[Pages H10200-H10202]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

MEDICARE IDENTITY THEFT PREVENTION ACT OF 2008

Mr. DOGGETT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6600) to amend title II of the Social Security Act to
prohibit the inclusion of Social Security account numbers on Medicare
cards, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 6600

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Medicare Identity Theft
Prevention Act of 2008''.

SEC. 2. PROHIBITION OF INCLUSION OF SOCIAL SECURITY ACCOUNT
NUMBERS ON MEDICARE CARDS.

(a) In General.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at
the end the following new clause:
``(x) The Secretary of Health and Human Services, in
consultation with the Commissioner of Social Security, shall
establish cost-effective procedures to ensure that a social
security account number (or any derivative thereof) is not
displayed, coded, or embedded on the Medicare card issued to
an individual who is entitled to benefits under part A of
title XVIII or enrolled under part B of title XVIII and that
any other identifier displayed on such card is easily
identifiable as not being the social security account number
(or a derivative thereof).''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply with respect to Medicare cards issued on and after an
effective date specified by the Secretary of Health and Human
Services, but in no case shall such effective date be later
than the date that is 24 months after the date adequate
funding is provided pursuant to subsection (d)(2).
(2) Reissuance.--Subject to subsection (d)(2), in the case
of individuals who have been issued such cards before such
date, the Secretary of Health and Human Services--
(A) shall provide for the reissuance for such individuals
of such a card that complies with such amendment not later
than 3 years after the effective date specified under
paragraph (1); and
(B) may permit such individuals to apply for the reissuance
of such a card that complies with such amendment before the
date of reissuance otherwise provided under subparagraph (A)
in such exceptional circumstances as the Secretary may
specify.
(c) Outreach Program.--Subject to subsection (d)(2), the
Secretary of Health and Human Services, in consultation with
the Commissioner of Social Security, shall conduct an
outreach program to Medicare beneficiaries and providers
about the new Medicare card provided under this section.
(d) Report to Congress and Limitations on Effective Date.--
(1) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Health and Human
Services, acting through the Administrator of the Centers for
Medicare & Medicaid Services and in consultation with the
Commissioner of Social Security, shall submit to Congress a
report that includes detailed options regarding the
implementation of this section, including line-item estimates
of and justifications for the costs associated with such
options and estimates of timeframes for each stage of
implementation. In recommending such options, the Secretary
shall take into consideration, among other factors, cost-
effectiveness and beneficiary outreach and education.
(2) Limitation; modification of deadlines.--With respect to
the amendment made by subsection (a), and the requirements of
subsections (b) and (c)--
(A) such amendment and requirements shall not apply until
adequate funding is appropriated pursuant to paragraph (3) to
implement the provisions of this section, as determined by
Congress; and
(B) any deadlines otherwise established under this section
for such amendment and requirements are contingent upon the
receipt of adequate funding (as determined in subparagraph
(A)) for such implementation.
(3) Authorization of appropriations.--
(A) In general.--In addition to any amounts made available
to the Secretary of Health and Human Services for the Program
Management Account of the Centers for Medicare & Medicaid
Services for administrative expenses and to the Commissioner
of Social Security for administrative expenses, and subject
to subparagraph (B), taking into consideration the report
submitted under paragraph (1), there is authorized to be
appropriated such sums as are necessary to carry out the
provisions of this section, including section 205(c)(2)(C) of
the Social Security Act, as added by subsection (a), for each
of the five fiscal years beginning after the date of
submittal of the report under paragraph (1).
(B) Limitation.--Such funds are not authorized to be
appropriated until after receipt of the report provided under
paragraph (1).

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Doggett) and the gentleman from Texas (Mr. Sam Johnson) each
will control 20 minutes.
The Chair recognizes the gentleman from Texas (Mr. Doggett).
Mr. DOGGETT. Thank you, Mr. Speaker. It is an all-Texas act this
afternoon, but it's about a measure that affects seniors and
individuals with disabilities all over this country.

General Leave

Mr. DOGGETT. Let me first ask unanimous consent that Members have 5
legislative days in which to revise and extend their remarks and to add
any extraneous material in the Record concerning H.R. 6600, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. DOGGETT. Mr. Speaker, I yield myself such time as I may consume.
There are 44 million seniors and individuals with disabilities who
carry in their wallets or in their purses something that makes them
unnecessarily more vulnerable to identity theft, and that is their
Medicare cards. Apart from the Social Security card, itself, the
Medicare card is the most frequently issued government document
displaying a Social Security number. This practice invites foul play.
To protect both the savings and the peace of mind of Medicare
beneficiaries, I've introduced with the assistance and the
encouragement of my

[[Page H10201]]

colleague from Texas, the ranking member on the Social Security
Subcommittee, Mr. Johnson, the Medicare Identity Theft Prevention Act.
This bipartisan legislation would require Medicare to take the steps
that private companies and that other government agencies have already
taken to protect the identities of our seniors.
Every time a senior or an individual with a disability hands over a
Medicare card, that person is handing over the keys of financial
security. With increasingly sophisticated thefts by identity thieves,
inaction is unacceptable. Seniors have saved and have built over their
lifetimes their financial security and their reputations.

