HR 284 RFS 
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 2015’’. 
SEC. 2. REQUIRING BID SURETY BONDS AND STATE LICEN-
SURE 
FOR 
ENTITIES 
SUBMITTING 
BIDS 
UNDER THE MEDICARE DMEPOS COMPETI-
TIVE ACQUISITION PROGRAM. 
(a) BID SURETY BONDS.—Section 1847(a)(1) of the 
Social Security Act (42 U.S.C. 1395w–3(a)(1)) is amend-
ed by adding at the end the following new subparagraphs: 
‘‘(G) REQUIRING BID BONDS FOR BIDDING 
ENTITIES.—With respect to rounds of competi-
tions beginning under this subsection for con-
tracts beginning not earlier than January 1, 
2017, and not later than January 1, 2019, an 
entity may not submit a bid for a competitive 
acquisition area unless, as of the deadline for 
bid submission, the entity has obtained (and 
provided the Secretary with proof of having ob-
tained) a bid surety bond (in this paragraph re-
ferred 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 
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HR 284 RFS 
and not more than $100,000 for each competi-
tive acquisition area in which the entity submits 
the bid. 
‘‘(H) TREATMENT
OF
BID
BONDS
SUB-
MITTED.— 
‘‘(i) FOR BIDDERS THAT SUBMIT BIDS 
AT OR BELOW THE MEDIAN AND ARE OF-
FERED
BUT
DO
NOT
ACCEPT
THE
CON-
TRACT.—In the case of a bidding entity 
that is offered a contract for any product 
category for a competitive acquisition area, 
if— 
‘‘(I) the entity’s composite bid 
for such product category and area 
was at or below the median composite 
bid rate for all bidding entities in-
cluded in the calculation of the single 
payment amounts for such product 
category and area; and 
‘‘(II) the entity does not accept 
the contract offered for such product 
category and area, 
the bid bond submitted by such entity for 
such area shall be forfeited by the entity 
and the Secretary shall collect on it. 
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‘‘(ii) TREATMENT
OF
OTHER
BID-
DERS.—In the case of a bidding entity for 
any product category for a competitive ac-
quisition area, if the entity does not meet 
the bid forfeiture conditions in subclauses 
(I) and (II) of clause (i) for any product 
category for such area, the bid bond sub-
mitted by such entity for such area shall 
be returned within 90 days of the public 
announcement of the contract suppliers for 
such area.’’. 
(b) STATE LICENSURE.— 
(1) IN GENERAL.—Section 1847(b)(2)(A) of the 
Social Security Act (42 U.S.C. 1395w–3(b)(2)(A)) is 
amended by adding at the end the following new 
clause: 
‘‘(v) The entity meets applicable State 
licensure requirements.’’. 
(2) CONSTRUCTION.—Nothing in the amend-
ment made by paragraph (1) shall be construed as 
affecting the authority of the Secretary of Health 
and Human Services to require State licensure of an 
entity under the Medicare competitive acquisition 
program under section 1847 of the Social Security 
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Act (42 U.S.C. 1395w–3) before the date of the en-
actment of this Act. 
(c) GAO REPORT ON BID BOND IMPACT ON SMALL 
SUPPLIERS.— 
(1) STUDY.—The Comptroller General of the 
United States shall conduct a study that evaluates 
the effect of the bid surety bond requirement under 
the amendment made by subsection (a) on the par-
ticipation of small suppliers in the Medicare 
DMEPOS competitive acquisition program under 
section 1847 of the Social Security Act (42 U.S.C. 
1395w–3). 
(2) REPORT.—Not later than 6 months after 
the date contracts are first awarded subject to such 
bid surety bond requirement, the Comptroller Gen-
eral shall submit to Congress a report on the study 
conducted under paragraph (1). Such report shall 
include recommendations for changes in such re-
quirement in order to ensure robust participation by 
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legitimate small suppliers in the Medicare DMEPOS 
competition acquisition program. 
Passed the House of Representatives March 16, 
2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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