[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 284 Referred in Senate (RFS)]
114th CONGRESS
1st Session
H. R. 284
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 17, 2015
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
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 2015''.
SEC. 2. REQUIRING BID SURETY BONDS AND STATE LICENSURE FOR ENTITIES
SUBMITTING BIDS UNDER THE MEDICARE DMEPOS COMPETITIVE
ACQUISITION PROGRAM.
(a) Bid Surety Bonds.--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 bid bonds for bidding entities.--
With respect to rounds of competitions beginning under
this subsection for contracts 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 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 competitive
acquisition area in which the entity submits the bid.
``(H) Treatment of bid bonds submitted.--
``(i) For bidders that submit bids at or
below the median and are offered but do not
accept the contract.--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 included
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.
``(ii) Treatment of other bidders.--In the
case of a bidding entity for any product
category for a competitive acquisition 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 submitted 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 amendment 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
Act (42 U.S.C. 1395w-3) before the date of the enactment 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 participation 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 General shall submit to Congress a
report on the study conducted under paragraph (1). Such report
shall include recommendations for changes in such requirement
in order to ensure robust participation by
legitimate small suppliers in the Medicare DMEPOS competition
acquisition program.
Passed the House of Representatives March 16, 2015.
Attest:
KAREN L. HAAS,
Clerk.