such standards and requirement if the 
Secretary determines that licensing, 
accreditation, or other mandatory 
quality requirements apply to such 
professionals and persons with respect 
to the furnishing of such items and 
services.’’. 
(B) 
CONSTRUCTION.—Section 
1834(a)(20)(F)(ii) of the Social Security Act, 
as added by subparagraph (A), shall not be con-
strued as preventing the Secretary of Health 
and Human Services from implementing the 
first round of competition under section 1847 
of such Act on a timely basis. 
(2) DISCLOSURE OF SUBCONTRACTORS UNDER 
COMPETITIVE
ACQUISITION
PROGRAM.—Section 
1847(b)(3) of such Act (42 U.S.C. 1395w–3(b)(3)) 
is amended by adding at the end the following new 
subparagraph: 
‘‘(C) 
DISCLOSURE
OF
SUBCONTRAC-
TORS.— 
‘‘(i) INITIAL DISCLOSURE.—Not later 
than 10 days after the date a supplier en-
ters into a contract with the Secretary 
under this section, such supplier shall dis-
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close to the Secretary, in a form and man-
ner specified by the Secretary, the infor-
mation on— 
‘‘(I) each subcontracting relation-
ship that such supplier has in fur-
nishing items and services under the 
contract; and 
‘‘(II) whether each such subcon-
tractor meets the requirement of sec-
tion 1834(a)(20)(F)(i), if applicable 
to such subcontractor. 
‘‘(ii) SUBSEQUENT DISCLOSURE.—Not 
later than 10 days after such a supplier 
subsequently enters into a subcontracting 
relationship described in clause (i)(II), 
such supplier shall disclose to the Sec-
retary, in such form and manner, the in-
formation described in subclauses (I) and 
(II) of clause (i).’’. 
(3) COMPETITIVE ACQUISITION OMBUDSMAN.— 
Such section is further amended by adding at the 
end the following new subsection: 
‘‘(f) COMPETITIVE ACQUISITION OMBUDSMAN.—The 
Secretary shall provide for a competitive acquisition om-
budsman within the Centers for Medicare & Medicaid 
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Services in order to respond to complaints and inquiries 
made by suppliers and individuals relating to the applica-
tion of the competitive acquisition program under this sec-
tion. The ombudsman may be within the office of the 
Medicare Beneficiary Ombudsman appointed under sec-
tion 1808(c). The ombudsman shall submit to Congress 
an annual report on the activities under this subsection, 
which report shall be coordinated with the report provided 
under section 1808(c)(2)(C).’’. 
(c) CHANGE IN REPORTS AND DEADLINES.— 
(1) GAO REPORT.—Section 302(b)(3) of the 
Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 (Public Law 108–173) is 
amended— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘and as amended by 
section 2 of the Medicare DMEPOS Com-
petitive Acquisition Reform Act of 2008’’ 
after ‘‘as amended by paragraph (1)’’; and 
(ii) by inserting before the period at 
the end the following: ‘‘and the topics spec-
ified in subparagraph (C)’’; 
(B) in subparagraph (B), by striking ‘‘Not 
later than January 1, 2009,’’ and inserting 
‘‘Not later than 1 year after the first date that 
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payments are made under section 1847 of the 
Social Security Act,’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) TOPICS.—The topics specified in this 
subparagraph, for the study under subpara-
graph (A) concerning the competitive acquisi-
tion program, are the following: 
‘‘(i) Beneficiary access to items and 
services under the program, including the 
impact on such access of awarding con-
tracts to bidders that— 
‘‘(I) did not have a physical pres-
ence in an area where they received a 
contract; or 
‘‘(II) had no previous experience 
providing the product category they 
were contracted to provide. 
‘‘(ii) Beneficiary satisfaction with the 
program and cost savings to beneficiaries 
under the program. 
‘‘(iii) Costs to suppliers of partici-
pating in the program and recommenda-
tions about ways to reduce those costs 
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without compromising quality standards or 
savings to the Medicare program. 
‘‘(iv) Impact of the program on small 
business suppliers. 
‘‘(v) Analysis of the impact on utiliza-
tion of different items and services paid 
within the same Healthcare Common Pro-
cedure Coding System (HCPCS) code. 
‘‘(vi) Costs to the Centers for Medi-
care & Medicaid Services, including pay-
ments made to contractors, for admin-
istering the program compared with ad-
ministration of a fee schedule, in compari-
son with the relative savings of the pro-
gram. 
‘‘(vii) Impact on access, Medicare 
spending, and beneficiary spending of any 
difference in treatment for diabetic testing 
supplies depending on how such supplies 
are furnished. 
‘‘(viii) Such other topics as the Comp-
troller General determines to be appro-
priate.’’. 
(2) DELAY IN OTHER DEADLINES.— 
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(A) PROGRAM ADVISORY AND OVERSIGHT 
COMMITTEE.—Section 1847(c)(5) of the Social 
Security Act (42 U.S.C. 1395w–3(c)(5)) is 
amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2011’’. 