{time} 1500

Their savings and their credit should not be put needlessly at risk
if someone steals their Medicare card. Just as a doctor swears an oath
to do no harm in practicing medicine, Medicare should make sure that it
does no harm to the financial security and credit rating of its
beneficiaries. The Medicare Identity Theft Prevention Act will help to
ensure that the government better protects seniors from identity theft,
denying thieves access to this critical data.
The private sector and government agencies, including the Veterans
Administration and the Department of Defense, have begun to protect
Social Security numbers from identity thieves. But Medicare has not yet
taken appropriate steps to do this, hence this legislation.
Inaction jeopardizes the safety of millions of our seniors and
individuals with disabilities. This legislation has the support of the
Consumers Union, the National Committee to Preserve Social Security and
Medicare, the National Silver-Haired Congress, and the Texas Silver-
Haired Legislature, as well as the Elder Justice Coalition.
Seniors confront many threats to their retirement security these
days. This bill is one way to prevent their falling victim to
swindlers. I urge the adoption of the bill.
I reserve the balance of my time.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I rise in support of the bill
H.R. 6600, the Medicare Identity Prevention Act. I thank Mr. Doggett
for bringing it up. Apparently we can't get any resolution on Social
Security so we need to do it one baby step at a time.
Americans are rightly worried about the security of their personal
information, including their Social Security number. Practically every
day we hear about another data breach in the private or public sector
where identity information of hundreds, if not thousands, of people is
stolen.
According to the Privacy Rights Clearinghouse, the total number of
known records that have been compromised since January 2005 is over 158
million. Even though Social Security numbers were created to track
earnings for determining benefit amounts under Social Security, these
numbers are now unfortunately widely used as personal identifiers.
According to the Government Accountability Office, Social Security
numbers have become the ``identifier of choice'' and are used for all
sorts of business transactions. In an April 2007 report, the
President's Identity Theft Task Force identified the Social Security
number as the most valuable commodity for an identity thief.
These thieves are hard at work. The Federal Trade Commission
estimates that about 5 percent of all of the adult population has been
victim of identity theft. Even worse, the true number of victims of
that crime is unknown since most victims don't report it.
We also know that this is a serious problem for illegal immigration.
During a recent hearing at the Social Security Subcommittee, we learned
that a credible set of fake identity documents costs about $350. With
those fake documents, illegal immigrants can get a job and even sneak
through the government's E-Verify system which is meant to verify
whether an employee is eligible to work in this country.
Congress must get to work on identity theft, and removing the Social
Security number from widespread circulation is an excellent place to
start. For years, the Ways and Means Subcommittee on Social Security
has been working on this problem in a bipartisan way. We have approved
bills to protect the privacy of Social Security numbers and prevent
identity theft since the 106th Congress when it first approved the
Social Security Number Privacy and Identity Theft Prevention Act. That
legislation was introduced on a bipartisan basis by then-Subcommittee
Chairman Clay Shaw and then-ranking member, the late Bob Matsui.
The Ways and Means Committee has begun working on this and so has the
Energy and Commerce Committee. Our two comprehensive bills are really
not that far apart, yet we are repeatedly met with opposition from
those groups which prefer to splash Social Security numbers on every
personal document they want. The comprehensive efforts of our two
committees are being met with the same resistance they met in previous
years until now.
I commend my colleague from Texas (Mr. Doggett) for working in a
bipartisan way and not giving up on the issue. Sometimes you just have
to take an issue one bite at a time.
The bill H.R. 6600, Medicare Identity Theft Prevention Act, will take
the Social Security number off the Medicare card. It is completely
ridiculous that people are told not to carry their Social Security card
in order to protect their identity, but then every senior citizen is
told they must carry their Medicare card, which has their Social
Security number on it.
When the wallet of a senior citizen has been stolen, even a low-tech
crook can get the identity theft. It's not the card itself; it's a fact
that then every medical record at nursing homes, hospitals, and doctor
offices has a Social Security number written on it.
The wholesale amount of Social Security numbers that are available to
identity thieves is staggering and completely unnecessary. The Centers
for Medicare and Medicaid Services must change their tracking number
for Medicare purposes.
In just a few years, the first baby boomers are going to be turning
65 and become eligible for Medicare. Rather than a huge wave of
retirees being issued an ``identity theft kit'' when they receive a
Medicare card, that card should have a unique identifier. Private
insurance moved away from Social Security cards years ago. Medicare
needs to do that, too.
The problem of identity theft is not going to be addressed with one
single piece of legislation, but we must start somewhere, and starting
with Medicare cards before Boomers become eligible is a great place to
start.
Thank you, Mr. Doggett, for your support. I urge my colleagues to
support this bill as well.
I yield back the balance of my time.
Mr. DOGGETT. Mr. Speaker, I would yield myself such time as I might
consume in closing.
Mr. Speaker, I think our colleague from Texas. Mr. Johnson has done
an excellent job of outlining the scope of identity theft. It's
something we hear about every day and sometimes think it's about
someone else in some other place until it strikes a friend or loved
one.
We need to do a great deal to address identity theft. This is one
small measure to encourage the folks at Medicare to begin to phase in a
new type of identity marker for Medicare beneficiaries so that we will
eliminate this particular source of the problem of identity theft.
I want to acknowledge Kathleen Black on Mr. Johnson's staff, Jackie
Binder on mine, as well as our colleague, the chairman of the Social
Security Subcommittee, who will be completing his last term here, Mike
McNulty of New York, and also to acknowledge the great interest and
help from our colleague Representative Paul Hodes of New Hampshire who
filed similar legislation and then worked with us to get this
legislation approved. He's unable to be here today, but he's been very
concerned about the identity theft issue and has offered great help in
fashioning this legislation.
And with that, Mr. Speaker, I believe the problem is clear. The small
step we're taking through this legislation is clear, and I would move
adoption of the bill.
Ms. JACKSON-LEE of Texas. Mr. Speaker. I rise today in strong support
of H.R. 6600, the ``Medicare Identity Theft Prevention Act of 2008'' I
would like to thank my colleague Congressman Doggett and the Ways and
Means Committee.

