I 

111TH CONGRESS 

1ST SESSION H. R. 203 

To amend titles XI and XVIII of the Social Security Act to provide increased 

civil and criminal penalties for acts involving fraud and abuse under 

the Medicare Program and to increase the amount of the surety bond 

required for suppliers of durable medical equipment. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. STEARNS introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy 

and Commerce, 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 titles XI and XVIII of the Social Security Act 

to provide increased civil and criminal penalties for acts 

involving fraud and abuse under the Medicare Program 

and to increase the amount of the surety bond required 

for suppliers of durable medical equipment. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Medicare Fraud Pre5 vention Act of 2009’’. 


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1 SEC. 2. INCREASED CIVIL MONEY PENALTIES AND CRIMI2 NAL FINES FOR MEDICARE FRAUD AND 

3 ABUSE. 

4 (a) INCREASED CIVIL MONEY PENALTIES.—Section 

5 1128A of the Social Security Act (42 U.S.C. 1320a–7a) 

6 is amended— 

7 (1) in subsection (a), in the flush matter fol8 lowing paragraph (7)— 

9 (A) by striking ‘‘$10,000’’ each place it 

10 appears and inserting ‘‘$20,000’’; 

11 (B) by striking ‘‘$15,000’’ and inserting 

12 ‘‘$30,000’’; and 

13 (C) by striking ‘‘$50,000’’ and inserting 

14 ‘‘$100,000’’; and 

15 (2) in subsection (b)— 

16 (A) in paragraph (1), in the flush matter 

17 following subparagraph (B), by striking 

18 ‘‘$2,000’’ and inserting ‘‘$4,000’’; 

19 (B) in paragraph (2), by striking ‘‘$2,000’’ 

20 and inserting ‘‘$4,000’’; and 

21 (C) in paragraph (3)(A)(i), by striking 

22 ‘‘$5,000’’ and inserting ‘‘$10,000’’. 

23 (b) INCREASED CRIMINAL FINES.—Section 1128B of 

24 the Social Security Act (42 U.S.C. 1320a–7b) is amend25 ed— 


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1 (1) in subsection (a), in the flush matter fol2 lowing paragraph (6)— 

3 (A) by striking ‘‘$25,000’’ and inserting 

4 ‘‘$100,000’’; and 

5 (B) by striking ‘‘$10,000’’ and inserting 

6 ‘‘$20,000’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (1), in the flush matter 

9 following subparagraph (B), by striking 

10 ‘‘$25,000’’ and inserting ‘‘$100,000’’; and 

11 (B) in paragraph (2), in the flush matter 

12 following subparagraph (B), by striking 

13 ‘‘$25,000’’ and inserting ‘‘$100,000’’; 

14 (3) in subsection (c), by striking ‘‘$25,000’’ and 

15 inserting ‘‘$100,000’’; 

16 (4) in subsection (d), in the second flush matter 

17 following subparagraph (B), by striking ‘‘$25,000’’ 

18 and inserting ‘‘$100,000’’; and 

19 (5) in subsection (e), by striking ‘‘$2,000’’ and 

20 inserting ‘‘$4,000’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to civil money penalties and fines 

23 imposed for actions taken on or after the date of enact24 ment of this Act. 


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1 SEC. 3. INCREASED SENTENCES FOR FELONIES INVOLVING 

2 MEDICARE FRAUD AND ABUSE. 

3 (a) FALSE STATEMENTS AND REPRESENTATIONS.— 

4 Section 1128B(a) of the Social Security Act (42 U.S.C. 

5 1320a–7b(a)) is amended, in clause (i) of the flush matter 

6 following paragraph (6), by striking ‘‘not more than 5 

7 years’’ and inserting ‘‘not more than 10 years’’. 

8 (b) ANTI-KICKBACK.—Section 1128B(b) of the So9 cial Security Act (42 U.S.C. 1320a–7b(b)) is amended— 

10 (1) in paragraph (1), in the flush matter fol11 lowing subparagraph (B), by striking ‘‘not more 

12 than 5 years’’ and inserting ‘‘not more than 10 

13 years’’; and 

14 (2) in paragraph (2), in the flush matter fol15 lowing subparagraph (B), by striking ‘‘not more 

16 than 5 years’’ and inserting ‘‘not more than 10 

17 years’’. 

18 (c) FALSE STATEMENT OR REPRESENTATION WITH

19 RESPECT TO CONDITIONS OR OPERATIONS OF FACILI20 TIES.—Section 1128B(c) of the Social Security Act (42 

21 U.S.C. 1320a–7b(c)) is amended by striking ‘‘not more 

22 than 5 years’’ and inserting ‘‘not more than 10 years’’. 

23 (d) EXCESS CHARGES.—Section 1128B(d) of the So24 cial Security Act (42 U.S.C. 1320a–7b(d)) is amended, in 

25 the second flush matter following subparagraph (B), by 


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1 striking ‘‘not more than 5 years’’ and inserting ‘‘not more 

2 than 10 years’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to criminal penalties imposed for 

5 actions taken on or after the date of enactment of this 

6 Act. 

7 SEC. 4. INCREASED SURETY BOND REQUIREMENT FOR SUP8 PLIERS OF DME. 

9 (a) IN GENERAL.—Section 1834(a)(16)(B) of the So10 cial Security Act (42 U.S.C. 1395m(a)(16)(B)) is amend11 ed by striking ‘‘$50,000’’ and inserting ‘‘$500,000’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to the issuance (or renewal) of a 

14 provider number for a supplier of durable medical equip15 ment on or after the date of enactment of this Act. 

Æ 


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