notifies the person that the Secretary no longer
intends to initiate such a proceeding against the
defendants.
‘‘(C) After the expiration of the 2-year period
that begins on the date the Secretary notifies the
person that the Secretary intends to initiate a pro-
ceeding to impose a civil monetary penalty under
this section against the defendants, the Secretary
has not made a good faith effort to initiate such a
proceeding against the defendants.
‘‘(4) If a person is awarded any amounts in an action
brought under this subsection that are in excess of the
damages suffered by the person as a result of the defend-
ant’s activities, 10 percent of such amounts shall be with-
held from the person for payment into the Anti-Fraud and
Abuse Trust Fund established under section 101(b) of the
National Health Care Anti-Fraud and Abuse Act of 1993.
‘‘(5) No action may be brought under this subsection
more than 6 years after the date of the activity with re-
spect to which the action is brought.’’.
SEC. 205. ACTIONS SUBJECT TO CRIMINAL PENALTIES.
(a) ANTI-KICKBACK SANCTIONS.—
(1) PERMITTING SECRETARY TO IMPOSE CIVIL
MONETARY PENALTY.—Section 1128A(a) of the So-
cial Security Act (42 U.S.C. 1320a–7a(a)), as
amended by subsections (a) and (b) of section 204,
is further amended—
(A) by striking ‘‘or’’ at the end of para-
graph (5);
(B) by striking the semicolon at the end of
paragraph (6) and inserting ‘‘; or’’; and
(C) by inserting after paragraph (6) the
following new paragraph:
‘‘(7) carries out any activity in violation of
paragraph (1) or (2) of section 1128B(b);’’.
(2) RESTRICTION ON APPLICATION OF EXCEP-
TION FOR AMOUNTS PAID TO EMPLOYEES.—Section
1128B(b)(3)(B) of such Act (42 U.S.C. 1320a–
7b(b)(3)(B)) is amended by striking ‘‘services;’’ and
inserting the following: ‘‘services, but only if such
amount is not contingent upon the employee refer-
ring individuals to the employer for the furnishing
(or arranging for the furnishing) of such items or
services and is not determined in a manner that
takes into account (directly or indirectly) the volume
or value of any referrals by the employee to the em-
ployer for the furnishing (or arranging for the
furnishing) of such items or services;’’.
(b) AUTHORITY TO ENJOIN SANCTIONED INDIVID-
UAL OR ENTITY FROM DISPOSING OF ASSETS REQUIRED
TO PAY CRIMINAL PENALTY.—Section 1128B of such Act
(42 U.S.C. 1320a–7b), as amended by paragraphs (2) and
(3) of section 102(b), is further amended by adding at
the end the following new subsection:
‘‘(h) The provisions of section 1128A(k) shall apply
to any person subject to a fine under this section in the
same manner as such provisions apply to a person subject
to a civil monetary penalty under such section.’’.
SEC. 206. SANCTIONS AGAINST PRACTITIONERS AND PER-
SONS FOR FAILURE TO FOLLOW CORRECTIVE
ACTION PLAN OF PEER REVIEW ORGANIZA-
TION.
(a) MINIMUM PERIOD OF EXCLUSION FOR PRACTI-
TIONERS AND PERSONS FAILING TO MEET CORRECTIVE
PLAN OF PEER REVIEW ORGANIZATION.—
(1) IN GENERAL.—The second sentence of sec-
tion 1156(b)(1) of the Social Security Act (42
U.S.C. 1320c–5(b)(1)) is amended by striking ‘‘may
prescribe)’’ and inserting ‘‘may prescribe, except
that such period may not be less than 1 year)’’.
(2) 
CONFORMING
AMENDMENT.—Section
1156(b)(2) of such Act (42 U.S.C. 1320c–5(b)(2)) is
amended by striking ‘‘shall remain’’ and inserting
‘‘shall (subject to the minimum period specified in
the second sentence of paragraph (1))’’.
(b) REPEAL OF ‘‘UNWILLING OR UNABLE’’ CONDI-
TION FOR IMPOSITION OF SANCTION.—Section 1156(b)(1)
of such Act (42 U.S.C. 1320c–5(b)(1)) is amended—
(1) in the second sentence, by striking ‘‘and de-
termines’’ and all that follows through ‘‘such obliga-
tions,’’; and
(2) by striking the third sentence.