[[Page H10202]]

This legislation today to require the federal government to remove
Social Security numbers from Medicare identification cards and
communications to Medicare beneficiaries.
The Centers for Medicare and Medicaid Services (CMS), which
administers the Medicare program, has fallen behind most other public
and private organizations in recognizing the danger of displaying
Social Security numbers. The Social Security Number Protection Act
ensures that the Social Security numbers of Medicare beneficiaries are
properly protected.
Every year, millions of Americans are victims of identity theft--many
after their Social Security numbers are stolen. Instead of leading by
example, the federal government is lagging behind private health
insurers and other public agencies in protecting Medicare recipients
from identity theft. CMS's continued use of Social Security numbers on
Medicare cards needlessly places people at risk.
This bill ensures that a premium is placed on security and that
personal information is protected. It makes no sense for a CMS to
continue exposing Medicare beneficiaries to the risk of identity theft.
We should pass this bill quickly and fix this problem once and for all.
I believe that this is one of those clear-cut problems that is easy
to fix. With identity theft on the rise, removing social security
numbers from Medicare beneficiary cards is the smart thing to do.
Identity theft is one of the fastest-growing crimes in the nation.
Nearly 8.4 million people were victims of identity theft last year
alone, and these crimes accounted for more than $49.3 billion in
fraudulent charges.
Nearly three years ago, Senator Durbin raised concerns about the use
of Social Security numbers on Medicare cards. Because of his efforts,
CMS issued a report to Congress hat outlined the steps that would be
required to remove Social Security numbers from Medicare cards, but has
failed to implement those changes.
In May 2008, the Inspector General of the Social Security
Administration issued a report which concluded that: ``Given the
millions of individuals at risk for identity the and OMB's directive to
eliminate unnecessary uses of Social Security numbers, we believe
immediate action is needed to address this significant vulnerability.
Today's legislation sets a timeframe for CMS to remove Social
Security numbers from Medicare cards and communications to
beneficiaries. The bill will:
Require the Health and Human Services Secretary to implement
procedures to eliminate the unnecessary collection, use, and display of
Social Security numbers of Medicare beneficiaries within three years;
Prohibit the display or the unencrypted electronic storage of Social
Security numbers on newly issued Medicare cards;
Prohibit the display or the unencrypted electronic storage of Social
Security numbers on all Medicare cards with five years of enactment;
and
Prohibit the display of Social Security numbers on written and
electronic communications to Medicare beneficiaries, unless essential
for the operation of the Medicare program.
I am proud to cosponsor legislation that will protect our elderly. I
urge my colleagues to join me in supporting this legislation.
Mr. DOGGETT. I yield back my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Doggett) that the House suspend the rules and
pass the bill, H.R. 6600, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I object to the vote on the
ground that a quorum is not present and make the point of order that a
quorum is not present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
The point of no quorum is considered withdrawn.

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