II 111th CONGRESS 1st Session S. 956 IN THE SENATE OF THE UNITED STATES May 1, 2009 Mr. Tester (for himself and Mr. Roberts) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XVIII of the Social Security Act to exempt unsanctioned State-licensed retail pharmacies from the surety bond requirement under the Medicare Program for suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).

1.

Short title

This Act may be cited as the Preserve Patient Access to Reputable DMEPOS Providers Act of 2009.

2.

Application of DMEPOS surety bond requirement to certain retail pharmacies

(a)

In general

Section 1834(a)(16) of the Social Security Act (42 U.S.C. 1395m(a)(16)) is amended by adding at the end the following new sentences: The requirement of a bond under subparagraph (B) shall only apply to a State-licensed retail pharmacy or a mail-order pharmacy if there has been a final adverse action (as defined in section 424.57(a) of title 42, Code of Federal Regulations, as in effect on the date of the enactment of this Act) that is not subject to administrative or judicial appeal taken against such respective pharmacy during the 10-year period preceding the issuance (or renewal) under this part of the provider number involved. In the case of a chain of such pharmacies (or other grouping of more than one such pharmacy), the previous sentence shall be applied separately to each such pharmacy within such chain (or grouping). For purposes of this paragraph, the term State-licensed retail pharmacy means any State-licensed independent, chain, supermarket, or mass merchandiser pharmacy and the term mail-order pharmacy means a pharmacy that is State-licensed and that conducts its pharmaceutical business primarily through mail services.. (b)

Treatment of current DMEPOS surety bond exemptions

Nothing in the amendment made by subsection (a) shall affect the application of any exemption specified in section 424.57(d)(15) of title 42, Code of Federal Regulations (as in effect as of the date of the enactment of this Act). (c)

Effective date; release from obligation with respect to certain surety bonds

(1)

Effective date

The amendment made by this section shall take effect as of the date of the enactment of this Act and shall apply to provider numbers issued or renewed before, on, or after such date. (2)

Release from obligation with respect to certain surety bonds

In the case of a State-licensed retail pharmacy or mail-order pharmacy (as such terms are defined in the last sentence of section 1834(a)(16) of the Social Security Act, as added by subsection (a)) to which the surety bond requirement under subparagraph (B) of such section does not apply under the amendment made by subsection (a) but for which a surety bond was provided prior to the date of the enactment of this Act, the respective pharmacy is released from any obligation under title XVIII of the Social Security Act with respect to such bond and, upon request, the Secretary of Health and Human Services shall provide such pharmacy with a document indicating such release.