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H.R. 4920 (113th): Medicare DMEPOS Competitive Bidding Improvement Act of 2014

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The text of the bill below is as of Jun 19, 2014 (Introduced). The bill was not enacted into law.

I

113th CONGRESS

2d Session

H. R. 4920

IN THE HOUSE OF REPRESENTATIVES

June 19, 2014

(for himself, Mr. Larson of Connecticut, Mrs. Black, Mr. Visclosky, Mr. Johnson of Ohio, and Mr. Joyce) 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 performance guarantees for entities submitting bids under the Medicare durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive acquisition program, and for other purposes.

1.

Short title

This Act may be cited as the Medicare DMEPOS Competitive Bidding Improvement Act of 2014 .

2.

Requiring State licensure and performance guarantees of bidding entities under the Medicare DMEPOS competitive acquisition program

(a)

In general

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 performance guarantees 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 and performance surety bond (in this paragraph referred to as a bid and performance bond) in a form specified by the Secretary consistent with subparagraph (H) and in an amount that is not less than $50,000 for each such area.

(H)

Treatment of bid and performance bonds submitted

(i)

For successful bidders

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 and performance 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 and performance bond submitted shall be returned within 90 days of the date of notice of nonacceptance.

(ii)

Conversion into performance guarantee upon contracting

If a bidding entity is offered and accepts the contract, the bid and performance bond submitted shall be retained as a performance guarantee under the contract and—

(I)

shall be returned to the entity within 90 days of the date of completion of the contract; or

(II)

shall be collected on by the Secretary if the contract is terminated before the expiration of the contract.

(iii)

Return of bond for losing bidders

If a bidding entity submits a bid that is not accepted for an area, the bid and performance 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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