I 

111TH CONGRESS 

1ST SESSION H. R. 1970 

To amend title XVIII of the Social Security Act to exempt unsanctioned 

State-licensed retail pharmacies from the surety bond requirement under 

the Medicare Program for suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2009 

Mr. SPACE (for himself, Mrs. EMERSON, and Mr. BERRY) 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 exempt 

unsanctioned State-licensed retail pharmacies from the 

surety bond requirement under the Medicare Program 

for suppliers of durable medical equipment, prosthetics, 

orthotics, and supplies (DMEPOS). 

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 ‘‘Preserve Patient Ac5 cess to Reputable DMEPOS Providers Act of 2009’’. 


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1 SEC. 2. APPLICATION OF DMEPOS SURETY BOND REQUIRE2 MENT TO CERTAIN RETAIL PHARMACIES. 

3 (a) IN GENERAL.—Section 1834(a)(16) of the Social 

4 Security Act (42 U.S.C. 1395m(a)(16)) is amended by 

5 adding at the end the following new sentences: ‘‘The re6 quirement of a bond under subparagraph (B) shall only 

7 apply to a State-licensed retail pharmacy or a mail-order 

8 pharmacy if there has been a final adverse action (as de9 fined in section 424.57(a) of title 42, Code of Federal Reg10 ulations, as in effect on the date of the enactment of this 

11 Act) that is not subject to administrative or judicial appeal 

12 taken against such respective pharmacy during the 10- 

13 year period preceding the issuance (or renewal) under this 

14 part of the provider number involved. In the case of a 

15 chain of such pharmacies (or other grouping of more than 

16 one such pharmacy), the previous sentence shall be applied 

17 separately to each such pharmacy within such chain (or 

18 grouping). For purposes of this paragraph, the term 

19 ‘State-licensed retail pharmacy’ means any State-licensed 

20 independent, chain, supermarket, or mass merchandiser 

21 pharmacy and the term ‘mail-order pharmacy’ means a 

22 pharmacy that is State-licensed and that conducts its 

23 pharmaceutical business primarily through mail services.’’. 

24 (b) TREATMENT OF CURRENT DMEPOS SURETY

25 BOND EXEMPTIONS.—Nothing in the amendment made 

26 by subsection (a) shall affect the application of any exempVerDate Nov 24 2008 02:13 Apr 07, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1970.IH H1970

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1 tion specified in section 424.57(d)(15) of title 42, Code 

2 of Federal Regulations (as in effect as of the date of the 

3 enactment of this Act). 

4 (c) EFFECTIVE DATE; RELEASE FROM OBLIGATION

5 WITH RESPECT TO CERTAIN SURETY BONDS.— 

6 (1) EFFECTIVE DATE.—The amendment made 

7 by this section shall take effect as of the date of the 

8 enactment of this Act and shall apply to provider 

9 numbers issued or renewed before, on, or after such 

10 date. 

11 (2) RELEASE FROM OBLIGATION WITH RESPECT

12 TO CERTAIN SURETY BONDS.—In the case of a 

13 State-licensed retail pharmacy or mail-order phar14 macy (as such terms are defined in the last sentence 

15 of section 1834(a)(16) of the Social Security Act, as 

16 added by subsection (a)) to which the surety bond 

17 requirement under subparagraph (B) of such section 

18 does not apply under the amendment made by sub19 section (a) but for which a surety bond was provided 

20 prior to the date of the enactment of this Act, the 

21 respective pharmacy is released from any obligation 

22 under title XVIII of the Social Security Act with re23 spect to such bond and, upon request, the Secretary 


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1 of Health and Human Services shall provide such 

2 pharmacy with a document indicating such release. 

Æ 


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