; and (iv) with respect to which a person who is an officer or managing employee (as defined in section 1126(b)) of such entity also is such an officer or managing employee of such sanctioned entity. (D) For purposes of this paragraph, the term person with an ownership or control interest has the meaning given such term in section 1124(a)(3). . 3. Reports on incidences of fraud and abuse under Medicare parts C and D (a) In general Section 1857(d) of the Social Security Act ( 42 U.S.C. 1395w–27(d) ) is amended by adding at the end the following new paragraph: (7) Report on incidences of fraud and abuse (A) In general A contract under this section with an MA organization offering an MA plan shall provide that such MA organization report to the Secretary (or to any person or organization designated by the Secretary for such purpose) any instances of fraud or abuse related to the payment or delivery of health benefits under such contract not later than 60 days after such organization identifies such instance. (B) Guidance Not later than 90 days after the date of the enactment of this paragraph, the Secretary, in consultation with the Inspector General of the Department of Health and Human Services and the Attorney General, shall issue to MA organizations (and PDP sponsors) guidance for defining the terms fraud and abuse for purposes of subparagraph (A). . (b) Conforming amendment to part D Section 1860D–12(b)(3)(C) of the Social Security Act ( 42 U.S.C. 1395w–112(b)(3)(C) ) is amended by inserting before the period at the end the following: , except in applying paragraph (7) of such section any reference to an MA organization, with respect to an MA plan, shall be deemed a reference to a PDP sponsor or MA organization, with respect to a prescription drug plan or MA–PD plan . (c) Effective date The amendments made by subsections (a) and (b) shall apply with respect to plan years beginning on or after the date of the enactment of this Act.