Medicare DMEPOS Competitive Bidding Improvement Act of 2014 - Amends title XVIII (Medicare) of the Social Security Act with respect to the Medicare durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive acquisition program.
Prohibits the Secretary of Health and Human Services (HHS) from accepting a bid from an entity for an area unless it: (1) meets state licensure requirements for the area for all items in the submitted bid for a product category, and (2) has obtained a bid surety bond of between $50,000 and $100,000 for each such area.
Prescribes requirements for the treatment of losing bidders and successful bidders that do not accept a contract.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5809 Introduced in House (IH)]
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
following bill; which was referred to the Committee on Energy and
Commerce, and in addition to the Committee on Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives 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''.
SEC. 2. REQUIRING STATE LICENSURE AND BID SURETY BONDS FOR ENTITIES
SUBMITTING BIDS UNDER THE MEDICARE DMEPOS COMPETITIVE
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 respect to rounds of
competitions beginning under this subsection on or
after the date of enactment of this subparagraph, the
Secretary may not accept a bid from an entity for an
area unless, 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
provided the Secretary with proof of having
obtained) a bid surety bond (in this paragraph
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.
``(H) Treatment of bid bonds submitted.--
``(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 category, 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
submitted shall be forfeited by the
bidding entity and the Secretary shall
collect on it; or
``(II) is above such median
composite bid rate and the entity
chooses not to accept a contract for
the product category, the bid bond
submitted shall be returned within 90
days of the date of notice of
nonacceptance.
``(ii) For losing bidders.--If a bidding
entity submits a bid that is not accepted for
an area, the bid bond submitted for the entity
for such area shall be returned within 90 days
of the date of notice of nonacceptance.''.
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Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
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