I 

113TH CONGRESS 

2D SESSION H. R. 4920 

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

and performance guarantees 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 

JUNE 19, 2014 

Mr. TIBERI (for himself, Mr. LARSON of Connecticut, Mrs. BLACK, Mr. VISCLOSKY, Mr. JOHNSON of Ohio, and Mr. JOYCE) 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 performance guarantees 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 2014’’. 

4 SEC. 2. REQUIRING STATE LICENSURE AND PERFORMANCE 

5 GUARANTEES OF BIDDING ENTITIES UNDER 

6 THE MEDICARE DMEPOS COMPETITIVE AC7 QUISITION PROGRAM. 

8 (a) IN GENERAL.—Section 1847(a)(1) of the Social 

9 Security Act (42 U.S.C. 1395w–3(a)(1)) is amended by 

10 adding at the end the following new subparagraphs: 

11 ‘‘(G) REQUIRING STATE LICENSURE AND

12 PERFORMANCE GUARANTEES FOR BIDDING EN13 TITIES.—With respect to rounds of competi14 tions beginning under this subsection on or 

15 after the date of enactment of this subpara16 graph, the Secretary may not accept a bid from 

17 an entity for an area unless, as of the deadline 

18 for bid submission— 

19 ‘‘(i) the entity meets applicable State 

20 licensure requirements for such area for all 

21 items in such bid for a product category; 

22 and 

23 ‘‘(ii) the entity has obtained (and pro24 vided the Secretary with proof of having 

25 obtained) a bid and performance surety 

26 bond (in this paragraph referred to as a 


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1 ‘bid and performance bond’) in a form 

2 specified by the Secretary consistent with 

3 subparagraph (H) and in an amount that 

4 is not less than $50,000 for each such 

5 area. 

6 ‘‘(H) TREATMENT OF BID AND PERFORM7 ANCE BONDS SUBMITTED.— 

8 ‘‘(i) FOR SUCCESSFUL BIDDERS.—In 

9 the case of a bidding entity that is offered 

10 a contract for an area for a product cat11 egory, if the entity’s composite bid— 

12 ‘‘(I) is at or below the product 

13 category’s median composite bid rate 

14 for the area and the entity does not 

15 accept the contract offered for the 

16 product and area, the bid and per17 formance bond submitted shall be for18 feited by the bidding entity and the 

19 Secretary shall collect on it; or 

20 ‘‘(II) is above such median com21 posite bid rate and the entity chooses 

22 not to accept a contract for the prod23 uct category, the bid and performance 

24 bond submitted shall be returned 


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1 within 90 days of the date of notice of 

2 nonacceptance. 

3 ‘‘(ii) CONVERSION INTO PERFORM4 ANCE GUARANTEE UPON CONTRACTING.— 

5 If a bidding entity is offered and accepts 

6 the contract, the bid and performance 

7 bond submitted shall be retained as a per8 formance guarantee under the contract 

9 and— 

10 ‘‘(I) shall be returned to the enti11 ty within 90 days of the date of com12 pletion of the contract; or 

13 ‘‘(II) shall be collected on by the 

14 Secretary if the contract is terminated 

15 before the expiration of the contract. 

16 ‘‘(iii) RETURN OF BOND FOR LOSING

17 BIDDERS.—If a bidding entity submits a 

18 bid that is not accepted for an area, the 

19 bid and performance bond submitted for 

20 the entity for such area shall be returned 

21 within 90 days of the date of notice of 

22 nonacceptance.’’. 

Æ 


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