I 
111TH CONGRESS 
1ST SESSION H. R. 1970 
To amend title XVIII of the Social Security Act to exempt unsanctioned 
State-licensed retail pharmacies from the surety bond requirement under 
the Medicare Program for suppliers of durable medical equipment, pros-
thetics, orthotics, and supplies (DMEPOS). 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2009 
Mr. SPACE (for himself, Mrs. EMERSON, and Mr. BERRY) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on Ways and Means, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend title XVIII of the Social Security Act to exempt 
unsanctioned State-licensed retail pharmacies from the 
surety bond requirement under the Medicare Program 
for suppliers of durable medical equipment, prosthetics, 
orthotics, and supplies (DMEPOS). 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preserve Patient Ac-
cess to Reputable DMEPOS Providers Act of 2009’’. 
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SEC. 2. APPLICATION OF DMEPOS SURETY BOND REQUIRE-
MENT TO CERTAIN RETAIL PHARMACIES. 
(a) IN GENERAL.—Section 1834(a)(16) of the Social 
Security Act (42 U.S.C. 1395m(a)(16)) is amended by 
adding at the end the following new sentences: ‘‘The re-
quirement of a bond under subparagraph (B) shall only 
apply to a State-licensed retail pharmacy or a mail-order 
pharmacy if there has been a final adverse action (as de-
fined in section 424.57(a) of title 42, Code of Federal Reg-
ulations, as in effect on the date of the enactment of this 
Act) that is not subject to administrative or judicial appeal 
taken against such respective pharmacy during the 10- 
year period preceding the issuance (or renewal) under this 
part of the provider number involved. In the case of a 
chain of such pharmacies (or other grouping of more than 
one such pharmacy), the previous sentence shall be applied 
separately to each such pharmacy within such chain (or 
grouping). For purposes of this paragraph, the term 
‘State-licensed retail pharmacy’ means any State-licensed 
independent, chain, supermarket, or mass merchandiser 
pharmacy and the term ‘mail-order pharmacy’ means a 
pharmacy that is State-licensed and that conducts its 
pharmaceutical business primarily through mail services.’’. 
(b) TREATMENT OF CURRENT DMEPOS SURETY 
BOND EXEMPTIONS.—Nothing in the amendment made 
by subsection (a) shall affect the application of any exemp-
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tion specified in section 424.57(d)(15) of title 42, Code 
of Federal Regulations (as in effect as of the date of the 
enactment of this Act). 
(c) EFFECTIVE DATE; RELEASE FROM OBLIGATION 
WITH RESPECT TO CERTAIN SURETY BONDS.— 
(1) EFFECTIVE DATE.—The amendment made 
by this section shall take effect as of the date of the 
enactment of this Act and shall apply to provider 
numbers issued or renewed before, on, or after such 
date. 
(2) RELEASE FROM OBLIGATION WITH RESPECT 
TO
CERTAIN
SURETY
BONDS.—In the case of a 
State-licensed retail pharmacy or mail-order phar-
macy (as such terms are defined in the last sentence 
of section 1834(a)(16) of the Social Security Act, as 
added by subsection (a)) to which the surety bond 
requirement under subparagraph (B) of such section 
does not apply under the amendment made by sub-
section (a) but for which a surety bond was provided 
prior to the date of the enactment of this Act, the 
respective pharmacy is released from any obligation 
under title XVIII of the Social Security Act with re-
spect to such bond and, upon request, the Secretary 
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of Health and Human Services shall provide such 
pharmacy with a document indicating such release. 
Æ 
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