(a) In General.--Part E of title XVIII of the Social Security Act 
(42 U.S.C. 1395x et seq.), as amended by the preceding provisions of 
this Act, is amended by adding at the end the following new section:

``SEC. 1899D. IMPLEMENTING ARTIFICIAL INTELLIGENCE TOOLS FOR PURPOSES 
              OF REDUCING AND RECOUPING IMPROPER PAYMENTS.

    ``(a) In General.--Not later than January 1, 2027, the Secretary 
shall implement such artificial intelligence tools determined 
appropriate by the Secretary for purposes of--
            ``(1) reducing improper payments made under parts A and B; 
        and
            ``(2) identifying any such improper payments so made.
    ``(b) Contracts.--The Secretary shall seek to contract with a 
vendor of artificial intelligence tools and with data scientists for 
purposes of implementing the artificial intelligence tools required 
under subsection (a).
    ``(c) Recoupment.--The Secretary shall, to the extent practicable, 
recoup payments identified using the artificial intelligence tools 
implemented under subsection (a).
    ``(d) Report.--Not later than January 1, 2029, and not less 
frequently than annually thereafter, the Secretary shall report to 
Congress on the implementation of artificial intelligence tools under 
subsection (a) and the recoupment of improper payments under subsection 
(c). Such report shall include--
            ``(1) a description of any opportunities for further 
        reducing rates of improper payments described in subsection 
        (a)(1) or further increasing rates of recoupment of such 
        payments;
            ``(2) the total dollar amount of improper payments recouped 
        in the most recent year for which data is available; and
            ``(3) in the case that the Secretary fails to reduce the 
        rate of improper payments by 50 percent in such most recent 
        year as compared to the year prior to such most recent year, a 
        description of the reasons for such failure.''.
    (b) Implementation Funding.--
            (1) Federal hospital insurance trust fund.--The Secretary 
        of Health and Human Services shall provide for the transfer 
        from the Federal Hospital Insurance Trust Fund established 
        under section 1817 of the Social Security Act (42 U.S.C. 1395i) 
        to the Centers for Medicare & Medicaid Services Program 
        Management Account of $12,500,000 for fiscal year 2025 for 
        purposes of carrying out the amendment made by this section, to 
        remain available until expended.
            (2) Federal supplementary medical insurance trust fund.--
        The Secretary of Health and Human Services shall provide for 
        the transfer, from the Federal Supplementary Medical Insurance 
        Trust Fund established under section 1841 of the Social 
        Security Act (42 U.S.C. 1395t) to the Centers for Medicare & 
        Medicaid Services Program Management Account of $12,500,000 for 
        fiscal year 2025 for purposes of carrying out the amendment 
        made by this section, to remain available until expended.
