I 

114TH CONGRESS 

1ST SESSION H. R. 284 

To amend title XVIII of the Social Security Act to require State licensure 

and bid surety bonds 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 

JANUARY 12, 2015 

Mr. TIBERI (for himself, Mr. LARSON of Connecticut, Mr. KELLY of Pennsylvania, Mr. GIBBS, Mr. JOYCE, Mr. STIVERS, Mr. JOHNSON of Ohio, Mr. 

DAVID SCOTT of Georgia, Mr. JOHNSON of Georgia, Mr. THOMPSON of 

Pennsylvania, Mr. NEUGEBAUER, Ms. TSONGAS, Mr. HANNA, Mr. HARPER, Mr. CRENSHAW, Mr. LANGEVIN, Mr. ROE of Tennessee, Ms. PINGREE, Mr. AMODEI, Mr. ROKITA, Mr. RYAN of Ohio, Mrs. MILLER of 

Michigan, Mr. TIPTON, Mr. BARLETTA, Mrs. WALORSKI, Mr. LOEBSACK, 

Ms. SLAUGHTER, and Ms. DUCKWORTH) 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 bid surety bonds for entities submitting bids under the Medicare durable medical equipment, 

prosthetics, orthotics, and supplies (DMEPOS) competitive acquisition program, 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. SHORT TITLE. 

2 This Act may be cited as the ‘‘Medicare DMEPOS 

3 Competitive Bidding Improvement Act of 2015’’. 

4 SEC. 2. REQUIRING STATE LICENSURE AND BID SURETY 

5 BONDS FOR ENTITIES SUBMITTING BIDS 

6 UNDER THE MEDICARE DMEPOS COMPETI7 TIVE ACQUISITION PROGRAM. 

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

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

10 the following new subparagraphs: 

11 ‘‘(G) REQUIRING STATE LICENSURE AND

12 BID BONDS FOR BIDDING ENTITIES.—With re13 spect to rounds of competitions beginning under 

14 this subsection on or after the date of enact15 ment of this subparagraph, the Secretary may 

16 not accept a bid from an entity for an area un17 less, as of the deadline for bid submission— 

18 ‘‘(i) the entity meets applicable State 

19 licensure requirements for such area for all 

20 items in such bid for a product category; 

21 and 

22 ‘‘(ii) the entity has obtained (and pro23 vided the Secretary with proof of having 

24 obtained) a bid surety bond (in this para25 graph referred to as a ‘bid bond’) in a 

26 form specified by the Secretary consistent 


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1 with subparagraph (H) and in an amount 

2 that is not less than $50,000 and not more 

3 than $100,000 for each such area. 

4 ‘‘(H) TREATMENT OF BID BONDS SUB5 MITTED.— 

6 ‘‘(i) FOR SUCCESSFUL BIDDERS THAT

7 DO NOT ACCEPT THE CONTRACT.—In the 

8 case of a bidding entity that is offered a 

9 contract for an area for a product cat10 egory, if the entity’s composite bid— 

11 ‘‘(I) is at or below the product 

12 category’s median composite bid rate 

13 for the area and the entity does not 

14 accept the contract offered for the 

15 product and area, the bid bond sub16 mitted shall be forfeited by the bid17 ding entity and the Secretary shall 

18 collect on it; or 

19 ‘‘(II) is above such median com20 posite bid rate and the entity chooses 

21 not to accept a contract for the prod22 uct category, the bid bond submitted 

23 shall be returned within 90 days of 

24 the date of notice of nonacceptance. 


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1 ‘‘(ii) FOR LOSING BIDDERS.—If a bid2 ding entity submits a bid that is not ac3 cepted for an area, the bid bond submitted 

4 for the entity for such area shall be re5 turned within 90 days of the date of notice 

6 of nonacceptance.’’. 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS