203 
(B) by striking ‘‘$15,000’’ and inserting 
‘‘$30,000’’; and 
(C) by striking ‘‘$50,000’’ each place it ap-
pears and inserting ‘‘$100,000’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), in the flush matter 
following 
subparagraph 
(B), 
by 
striking 
‘‘$2,000’’ and inserting ‘‘$4,000’’; 
(B) in paragraph (2), by striking ‘‘$2,000’’ 
and inserting ‘‘$4,000’’; and 
(C) in paragraph (3)(A)(i), by striking 
‘‘$5,000’’ and inserting ‘‘$10,000’’. 
(b) INCREASED CRIMINAL FINES.—Section 1128B of 
the Social Security Act (42 U.S.C. 1320a–7b) is amend-
ed— 
(1) in subsection (a), in the flush matter fol-
lowing paragraph (6)— 
(A) by striking ‘‘$25,000’’ and inserting 
‘‘$100,000’’; and 
(B) by striking ‘‘$10,000’’ and inserting 
‘‘$20,000’’; 
(2) in subsection (b)— 
(A) in paragraph (1), in the flush matter 
following 
subparagraph 
(B), 
by 
striking 
‘‘$25,000’’ and inserting ‘‘$100,000’’; and 
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204 
(B) in paragraph (2), in the flush matter 
following 
subparagraph 
(B), 
by 
striking 
‘‘$25,000’’ and inserting ‘‘$100,000’’; 
(3) in subsection (c), by striking ‘‘$25,000’’ and 
inserting ‘‘$100,000’’; 
(4) in subsection (d), in the second flush matter 
following subparagraph (B), by striking ‘‘$25,000’’ 
and inserting ‘‘$100,000’’; and 
(5) in subsection (e), by striking ‘‘$2,000’’ and 
inserting ‘‘$4,000’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to civil money penalties and fines 
imposed for actions taken on or after the date of enact-
ment of this Act. 
SEC. 702. INCREASED SENTENCES FOR FELONIES INVOLV-
ING MEDICARE FRAUD AND ABUSE. 
(a) FALSE STATEMENTS AND REPRESENTATIONS.— 
Section 1128B(a) of the Social Security Act (42 U.S.C. 
1320a–7b(a)) is amended, in clause (i) of the flush matter 
following paragraph (6), by striking ‘‘not more than five 
years’’ and inserting ‘‘not more than 10 years’’. 
(b) ANTI-KICKBACK.—Section 1128B(b) of the So-
cial Security Act (42 U.S.C. 1320a–7b(b)) is amended— 
(1) in paragraph (1), in the flush matter fol-
lowing subparagraph (B), by striking ‘‘not more 
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205 
than five years’’ and inserting ‘‘not more than 10 
years’’; and 
(2) in paragraph (2), in the flush matter fol-
lowing subparagraph (B), by striking ‘‘not more 
than five years’’ and inserting ‘‘not more than 10 
years’’. 
(c) FALSE STATEMENT OR REPRESENTATION WITH 
RESPECT TO CONDITIONS OR OPERATIONS OF FACILI-
TIES.—Section 1128B(c) of the Social Security Act (42 
U.S.C. 1320a–7b(c)) is amended by striking ‘‘not more 
than five years’’ and inserting ‘‘not more than 10 years’’. 
(d) EXCESS CHARGES.—Section 1128B(d) of the So-
cial Security Act (42 U.S.C. 1320a–7b(d)) is amended, in 
the second flush matter following subparagraph (B), by 
striking ‘‘not more than five years’’ and inserting ‘‘not 
more than 10 years’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to criminal penalties imposed for 
actions taken on or after the date of enactment of this 
Act. 
SEC. 703. OTHER DME SUPPLIER ANTI-FRAUD AND ABUSE 
PROVISIONS. 
(a) MANDATORY PERIODIC SITE INSPECTIONS FOR 
DME SUPPLIERS.—The Secretary of Health and Human 
Services shall require, as a condition for participation of 
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206 
suppliers of durable medical equipment under part B of 
title XVIII of the Social Security Act— 
(1) a site inspection to be conducted for each 
such supplier that has not previously participated 
under such part within 6 months of the date of its 
initial participation under such part; and 
(2) a site inspection at least every 2 years to 
be conducted for each such supplier that has pre-
viously participated under such part. 
(b) POST-PAYMENT REVIEW.—The Secretary also 
shall provide conduct post-payment reviews of claims for 
items and services furnished under such part by durable 
medical equipment suppliers that begin participation 
under such part after the date of the enactment of this 
Act. Such reviews shall be conducted not less often than 
after the first 6, 12, and 18 months of such participation. 
(c) AVAILABILITY OF FUNDS.—Funds in the Health 
Care Fraud and Abuse Control Account under section 
1817(k) of the Social Security Act (42 U.S.C. 1395i(k)) 
shall be available for the conduct of site inspections and 
post-payment review required under this section. 
(d) TREATMENT
OF SKILLED NURSING FACILI-
TIES.—In this section, a skilled nursing facility shall not 
be treated as a supplier of durable medical equipment with 
respect to any individual who is a resident of such facility. 
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207 
SEC. 704. RETENTION OF CERTAIN FRAUD AND ABUSE PRO-
VISIONS. 
Section 101 shall not apply to the provisions (includ-
ing amendments made by) title VI of Public Law 111– 
148, other than subtitles D, H, and I of such title, and 
provisions of Public Law 111–152 insofar as they relate 
to such provisions. 
SEC. 705. ENSURING TIMELY ENFORCEMENT OF MEDICARE 
SECONDARY PAYER REQUIREMENTS IN LI-
ABILITY CASES. 
The Secretary of Health and Human Services, acting 
through the Administrator of the Centers for Medicare & 
Medicaid Services, shall affirmatively establish, for initial 
implementation not later than 90 days after the date of 
the enactment of this Act, a plan to require applicable 
plans (as defined in subparagraph (F) of section 
1862(b)(8) of the Social Security Act (42 U.S.C. 
1395y(b)(8)), as added by section 111(a) of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 
110–173)), to meet the determination and submission re-
quirements under subparagraph (A) of such section 
1862(b)(8). 
Æ 
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