This bill requires states to cross-reference the Death Master File when enrolling and verifying Medicaid providers to prevent payments to deceased individuals.
Scott Peters
Representative
CA-50
The "Medicare and Medicaid Fraud Prevention Act" aims to reduce fraud within Medicaid by requiring states to cross-reference the Death Master File when enrolling and regularly screening Medicaid providers and suppliers to ensure they are not deceased, starting January 1, 2027.
This proposed legislation adds a straightforward requirement for states managing their Medicaid programs: they need to verify that healthcare providers and suppliers are actually alive before enrolling them and paying them. Specifically, the bill mandates that starting January 1, 2027, states must check the Social Security Administration's Death Master File (DMF) – essentially a database of reported deaths – when a provider first enrolls in Medicaid. They'll also need to run this check at least every three months after that.
The core idea here is pretty simple: prevent taxpayer money from going to deceased individuals listed as Medicaid providers. By requiring regular checks against the DMF, the bill aims to close a loophole that could allow fraudulent payments to continue after a provider has passed away. Think of it as a basic verification step – making sure the person or entity receiving public funds is still eligible to do so. While it seems like common sense, this formalizes the process and sets a minimum standard for all states. This is primarily an administrative measure focused on program integrity and saving taxpayer dollars, rather than a change impacting patient care directly. For providers, this likely means minimal disruption, perhaps just being part of the standard background verification process states already perform.