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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4920 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare DMEPOS Competitive Bidding 
Improvement Act of 2014''.

SEC. 2. REQUIRING STATE LICENSURE AND PERFORMANCE GUARANTEES OF BIDDING 
              ENTITIES UNDER THE MEDICARE DMEPOS COMPETITIVE 
              ACQUISITION PROGRAM.

    (a) In General.--Section 1847(a)(1) of the Social Security Act (42 
U.S.C. 1395w-3(a)(1)) is amended by adding at the end the following new 
subparagraphs:
                    ``(G) Requiring state licensure and performance 
                guarantees for bidding entities.--With respect to 
                rounds of competitions beginning under this subsection 
                on or after the date of enactment of this subparagraph, 
                the Secretary may not accept a bid from an entity for 
                an area unless, as of the deadline for bid submission--
                            ``(i) the entity meets applicable State 
                        licensure requirements for such area for all 
                        items in such bid for a product category; and
                            ``(ii) the entity has obtained (and 
                        provided the Secretary with proof of having 
                        obtained) a bid and performance surety bond (in 
                        this paragraph referred to as a `bid and 
                        performance bond') in a form specified by the 
                        Secretary consistent with subparagraph (H) and 
                        in an amount that is not less than $50,000 for 
                        each such area.
                    ``(H) Treatment of bid and performance bonds 
                submitted.--
                            ``(i) For successful bidders.--In the case 
                        of a bidding entity that is offered a contract 
                        for an area for a product category, if the 
                        entity's composite bid--
                                    ``(I) is at or below the product 
                                category's median composite bid rate 
                                for the area and the entity does not 
                                accept the contract offered for the 
                                product and area, the bid and 
                                performance bond submitted shall be 
                                forfeited by the bidding entity and the 
                                Secretary shall collect on it; or
                                    ``(II) is above such median 
                                composite bid rate and the entity 
                                chooses not to accept a contract for 
                                the product category, the bid and 
                                performance bond submitted shall be 
                                returned within 90 days of the date of 
                                notice of nonacceptance.
                            ``(ii) Conversion into performance 
                        guarantee upon contracting.--If a bidding 
                        entity is offered and accepts the contract, the 
                        bid and performance bond submitted shall be 
                        retained as a performance guarantee under the 
                        contract and--
                                    ``(I) shall be returned to the 
                                entity within 90 days of the date of 
                                completion of the contract; or
                                    ``(II) shall be collected on by the 
                                Secretary if the contract is terminated 
                                before the expiration of the contract.
                            ``(iii) Return of bond for losing 
                        bidders.--If a bidding entity submits a bid 
                        that is not accepted for an area, the bid and 
                        performance bond submitted for the entity for 
                        such area shall be returned within 90 days of 
                        the date of notice of nonacceptance.''.
                                 <all>
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