Medicare DMEPOS Competitive Bidding Improvement Act of 2014 - Amends title XVIII (Medicare) of the Social Security Act to require state licensure and a bid and surety bond of at least $50,000 for each area for bidding entities under the Medicare durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive acquisition program.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4920 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4920
To amend title XVIII of the Social Security Act to require State
licensure and performance guarantees for entities submitting bids under
the Medicare durable medical equipment, prosthetics, orthotics, and
supplies (DMEPOS) competitive acquisition program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2014
Mr. Tiberi (for himself, Mr. Larson of Connecticut, Mrs. Black, Mr.
Visclosky, Mr. Johnson of Ohio, and Mr. Joyce) introduced the following
bill; which was referred to the Committee on Energy and Commerce, and
in addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend title XVIII of the Social Security Act to require State
licensure and performance guarantees for entities submitting bids under
the Medicare durable medical equipment, prosthetics, orthotics, and
supplies (DMEPOS) competitive acquisition program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medicare DMEPOS Competitive Bidding
Improvement Act of 2014''.
SEC. 2. REQUIRING STATE LICENSURE AND PERFORMANCE GUARANTEES OF BIDDING
ENTITIES UNDER THE MEDICARE DMEPOS COMPETITIVE
ACQUISITION PROGRAM.
(a) In General.--Section 1847(a)(1) of the Social Security Act (42
U.S.C. 1395w-3(a)(1)) is amended by adding at the end the following new
subparagraphs:
``(G) Requiring state licensure and performance
guarantees for bidding entities.--With respect to
rounds of competitions beginning under this subsection
on or after the date of enactment of this subparagraph,
the Secretary may not accept a bid from an entity for
an area unless, as of the deadline for bid submission--
``(i) the entity meets applicable State
licensure requirements for such area for all
items in such bid for a product category; and
``(ii) the entity has obtained (and
provided the Secretary with proof of having
obtained) a bid and performance surety bond (in
this paragraph referred to as a `bid and
performance bond') in a form specified by the
Secretary consistent with subparagraph (H) and
in an amount that is not less than $50,000 for
each such area.
``(H) Treatment of bid and performance bonds
submitted.--
``(i) For successful bidders.--In the case
of a bidding entity that is offered a contract
for an area for a product category, if the
entity's composite bid--
``(I) is at or below the product
category's median composite bid rate
for the area and the entity does not
accept the contract offered for the
product and area, the bid and
performance bond submitted shall be
forfeited by the bidding entity and the
Secretary shall collect on it; or
``(II) is above such median
composite bid rate and the entity
chooses not to accept a contract for
the product category, the bid and
performance bond submitted shall be
returned within 90 days of the date of
notice of nonacceptance.
``(ii) Conversion into performance
guarantee upon contracting.--If a bidding
entity is offered and accepts the contract, the
bid and performance bond submitted shall be
retained as a performance guarantee under the
contract and--
``(I) shall be returned to the
entity within 90 days of the date of
completion of the contract; or
``(II) shall be collected on by the
Secretary if the contract is terminated
before the expiration of the contract.
``(iii) Return of bond for losing
bidders.--If a bidding entity submits a bid
that is not accepted for an area, the bid and
performance bond submitted for the entity for
such area shall be returned within 90 days of
the date of notice of nonacceptance.''.
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Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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