A bill to amend title XVIII of the Social Security Act to provide for improved standards to prevent fraud and abuse in the purchasing and rental of durable medical equipment and supplies, and prosthetics and orthotics, and prosthetic devices under the medicare program, and for other purposes.
Quality in Medical Equipment and Supplies Act of 1991 - Amends title XVIII (Medicare) of the Social Security Act to require suppliers of items of durable medical equipment, prosthetics and orthotics, and prosthetic devices to submit claims for payment under Medicare part B (Supplementary Medical Insurance) only to the carrier having jurisdiction over the geographic area in which the patient resides.
Provides exceptions to this requirement if the patient to whom such an item is furnished resides within 60 miles of the border of the carrier jurisdiction or if the patient is temporarily residing in another carrier's jurisdiction. Gives the Secretary of Health and Human Services the authority to provide for further exceptions to ensure patient access or administrative efficiency.
Requires the Secretary to: (1) consolidate the number of carriers processing claims for such items to no more than five regional carriers; (2) develop and implement, in consultation with private sector groups, criteria providing for uniform coverage and utilization among all carriers for such items; (3) establish national uniform standards that suppliers of such items must meet in order to obtain and renew provider numbers; (4) establish requirements for disclosure by applicants for provider numbers; (5) require the renewal of provider numbers every three years; (6) develop a standard provider number application form; and (7) establish procedures to be used by carriers to verify supplier applications for provider numbers.
Modifies the current prohibition against suppliers of items of durable medical equipment distributing forms documenting medical necessity to make such prohibition applicable instead to suppliers of items included on the Secretary's list of potentially overused items.
Increases the monetary penalty for violation of such prohibition with respect to suppliers of items included on the Secretary's list of potentially overused items.
Requires a standardized form of medical necessity to be developed by the Secretary for suppliers of items of durable medical equipment. Requires the form to include a statement that knowing and willful misrepresentations on it by the supplier will result in imposition of monetary penalties.
Extends the prohibition against physicians referring patients to clinical labs in which the physician has certain financial interests to referrals of patients to suppliers of items of durable medical equipment.
Requires the Secretary to study and report to the Congress on whether payments made for items of durable medical equipment, prosthetics and orthotics, and prosthetic devices adequately reflect the services provided by the suppliers to ensure quality of care.
Requires the Comptroller General to study and make recommendations to the Congress on whether payments made for such items adequately reflect variations in the quality of equipment or supplies provided.
Introduced in Senate
Read twice and referred to the Committee on Finance.
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