§213. PERMISSIVE EXCLUSION OF INDIVIDUALS WITH OWNERSHIP OR CONTROL INTEREST IN SANCTIONED ENTITIES.

Health Insurance Portability and Accountability Act of 1996

TITLE II—PREVENTING HEALTH CARE FRAUD AND ABUSE; ADMINISTRATIVE SIMPLIFICATION

Section 1128(b) (42 U.S.C. 1320a-7(b)) is amended by adding at the end the following new paragraph:

‘‘(15) Individuals controlling a sanctioned entity.— (A) Any individual—

‘‘(i) who has a direct or indirect ownership or control interest in a sanctioned entity and who knows or should know (as defined in section 1128A(i)(6)) of the action constituting the basis for the conviction or exclusion described in subparagraph (B); or

‘‘(ii) who is an officer or managing employee (as defined in section 1126(b)) of such an entity.

‘‘(B) For purposes of subparagraph (A), the term 'sanctioned entity' means an entity—

‘‘(i) that has been convicted of any offense described in subsection (a) or in paragraph (1), (2), or (3) of this subsection; or

‘‘(ii) that has been excluded from participation under a program under title XVIII or under a State health care program.’’.