To amend title XVIII of the Social Security Act to permit a Medicare beneficiary to elect to take ownership, or to decline ownership, of a certain item of complex durable medical equipment after the 13-month capped rental period ends.

Summary: Amends title XVIII (Medicare) of the Social Security Act to permit a Medicare beneficiary to elect to take, or decline to take, ownership of a Group 3 Support Surface item of complex durable medical equipment (DME) after the 13-month capped rental period ends.

SECTION 1. ELECTION TO TAKE OWNERSHIP, OR TO DECLINE OWNERSHIP, OF A 
              CERTAIN ITEM OF COMPLEX DURABLE MEDICAL EQUIPMENT AFTER 
              THE 13-MONTH CAPPED RENTAL PERIOD ENDS.

    (a) In General.--Section 1834(a)(7)(A) of the Social Security Act 
(42 U.S.C. 1395m(a)(7)(A)) is amended--
            (1) in clause (ii)--
                    (A) by striking ``rental.--On'' and inserting 
                ``rental.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), on''; and
                    (B) by adding at the end the following new 
                subclause:
                                    ``(II) Option to accept or reject 
                                transfer of title to group 3 support 
                                surface.--
                                            ``(aa) In general.--During 
                                        the 10th continuous month 
                                        during which payment is made 
                                        for the rental of a Group 3 
                                        Support Surface under clause 
                                        (i), the supplier of such item 
                                        shall offer the individual the 
                                        option to accept or reject 
                                        transfer of title to a Group 3 
                                        Support Surface after the 13th 
                                        continuous month during which 
                                        payment is made for the rental 
                                        of the Group 3 Support Surface 
                                        under clause (i). Such title 
                                        shall be transferred to the 
                                        individual only if the 
                                        individual notifies the 
                                        supplier not later than 1 month 
                                        after the supplier makes such 
                                        offer that the individual 
                                        agrees to accept transfer of 
                                        the title to the Group 3 
                                        Support Surface. Unless the 
                                        individual accepts transfer of 
                                        title to the Group 3 Support 
                                        Surface in the manner set forth 
                                        in this subclause, the 
                                        individual shall be deemed to 
                                        have rejected transfer of 
                                        title. If the individual agrees 
                                        to accept the transfer of the 
                                        title to the Group 3 Support 
                                        Surface, the supplier shall 
                                        transfer such title to the 
                                        individual on the first day 
                                        that begins after the 13th 
                                        continuous month during which 
                                        payment is made for the rental 
                                        of the Group 3 Support Surface 
                                        under clause (i). If the 
                                        supplier transfers title to the 
                                        Group 3 Support Surface under 
                                        this subclause, payments for 
                                        maintenance and servicing after 
                                        the transfer of title shall be 
                                        made in accordance with clause 
                                        (iv). If the individual rejects 
                                        transfer of title under this 
                                        subclause, payments for 
                                        maintenance and servicing after 
                                        the end of the period of 
                                        medical need during which 
                                        payment is made under clause 
                                        (i) shall be made in accordance 
                                        with clause (v).
                                            ``(bb) Special rule.--If, 
                                        on the effective date of this 
                                        subclause, an individual's 
                                        rental period for a Group 3 
                                        Support Surface has exceeded 10 
                                        continuous months, but the 
                                        first day that begins after the 
                                        13th continuous month during 
                                        which payment is made for the 
                                        rental under clause (i) has not 
                                        been reached, the supplier 
                                        shall, within 1 month following 
                                        such effective date, offer the 
                                        individual the option to accept 
                                        or reject transfer of title to 
                                        a Group 3 Support Surface. Such 
                                        title shall be transferred to 
                                        the individual only if the 
                                        individual notifies the 
                                        supplier not later than 1 month 
                                        after the supplier makes such 
                                        offer that the individual 
                                        agrees to accept transfer of 
                                        title to the Group 3 Support 
                                        Surface. Unless the individual 
                                        accepts transfer of title to 
                                        the Group 3 Support Surface in 
                                        the manner set forth in this 
                                        subclause, the individual shall 
                                        be deemed to have rejected 
                                        transfer of title. If the 
                                        individual agrees to accept the 
                                        transfer of the title to the 
                                        Group 3 Support Surface, the 
                                        supplier shall transfer such 
                                        title to the individual on the 
                                        first day that begins after the 
                                        13th continuous month during 
                                        which payment is made for the 
                                        rental of the Group 3 Support 
                                        Surface under clause (i) unless 
                                        that day has passed, in which 
                                        case the supplier shall 
                                        transfer such title to the 
                                        individual not later than 1 
                                        month after notification that 
                                        the individual accepts transfer 
                                        of title. If the supplier 
                                        transfers title to the Group 3 
                                        Support Surface under this 
                                        subclause, payments for 
                                        maintenance and servicing after 
                                        the transfer of title shall be 
                                        made in accordance with clause 
                                        (iv). If the individual rejects 
                                        transfer of title under this 
                                        subclause, payments for 
                                        maintenance and servicing after 
                                        the end of the period of 
                                        medical need during which 
                                        payment is made under clause 
                                        (i) shall be made in accordance 
                                        with clause (v).'';
            (2) in clause (iv), in the heading, by inserting ``after 
        transfer of title'' after ``servicing''; and
            (3) by adding at the end the following new clause:
                            ``(v) Maintenance and servicing of group 3 
                        support surface if individual rejects transfer 
                        of title.--In the case of a Group 3 Support 
                        Surface for which the individual has rejected 
                        transfer of title under subclause (ii)(II)--
                                    ``(I) during the first 6-month 
                                period of medical need that follows the 
                                period of medical need during which 
                                payment is made under clause (i), no 
                                payment shall be made for rental or 
                                maintenance and servicing of the Group 
                                3 Support Surface; and
                                    ``(II) during the first month of 
                                each succeeding 6-month period of 
                                medical need, a maintenance and 
                                servicing payment may be made (for 
                                parts and labor not covered by the 
                                supplier's or manufacturer's warranty, 
                                as determined by the Secretary to be 
                                appropriate for the Group 3 Support 
                                Surface) and the amount recognized for 
                                each such 6-month period is the lower 
                                of--
                                            ``(aa) a reasonable and 
                                        necessary maintenance and 
                                        servicing fee or fees 
                                        established by the Secretary; 
                                        or
                                            ``(bb) 10 percent of the 
                                        total of the purchase price 
                                        recognized under paragraph (8) 
                                        with respect to the Group 3 
                                        Support Surface.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.