Illinois Sen. Mark Kirk and U.S. Rep Bob Dold are sponsoring bipartisan legislation to fight the problem.
As part of a pilot program, "smart card" technology would replace social security numbers that are currently displayed on Medicare cards.
Lawmakers say this technology is also used by the U.S. Department of Defense and it will help reduce identity theft among seniors.
According to a government report, fraudulent Medicare claims robbed taxpayers of $48 billion in 2010.
