare or another state Medicaid program. Providers can be banned if they commit Medicare or Medicaid fraud, patient abuse or neglect, or any felonies related to unlawful manufacture, distribution, prescription, or dispensing of controlled substances.
The bill would revise a state's reporting requirements by mandating that every provider enroll with the state. The state must also inform HHS when a provider has been terminated from a plan. The HHS would include information on those providers in a database specified in the bill. A state would also need to create a system for notifying managed-care organizations when a provider is terminated under a federal program.
The Congressional Budget Office estimates that the bill would reduce direct spending by $28 million over 10 years.
The bill has passed the House Energy and Commerce Committee's Health Subcommittee and is expected to come put up for debate on the House floor this week according to an Energy and Commerce announcement.
The administration's announcement comes a week after the CMS released a proposed rule that stated providers would be banned from Medicare and Medicaid if they fail to disclose that they are working with individuals who may be barred from billing the programs or who may owe money to the government.