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View NCGA Bill Details2011-2012 Session
House Bill 337 (Public) Filed Friday, March 11, 2011
Intro. by Tolson, Johnson.

Status: Ref to the Com on Health and Human Services, if favorable, Appropriations (House Action) (Mar 15 2011)
H 337

Bill Summaries:

  • Summary date: Mar 14 2011 - View Summary

    Identical to S 307, filed 3/9/11.

    Establishes a Smart Card Pilot Program under the Department of Health and Human Services (DHHS), Program Integrity Unit of the Division of Medical Assistance to do all of the following: (1) authenticate Medicaid recipients at the onset and completion of ach transaction in order to prevent card sharing and other forms of fraud; (2) deny ineligible persons at the point of transaction; (3) authenticate providers of Medicaid services at the point of transaction to prevent phantom billing and other forms of provider fraud; (4) secure and protect the personal identity and information of Medicaid recipients; and (5) reduce the total amount of medical assistance expenditures by reducing the average cost per recipient. Defines the following terms: claim, medical assistance card, multifactor authentication, and point of transaction.
    Specifies that the pilot program must run for 12 months and include the following: (1) smart cards (which replace existing medical assistance cards) for the storage of Medicaid recipients State benefit information, insurance information, prescription history, and other general health information and that are capable of storing multiple recipients' information on one card; (2) biometric fingerprint scanners and card readers; (3) secure finger-imaging system that is compliant with federal law; (4) information system for recording and reporting authenticated transactions that interfaces with the appropriate State databases to determine eligibility of recipients and that gathers analytical information to be provided to data-mining companies; (5) no requirement for preenrollment of recipients; and (6) the ability to store an image of the Medicaid recipient's image on the smart card and in the database.
    Provides metrics to determine if the pilot program is a success and authorizes DHHS to modify program as necessary if it does not meet projected savings threshold. Specifies that pilot program not be expanded unless authorized by the General Assembly. Requires DHHS to submit a detailed report on the implementation and success of the pilot program to the Governor, Speaker of the House of Representatives, President Pro Tempore of the Senate, Chairs of the Senate and House of Representatives Appropriations Committees, and to the Fiscal Research Division by June 30, 2012.
    Specifies that the act must be construed consistent with the federal Social Security Act.
    Directs that funds appropriated to DHHS for the 2010-11 fiscal year for the purpose of fraud prevention must be carried forward to the 2011-12 fiscal year to carry out the purposes of the act.