I 
112TH CONGRESS 
1ST SESSION 
H. R. 173 
To amend titles XI and XVIII of the Social Security Act to provide increased 
civil and criminal penalties for acts involving fraud and abuse under 
the Medicare Program and to increase the amount of the surety bond 
required for suppliers of durable medical equipment. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 5, 2011 
Mr. STEARNS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend titles XI and XVIII of the Social Security Act 
to provide increased civil and criminal penalties for acts 
involving fraud and abuse under the Medicare Program 
and to increase the amount of the surety bond required 
for suppliers of durable medical equipment. 
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 ‘‘Medicare Fraud Pre-
vention Act of 2011’’. 
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SEC. 2. INCREASED CIVIL MONEY PENALTIES AND CRIMI-
NAL FINES FOR MEDICARE FRAUD AND 
ABUSE. 
(a) INCREASED CIVIL MONEY PENALTIES.—Section 
1128A of the Social Security Act (42 U.S.C. 1320a–7a) 
is amended— 
(1) in subsection (a), in the flush matter fol-
lowing paragraph (10)— 
(A) by striking ‘‘$10,000’’ each place it 
appears and inserting ‘‘$20,000’’; 
(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 øBrack-
eted addition made to account for amendments 
made by PPPACA PL111–148. Please review to 
be sure that addition reflects policy intent.¿ 
(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’’. 
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(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 
(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 
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imposed for actions taken on or after the date of enact-
ment of this Act. 
SEC. 3. INCREASED SENTENCES FOR FELONIES INVOLVING 
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 
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’’. 
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(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. 4. INCREASED SURETY BOND REQUIREMENT FOR SUP-
PLIERS OF DME. 
(a) IN GENERAL.—Section 1834(a)(16)(B) of the So-
cial Security Act (42 U.S.C. 1395m(a)(16)(B)) is amend-
ed by striking ‘‘$50,000’’ and inserting ‘‘$500,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to the issuance (or renewal) of a 
provider number for a supplier of durable medical equip-
ment on or after the date of enactment of this Act. 
Æ 
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