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 Medi-
care 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. VIS-
CLOSKY, 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 sub-
sequently 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 Representa-
tives of the United States of America in Congress assembled, 
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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 AC-
QUISITION 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 EN-
TITIES.—With respect to rounds of competi-
tions beginning under this subsection on or 
after the date of enactment of this subpara-
graph, 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 pro-
vided the Secretary with proof of having 
obtained) a bid and performance surety 
bond (in this paragraph referred to as a 
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‘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 PERFORM-
ANCE BONDS SUBMITTED.— 
‘‘(i) FOR SUCCESSFUL BIDDERS.—In 
the case of a bidding entity that is offered 
a contract for an area for a product cat-
egory, 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 per-
formance bond submitted shall be for-
feited by the bidding entity and the 
Secretary shall collect on it; or 
‘‘(II) is above such median com-
posite bid rate and the entity chooses 
not to accept a contract for the prod-
uct category, the bid and performance 
bond submitted shall be returned 
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within 90 days of the date of notice of 
nonacceptance. 
‘‘(ii) CONVERSION
INTO
PERFORM-
ANCE GUARANTEE UPON CONTRACTING.— 
If a bidding entity is offered and accepts 
the contract, the bid and performance 
bond submitted shall be retained as a per-
formance guarantee under the contract 
and— 
‘‘(I) shall be returned to the enti-
ty within 90 days of the date of com-
pletion 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.’’. 
Æ 
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