I
105TH CONGRESS
1ST SESSION
H. R. 1457
To amend title XVIII of the Social Security Act to improve efforts to combat
fraud and abuse under the Medicare program for suppliers of durable
medical equipment, home health agencies, and other providers through
disclosure of information on ownership interests and requirement for
a surety bond.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mrs. THURMAN (for herself, Mr. STARK, Mr. SHAW, and Mr. DAVIS of Flor-
ida) introduced the following bill; which was referred to the Committee
on 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 improve
efforts to combat fraud and abuse under the Medicare
program for suppliers of durable medical equipment,
home health agencies, and other providers through disclo-
sure of information on ownership interests and require-
ment for a surety bond.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
ship or control interest in the supplier is a person
with such an ownership or control interest in the
disclosing entity; and
‘‘(B) a surety bond in a form specified by the
Secretary and in an amount that is not less than
$50,000.’’.
(b) SURETY
BOND
REQUIREMENT
FOR
HOME
HEALTH AGENCIES.—
(1) IN GENERAL.—Section 1861(o)(7) of such
Act (42 U.S.C. 1395x(o)(7)) is amended by insert-
ing ‘‘and including providing the Secretary on a con-
tinuing basis with a surety bond in a form specified
by the Secretary and in an amount that is not less
than $50,000’’ after ‘‘financial security of the pro-
gram’’.
(2) 
CONFORMING
AMENDMENTS.—Section
1861(v)(1)(H) 
of 
such 
Act 
(42 
U.S.C.
1395x(v)(1)(H)) is amended by striking ‘‘the finan-
cial security requirement’’ and inserting ‘‘the finan-
cial security and surety bond requirements’’ each
place it appears in clauses (i) and (ii).
(3) REFERENCE TO CURRENT DISCLOSURE RE-
QUIREMENT.—For provision of current law requiring
home health agencies to disclose information on
ownership and control interests, see section 1124 of
the Social Security Act.
(c) AUTHORIZING APPLICATION OF DISCLOSURE AND
SURETY BOND REQUIREMENTS TO AMBULANCE SERV-
ICES AND CERTAIN CLINICS.—Section 1834(a)(16) of the
Social Security Act (42 U.S.C. 1395m(a)(16)), as added
by subsection (a), is amended by adding at the end the
following: ‘‘The Secretary, in the Secretary’s discretion,
may impose the requirements of the previous sentence
with respect to some or all classes of suppliers of ambu-
lance services described in section 1861(s)(7) and clinics
that furnish medical and other health services (other than
physicians’ services) under this part.’’.
(d) EFFECTIVE DATES.—(1) The amendment made
by subsection (a) shall apply to suppliers of durable medi-
cal equipment with respect to such equipment furnished
on or after January 1, 1998.
(2) The amendments made by subsection (b) shall
apply to home health agencies with respect to services fur-
nished on or after such date. The Secretary of Health and
Human Services shall modify participation agreements
under section 1866(a)(1) of the Social Security Act with
respect to home health agencies to provide for implementa-
tion of such amendments on a timely basis.
(3) The amendment made by subsection (c) shall take
effect on the date of the enactment of this Act and may
be applied with respect to items and services furnished on
or after the date specified in paragraph (1).
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