Bean Bill to Crack Down on Medicare Fraud Passes Committee

WASHINGTON- Today, U.S. Congressman Aaron Bean's (FL-04) bill to combat fraud in the durable medical equipment (DME) system passed the House Ways and Means Committee. H.R. 8871, the DME Scammer Prevention Act, would strengthen oversight and modernize claims processing requirements to prevent bad actors from defrauding Medicare beneficiaries and stealing taxpayer dollars.

Watch Congressman Bean's full remarks in committee markup on the bill here.

Upon committee passage, Congressman Bean said, "Rising fraud and criminal activity in the DME industry threaten to undermine our Medicare system and drive up costs. My bill will crack down on fraud, strengthen oversight, and ensure Medicare dollars are spent on legitimate patient care."

"Seniors pay into Medicare their whole lives, but foreign fraudsters and transnational criminal rings are treating their earned benefits like a blank check," said Ways and Means Committee Chairman Jason Smith. "Thanks to Representative Bean's leadership, we're making it harder for these bad actors to prey on seniors and get rich on the taxpayers' dime and easier to stop fraud with digital tools. The DME Scammer Prevention Act modernizes Medicare fraud prevention so we can prevent scams, protect tax dollars, and preserve the benefits our seniors have earned."

BACKGROUND

The DME Scammer Prevention Act would require the electronic submission of DME products most susceptible to fraud within 90 days of the initial claim date. The current submission deadline is 365 days, which allows fraudulent vendors to take advantage of the payment system and cheat the American taxpayer.

The bill would also direct the Government Accountability Office (GAO) to conduct a comprehensive review of the technology used by Medicare Administrative Contractors to screen and process claims. This report will help identify gaps in current fraud detection tools and recommend improvements to better protect the Medicare system.

Importantly, widespread fraud has been enabled in part by outdated systems and paper-based processes, including the continued allowance of fax submissions. In fact, more than 40,000 durable medical equipment (DME) claims have been submitted on paper and faxed to CMS for reimbursement in the past year alone, underscoring the need for modernization and stronger electronic safeguards.

Full text of Congressman Bean's bill can be found HERE.

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