II 

113TH CONGRESS 

1ST SESSION S. 1265 

To amend title XVIII of the Social Security Act to delay the implementation 

of round 2 of the Medicare DMEPOS Competitive Acquisition Program 

for competitive acquisition areas in Tennessee, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 27, 2013 

Mr. ALEXANDER (for himself and Mr. CORKER) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend title XVIII of the Social Security Act to delay 

the implementation of round 2 of the Medicare 

DMEPOS Competitive Acquisition Program for competitive acquisition areas in Tennessee, and for other purposes. 

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


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1 SECTION 1. DELAY IN IMPLEMENTATION OF ROUND 2 OF 

2 MEDICARE DMEPOS COMPETITIVE ACQUISI3 TION PROGRAM FOR COMPETITIVE ACQUISI4 TION AREAS IN TENNESSEE. 

5 Section 1847(a)(1) of the Social Security Act (42 

6 U.S.C. 1395w–3(a)(1)) is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(G) DELAY IN IMPLEMENTATION OF

9 ROUND 2 FOR COMPETITIVE ACQUISITION

10 AREAS IN TENNESSEE.—Notwithstanding any 

11 other provision of this section and in imple12 menting the second round of the competitive ac13 quisition programs under this section described 

14 in subparagraph (B)(i)(II) with respect to com15 petitive acquisition areas in Tennessee, the fol16 lowing shall apply: 

17 ‘‘(i) The contracts awarded under this 

18 section before the date of the enactment of 

19 this subparagraph with respect to competi20 tive acquisition areas in Tennessee for 

21 such round are terminated, no payment 

22 shall be made under this title on or after 

23 the date of the enactment of this subpara24 graph based on such a contract, and, to 

25 the extent that any damages may be appli26 cable as a result of the termination of such 


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1 contracts, such damages shall be payable 

2 from the Federal Supplementary Medical 

3 Insurance Trust Fund under section 1841. 

4 Nothing in this clause shall be construed 

5 to provide an independent cause of action 

6 or right to administrative or judicial review 

7 with regard to the termination provided 

8 under this clause. 

9 ‘‘(ii) The Secretary shall as soon as 

10 possible conduct a rebid of the competition 

11 for such round in such areas in accordance 

12 with the requirements of this section, in13 cluding the requirement that suppliers 

14 meet State licensing requirements. 

15 ‘‘(iii) Such round shall be imple16 mented in such areas as soon as possible 

17 after the conduct of the rebid under clause 

18 (ii). 

19 ‘‘(iv)(I) In the case of any competition 

20 in such areas for which bids are requested 

21 on or after the date of enactment of this 

22 subparagraph, the Secretary shall impose a 

23 civil money penalty in the amount of 

24 $10,000 on the entity contracted to imple25 ment the competitive bidding program 


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1 under this section for each instance in 

2 which information supplied by the entity— 

3 ‘‘(aa) is incorrect; and 

4 ‘‘(bb) results in the Secretary 

5 awarding a contract to a supplier 

6 under the competition in such areas to 

7 a supplier not licensed by the State of 

8 Tennessee. 

9 ‘‘(II) Any penalty under subclause (I) 

10 shall be imposed and collected in the same 

11 manner as civil money penalties under sub12 section (a) of section 1128A are imposed 

13 and collected under that section.’’. 

Æ 


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