Congressman Peter Roskam

Representing the 6th District of Illinois

New GAO Study: Smart Cards Prevent Healthcare Fraud

Feb 23, 2016
Press Release

Washington, D.C — Yesterday, the Government Accountability Office (GAO) released a report on the likely effect of smart cards on healthcare fraud. GAO’s analysis found the use of smart cards could have helped prevent fraud schemes in more than 1 in 5 cases.

U.S. Representatives Peter J. Roskam (R-IL) and Earl Blumenauer (D-OR) released the following joint statement:

“Medicare fraud, waste, and abuse are costing us a staggering one billion dollars a week. This report confirms what we already knew — one common-sense way Medicare fraud can be prevented is by simply upgrading the technology seniors use to access healthcare services. That’s why we’ve introduced bipartisan legislation to implement smart card technology much like you would use at a gas station or the grocery store, so we can verify claims and improve the accuracy of the Medicare billing system. Reducing fraud saves taxpayer billions of dollars, protects seniors’ identities, and improves patient care.”

Kelli Emerick, Executive Director of the Secure ID Coalition, released the following statement:

"This new report from the GAO represents another addition to the growing body of evidence that smart cards are not only an effective means of ensuring program integrity in Medicare but are a critical tool for securely administering benefits in a healthcare setting.”

Mike Fox, Chief Commercial Officer ID at Valid USA, a Lisle, Illinois-based data security company, issued the following statement:

"The GAO report affirms smart cards are an innovative solution to prevent fraud in Medicare. We look forward to working with CMS to pilot a smart card solution to provide Medicare beneficiaries with the same level of cyber protection for their health care records as their financial transactions."

Background

In July, Reps. Roskam and Blumenauer introduced the Medicare Common Access Card Act (H.R. 3220) to protect seniors from identity theft and combat waste, fraud, and abuse in the Medicare system.

This GAO report comes on the heels of a recent study from the Congressional Budget Office (CBO) that projects the Medicare trust fund will reach insolvency within 10 years.