[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 173 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 173

  To amend titles XI and XVIII of the Social Security Act to provide 
  increased civil and criminal penalties for acts involving fraud and 
  abuse under the Medicare Program and to increase the amount of the 
    surety bond required for suppliers of durable medical equipment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 2011

 Mr. Stearns introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and 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 XI and XVIII of the Social Security Act to provide 
  increased civil and criminal penalties for acts involving fraud and 
  abuse under the Medicare Program and to increase the amount of the 
    surety bond required for suppliers of durable medical equipment.

    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 Fraud Prevention Act of 
2011''.

SEC. 2. INCREASED CIVIL MONEY PENALTIES AND CRIMINAL FINES FOR MEDICARE 
              FRAUD AND ABUSE.

    (a) Increased Civil Money Penalties.--Section 1128A of the Social 
Security Act (42 U.S.C. 1320a-7a) is amended--
            (1) in subsection (a), in the flush matter following 
        paragraph (10)--
                    (A) by striking ``$10,000'' each place it appears 
                and inserting ``$20,000'';
                    (B) by striking ``$15,000'' and inserting 
                ``$30,000''; and
                    (C) by striking ``$50,000'' each place it appears 
                and inserting ``$100,000''; and [Bracketed addition 
                made to account for amendments made by PPPACA PL111-
                148. Please review to be sure that addition reflects 
                policy intent.]
            (2) in subsection (b)--
                    (A) in paragraph (1), in the flush matter following 
                subparagraph (B), by striking ``$2,000'' and inserting 
                ``$4,000'';
                    (B) in paragraph (2), by striking ``$2,000'' and 
                inserting ``$4,000''; and
                    (C) in paragraph (3)(A)(i), by striking ``$5,000'' 
                and inserting ``$10,000''.
    (b) Increased Criminal Fines.--Section 1128B of the Social Security 
Act (42 U.S.C. 1320a-7b) is amended--
            (1) in subsection (a), in the flush matter following 
        paragraph (6)--
                    (A) by striking ``$25,000'' and inserting 
                ``$100,000''; and
                    (B) by striking ``$10,000'' and inserting 
                ``$20,000'';
            (2) in subsection (b)--
                    (A) in paragraph (1), in the flush matter following 
                subparagraph (B), by striking ``$25,000'' and inserting 
                ``$100,000''; and
                    (B) in paragraph (2), in the flush matter following 
                subparagraph (B), by striking ``$25,000'' and inserting 
                ``$100,000'';
            (3) in subsection (c), by striking ``$25,000'' and 
        inserting ``$100,000'';
            (4) in subsection (d), in the second flush matter following 
        subparagraph (B), by striking ``$25,000'' and inserting 
        ``$100,000''; and
            (5) in subsection (e), by striking ``$2,000'' and inserting 
        ``$4,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to civil money penalties and fines imposed for actions taken on 
or after the date of enactment of this Act.

SEC. 3. INCREASED SENTENCES FOR FELONIES INVOLVING MEDICARE FRAUD AND 
              ABUSE.

    (a) False Statements and Representations.--Section 1128B(a) of the 
Social Security Act (42 U.S.C. 1320a-7b(a)) is amended, in clause (i) 
of the flush matter following paragraph (6), by striking ``not more 
than five years'' and inserting ``not more than 10 years''.
    (b) Anti-Kickback.--Section 1128B(b) of the Social Security Act (42 
U.S.C. 1320a-7b(b)) is amended--
            (1) in paragraph (1), in the flush matter following 
        subparagraph (B), by striking ``not more than five years'' and 
        inserting ``not more than 10 years''; and
            (2) in paragraph (2), in the flush matter following 
        subparagraph (B), by striking ``not more than five years'' and 
        inserting ``not more than 10 years''.
    (c) False Statement or Representation With Respect to Conditions or 
Operations of Facilities.--Section 1128B(c) of the Social Security Act 
(42 U.S.C. 1320a-7b(c)) is amended by striking ``not more than five 
years'' and inserting ``not more than 10 years''.
    (d) Excess Charges.--Section 1128B(d) of the Social Security Act 
(42 U.S.C. 1320a-7b(d)) is amended, in the second flush matter 
following subparagraph (B), by striking ``not more than five years'' 
and inserting ``not more than 10 years''.
    (e) Effective Date.--The amendments made by this section shall 
apply to criminal penalties imposed for actions taken on or after the 
date of enactment of this Act.

SEC. 4. INCREASED SURETY BOND REQUIREMENT FOR SUPPLIERS OF DME.

    (a) In General.--Section 1834(a)(16)(B) of the Social Security Act 
(42 U.S.C. 1395m(a)(16)(B)) is amended by striking ``$50,000'' and 
inserting ``$500,000''.
    (b) Effective Date.--The amendment made by this section shall apply 
to the issuance (or renewal) of a provider number for a supplier of 
durable medical equipment on or after the date of enactment of this 
Act.
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