(c) AMOUNT OF CIVIL MONEY PENALTY.—Section
1156(b)(3) of such Act (42 U.S.C. 1320c–5(b)(3)) is
amended by striking ‘‘the actual or estimated cost’’ and
inserting the following: ‘‘$10,000 for each instance’’.
SEC. 207. RESTRICTIONS ON CERTAIN DURABLE MEDICAL
EQUIPMENT MARKETING AND SALES ACTIVI-
TIES.
(a) PROHIBITING UNSOLICITED TELEPHONE CON-
TACTS FROM SUPPLIERS OF DURABLE MEDICAL EQUIP-
MENT TO MEDICARE BENEFICIARIES.—
(1) IN GENERAL.—Section 1834(a) of the So-
cial Security Act (42 U.S.C. 1395m(a)) is amended
by adding at the end the following new paragraph:
‘‘(17) PROHIBITION
AGAINST
UNSOLICITED
TELEPHONE CONTACTS BY SUPPLIERS.—
‘‘(A) IN GENERAL.—A supplier of a cov-
ered item under this subsection may not contact
an individual enrolled under this part by tele-
phone regarding the furnishing of a covered
item to the individual (other than a covered
item the supplier has already furnished to the
individual) unless—
‘‘(i) the individual gives permission to
the supplier to make contact by telephone
for such purpose; or
‘‘(ii) the supplier has furnished a cov-
ered item under this subsection to the indi-
vidual during the 15-month period preced-
ing the date on which the supplier contacts
the individual for such purpose.
‘‘(B) PROHIBITING PAYMENT FOR ITEMS
FURNISHED
SUBSEQUENT
TO
UNSOLICITED
CONTACTS.—If a supplier knowingly contacts
an individual in violation of subparagraph (A),
no payment may be made under this part for
any item subsequently furnished to the individ-
ual by the supplier.
‘‘(C) EXCLUSION
FROM
PROGRAM
FOR
SUPPLIERS ENGAGING IN PATTERN OF UNSO-
LICITED
CONTACTS.—If a supplier knowingly
contacts individuals in violation of subpara-
graph (A) to such an extent that the supplier’s
conduct establishes a pattern of contacts in vio-
lation of such subparagraph, the Secretary shall
exclude the supplier from participation in the
programs under this Act, in accordance with
the procedures set forth in subsections (c), (f),
and (g) of section 1128.’’.
(2) REQUIRING
REFUND
OF
AMOUNTS
COL-
LECTED FOR DISALLOWED ITEMS.—Section 1834(a)
of such Act (42 U.S.C. 1395m(a)), as amended by
paragraph (1), is amended by adding at the end the
following new paragraph:
‘‘(18) REFUND OF AMOUNTS COLLECTED FOR
CERTAIN DISALLOWED ITEMS.—
‘‘(A) IN GENERAL.—If a nonparticipating
supplier furnishes to an individual enrolled
under this part a covered item for which no
payment may be made under this part by rea-
son of paragraph (17)(B), the supplier shall re-
fund on a timely basis to the patient (and shall
be liable to the patient for) any amounts col-
lected from the patient for the item, unless—
‘‘(i) the supplier establishes that the
supplier did not know and could not rea-
sonably have been expected to know that
payment may not be made for the item by
reason of paragraph (17)(B), or
‘‘(ii) before the item was furnished,
the patient was informed that payment
under this part may not be made for that
item and the patient has agreed to pay for
that item.
‘‘(B) SANCTIONS.—If a supplier knowingly
and willfully fails to make refunds in violation
of subparagraph (A), the Secretary may apply
sanctions against the supplier in accordance
with section 1842(j)(2).
‘‘(C) NOTICE.—Each carrier with a con-
tract in effect under this part with respect to
suppliers of covered items shall send any notice
of denial of payment for covered items by rea-
son of paragraph (17)(B) and for which pay-
ment is not requested on an assignment-related
basis to the supplier and the patient involved.
‘‘(D) TIMELY BASIS DEFINED.—A refund
under subparagraph (A) is considered to be on
a timely basis only if—
‘‘(i) in the case of a supplier who does
not request reconsideration or seek appeal
on a timely basis, the refund is made with-
in 30 days after the date the supplier re-