I 
113TH CONGRESS 
2D SESSION 
H. R. 5809 
To amend title XVIII of the Social Security Act to require State licensure 
and bid surety bonds for entities submitting bids under the Medicare 
durable 
medical 
equipment, 
prosthetics, 
orthotics, 
and 
supplies 
(DMEPOS) competitive acquisition program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 8, 2014 
Mr. TIBERI (for himself and Mr. LARSON of Connecticut) 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 require 
State licensure and bid surety bonds for entities submit-
ting bids under the Medicare durable medical equipment, 
prosthetics, orthotics, and supplies (DMEPOS) competi-
tive acquisition program, and for other purposes. 
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 DMEPOS 
Competitive Bidding Improvement Act of 2014’’. 
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SEC. 2. REQUIRING STATE LICENSURE AND BID SURETY 
BONDS 
FOR 
ENTITIES 
SUBMITTING 
BIDS 
UNDER THE MEDICARE DMEPOS COMPETI-
TIVE ACQUISITION PROGRAM. 
Section 1847(a)(1) of the Social Security Act (42 
U.S.C. 1395w–3(a)(1)) is amended by adding at the end 
the following new subparagraphs: 
‘‘(G) REQUIRING STATE LICENSURE AND 
BID BONDS FOR BIDDING ENTITIES.—With re-
spect to rounds of competitions beginning under 
this subsection on or after the date of enact-
ment of this subparagraph, the Secretary may 
not accept a bid from an entity for an area un-
less, as of the deadline for bid submission— 
‘‘(i) the entity meets applicable State 
licensure requirements for such area for all 
items in such bid for a product category; 
and 
‘‘(ii) the entity has obtained (and pro-
vided the Secretary with proof of having 
obtained) a bid surety bond (in this para-
graph referred to as a ‘bid bond’) in a 
form specified by the Secretary consistent 
with subparagraph (H) and in an amount 
that is not less than $50,000 and not more 
than $100,000 for each such area. 
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‘‘(H) TREATMENT
OF
BID
BONDS
SUB-
MITTED.— 
‘‘(i) FOR SUCCESSFUL BIDDERS THAT 
DO NOT ACCEPT THE CONTRACT.—In the 
case of a bidding entity that is offered a 
contract for an area for a product cat-
egory, if the entity’s composite bid— 
‘‘(I) is at or below the product 
category’s median composite bid rate 
for the area and the entity does not 
accept the contract offered for the 
product and area, the bid bond sub-
mitted shall be forfeited by the bid-
ding entity and the Secretary shall 
collect on it; or 
‘‘(II) is above such median com-
posite bid rate and the entity chooses 
not to accept a contract for the prod-
uct category, the bid bond submitted 
shall be returned within 90 days of 
the date of notice of nonacceptance. 
‘‘(ii) FOR LOSING BIDDERS.—If a bid-
ding entity submits a bid that is not ac-
cepted for an area, the bid bond submitted 
for the entity for such area shall be re-
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turned within 90 days of the date of notice 
of nonacceptance.’’. 
Æ 
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