[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2325 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2325

 To amend titles XVIII and XIX of the Social Security Act with respect 
to changing the requirements for surety bonds of home health agencies, 
durable medical equipment suppliers, and others under the Medicare and 
                           Medicaid Programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 1999

Mr. Stark (for himself and Mrs. Thurman) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
     to the Committee on Commerce, 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 titles XVIII and XIX of the Social Security Act with respect 
to changing the requirements for surety bonds of home health agencies, 
durable medical equipment suppliers, and others under the Medicare and 
                           Medicaid Programs.

    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 and Medicaid Surety Bond 
Reform Act of 1999''.

SEC. 2. CHANGES IN MEDICARE SURETY BOND REQUIREMENTS.

    (a) Home Health Agencies.--Section 1861(o)(7) of the Social 
Security Act (42 U.S.C. 1395x(o)(7)) is amended--
            (1) by striking ``on a continuing basis'' and inserting 
        ``for the first 2 years of the agency's or organization's 
        participation in the program under this title or title XIX''; 
        and
            (2) by striking ``in an amount that is not less than 
        $50,000'' and inserting ``in the amount of $50,000''.
    (b) Durable Medical Equipment Suppliers.--Section 1834(a)(16)(B) of 
the Social Security Act (42 U.S.C. 1395m(a)(16)(B)) is amended--
            (1) by striking ``in an amount that is not less than 
        $50,000'' and inserting ``in the amount of $50,000 for the 
        first 2 years of the supplier's participation in the program 
        under this title or under title XIX, except that the 
        requirement for a surety bond shall not apply to an 
        angioplastologist and an entity that supplies only orthotics 
        and prosthetics''.
    (c) Application to Other Providers.--
            (1) Rehabilitation clinics.--Section 1861(p)(4)(A)(v) of 
        such Act (42 U.S.C. 1395x(p)(4)(A)(v)) is amended--
                    (A) by striking ``on a continuing basis'' and 
                inserting ``for the first 2 years of the agency's 
                participation in the program under this title or title 
                XIX''; and
                    (B) by striking ``in an amount that is not less 
                than $50,000'' and inserting ``in the amount of 
                $50,000''.
            (2) Comprehensive outpatient rehabilitation facilities.--
        Section 1861(cc)(2)(I) of such Act (42 U.S.C. 1395x(cc)(2)(I)) 
        is amended--
                    (A) by striking ``on a continuing basis'' and 
                inserting ``for the first 2 years of the facility's 
                participation in the program under this title or title 
                XIX''; and
                    (B) by striking ``in an amount that is not less 
                than $50,000'' and inserting ``in the amount of 
                $50,000''.
            (3) Optional coverage for providers of services.--Section 
        1866(a)(1) of such Act (42 U.S.C. 1395cc(a)(1)) is amended--
                    (A) in subparagraph (R), by adding a semicolon at 
                the end;
                    (B) by striking the period at the end of 
                subparagraph (S) and inserting ``; and'';
                    (C) by inserting after subparagraph (S) the 
                following new subparagraph:
            ``(T) in the case of hospitals, skilled nursing facilities, 
        and hospice programs and to the extent provided in regulations, 
        to provide the Secretary for the first 2 years of the 
        provider's participation in the program under this title or 
        title XIX with a surety bond in a form specified by the 
        Secretary and in the amount of $50,000.''; and
                    (D) by adding at the end the following new 
                sentence: ``The Secretary may waive the requirement of 
                a surety bond under subparagraph (T) in the case of a 
                provider that provides a comparable surety bond under 
                State law.''.
    (d) Coordination of Surety Bonds.--Part A of title XI of the Social 
Security Act is amended by adding at the end the following new section:

     ``coordination of medicare and medicaid surety bond provisions

    ``Sec. 1148. In the case of a home health agency, durable medical 
equipment supplier, or other entity that is subject to a surety bond 
under title XVIII and title XIX, the surety bond provided to satisfy 
the requirement under one such title shall satisfy the requirement 
under the other such title so long as the bond applies to guarantee 
return of overpayments under both such titles.''.

SEC. 3. CHANGES IN MEDICAID SURETY BOND REQUIREMENTS.

    (a) Home Health Agencies.--Section 1903(i)(18) of the Social 
Security Act (42 U.S.C. 1396b(i)(18)) is amended by striking ``in a 
form specified by the Secretary under paragraph (7) of section 1861(o) 
and in an amount that is not less than $50,000'' and inserting ``in a 
form and amount described in paragraph (7) of section 1861(o)''.
    (b) Durable Medical Equipment Suppliers.--Section 1902(a)(65)(B) of 
such Act (42 U.S.C. 1396a(a)(65)(B)) is amended by striking ``a surety 
bond in a form specified by the Secretary under section 1834(a)(16)(B) 
and in an amount that is not less than $50,000 or'' and inserting 
``except as exempted under section 1834(a)(16)(B), a surety bond in a 
form and amount described in such section''.
    (c) Other Providers.--Section 1903(i)(18) of such Act (42 U.S.C. 
1396b(i)(18)) is amended--
            (1) by inserting ``(A)'' after ``(18)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or (B) with respect to any amount expended for 
        items or services provided by a provider of services described 
        in subparagraph (T) of section 1866(a)(1) unless the provider 
        provides the State agency a surety bond in a form and amount 
        specified by the Secretary under such section or such 
        comparable surety bond as the Secretary may permit under the 
        last sentence of such section''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act take effect on the date of the 
enactment of this Act.
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