(B) 
SECRETARIAL
REPORT.—Section 
1847(d) of such Act (42 U.S.C. 1395w–3(d)) is 
amended by striking ‘‘July 1, 2009’’ and insert-
ing ‘‘July 1, 2011’’. 
(C) IG REPORT.—Section 302(e) of the 
Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 (Public Law 108– 
173) is amended by striking ‘‘July 1, 2009’’ 
and inserting ‘‘July 1, 2011’’. 
(3) EVALUATION OF CERTAIN CODE.—The Sec-
retary of Health and Human Services shall evaluate 
the existing Healthcare Common Procedure Coding 
System (HCPCS) code for negative pressure wound 
therapy to ensure accurate reporting and billing for 
items and services under such code. In carrying out 
such evaluation, the Secretary shall use the existing 
process for the consideration of coding changes and 
consider all relevant studies and information fur-
nished pursuant to such process. 
(d) OTHER PROVISIONS.— 
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‘‘(ii) to which such programs would 
not apply, as specified by the Secretary, if 
furnished by a physician to the physician’s 
own patients as part of the physician’s 
professional service.’’. 
(2) CORRECTION IN FACE-TO-FACE EXAMINA-
TION REQUIREMENT.—Section 1834(a)(1)(E)(ii) of 
such Act (42 U.S.C. 1395m(a)(1)(E)(ii)) is amended 
by striking ‘‘1861(r)(1)’’ and inserting ‘‘1861(r)’’. 
(3) SPECIAL RULE IN CASE OF NATIONAL MAIL- 
ORDER
COMPETITION
FOR
DIABETIC
TESTING 
STRIPS.—Section 1847(b) of such Act (42 U.S.C. 
1395w–3(b)) is amended— 
(A) by redesignating paragraph (10) as 
paragraph (11); and 
(B) by inserting after paragraph (9) the 
following new paragraph: 
‘‘(10) SPECIAL RULE IN CASE OF COMPETITION 
FOR DIABETIC TESTING STRIPS.— 
‘‘(A) IN GENERAL.—With respect to the 
competitive acquisition program for diabetic 
testing strips conducted after the first round of 
the competitive acquisition programs, if an enti-
ty does not demonstrate to the Secretary that 
its bid covers types of diabetic testing strip 
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products that, in the aggregate and taking into 
account volume for the different products, cover 
50 percent (or such higher percentage as the 
Secretary may specify) of all such types of 
products, the Secretary shall reject such bid. 
The volume for such types of products may be 
determined in accordance with such data (which 
may be market based data) as the Secretary 
recognizes. 
‘‘(B) STUDY OF TYPES OF TESTING STRIP 
PRODUCTS.—Before 2011, the Inspector Gen-
eral of the Department of Health and Human 
Services shall conduct a study to determine the 
types of diabetic testing strip products by vol-
ume that could be used to make determinations 
pursuant to subparagraph (A) for the first com-
petition under the competitive acquisition pro-
gram described in such subparagraph and sub-
mit to the Secretary a report on the results of 
the study. The Inspector General shall also con-
duct such a study and submit such a report be-
fore the Secretary conducts a subsequent com-
petitive acquistion program described in sub-
paragraph (A).’’. 
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(4) OTHER CONFORMING AMENDMENTS.—Sec-
tion 1847(b)(11) of such Act, as redesignated by 
paragraph (3), is amended— 
(A) in subparagraph (C), by inserting ‘‘and 
the identification of areas under subsection 
(a)(1)(D)(iii)’’ after ‘‘(a)(1)(A)’’; 
(B) in subparagraph (D), by inserting 
‘‘and implementation of subsection (a)(1)(D)’’ 
after ‘‘(a)(1)(B)’’; 
(C) in subparagraph (E), by striking ‘‘or’’ 
at the end; 
(D) in subparagraph (F), by striking the 
period at the end and inserting ‘‘; or’’; and 
(E) by adding at the end the following new 
subparagraph: 
‘‘(G) the implementation of the special rule 
described in paragraph (10).’’. 
(5) FUNDING FOR IMPLEMENTATION.—In addi-
tion to funds otherwise available, for purposes of im-
plementing the provisions of, and amendments made 
by, this section, other than the amendment made by 
subsection 
(c)(1) 
and 
other 
than 
section 
1847(a)(1)(E) of the Social Security Act, the Sec-
retary of Health and Human Services shall provide 
for the transfer from the Federal Supplementary 
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Medical Insurance Trust Fund established under 
section 1841 of the Social Security Act (42 U.S.C. 
1395t) to the Centers for Medicare & Medicaid Serv-
ices Program Management Account of $20,000,000 
for fiscal year 2008, and $25,000,000 for each of 
fiscal years 2009 through 2012. Amounts trans-
ferred under this paragraph for a fiscal year shall be 
available until expended. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as of June 30, 2008. 
Æ 
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