[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3776 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3776

 To amend title XVIII of the Social Security Act to create alternative 
    sanctions for technical noncompliance with the Stark rule under 
                   Medicare, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2013

   Mr. Boustany (for himself, Mr. Kind, Mr. Bucshon, and Mr. Veasey) 
 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 create alternative 
    sanctions for technical noncompliance with the Stark rule under 
                   Medicare, 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 ``Stark Administrative Simplification 
Act''.

SEC. 2. ALTERNATIVE SANCTIONS FOR TECHNICAL NONCOMPLIANCE WITH STARK 
              RULE UNDER MEDICARE.

    Section 1877(g) of the Social Security Act (42 U.S.C. 1395nn(g)) is 
amended--
            (1) in paragraph (1), by striking ``No'' and inserting 
        ``Subject to paragraph (7), no'';
            (2) in paragraph (2), by striking ``If'' and inserting 
        ``Subject to paragraph (7), if'';
            (3) in paragraph (3), by striking ``Any'' and inserting 
        ``Subject to paragraph (7), any''; and
            (4) by adding at the end the following new paragraph:
            ``(7) Alternative sanctions for technical noncompliance.--
                    ``(A) Single penalty for compensation arrangements 
                in technical noncompliance.--In the case of a 
                compensation arrangement between a physician (or an 
                immediate family member of such physician) and a person 
                or entity that is in violation of subsection (a)(1) 
                solely due to technical noncompliance, instead of the 
                sanctions described in paragraphs (1), (2), and (3) for 
                any such violation, the person or entity with respect 
                to such arrangement shall be subject to a single civil 
                monetary penalty under this paragraph in an amount that 
                does not exceed--
                            ``(i) in the case where the disclosure of 
                        the violation is submitted to the Secretary not 
                        later than the date that is one year after the 
                        initial date of noncompliance, $5,000; and
                            ``(ii) in the case where the disclosure of 
                        the violation is submitted to the Secretary 
                        after the date that is one year after the 
                        initial date of noncompliance, $10,000.
                    ``(B) Acceptance of voluntary disclosures.--
                            ``(i) In general.--Effective on the date of 
                        the enactment of this paragraph, the Secretary 
                        shall accept the voluntary disclosure of a 
                        technically noncompliant compensation 
                        arrangement if such voluntary disclosure is 
                        made as described in clause (iii). The 
                        Secretary may accept and reasonably rely on 
                        information provided by a person or entity that 
                        is in violation of subsection (a)(1) only 
                        because of a compensation arrangement that is 
                        technically noncompliant.
                            ``(ii) Acceptance of disclosure.--The 
                        Secretary may reject any voluntary disclosure 
                        submitted under clause (iii) within 90 days 
                        after the receipt of the disclosure only if the 
                        Secretary determines that the disclosure does 
                        not conform to the requirements described in 
                        clause (iii). If the Secretary fails to reject 
                        a voluntary disclosure within such 90-day 
                        period, the voluntary disclosure is deemed to 
                        be accepted.
                            ``(iii) Voluntary disclosure.--A voluntary 
                        disclosure described in this clause, with 
                        respect to a compensation arrangement, is a 
                        disclosure submitted to the Secretary, by a 
                        party to such arrangement that contains the 
                        following:
                                    ``(I) The identification of the 
                                disclosing party and all other parties 
                                to the disclosed compensation 
                                arrangement.
                                    ``(II) A description of the 
                                compensation paid under the arrangement 
                                and the dates of noncompliance.
                                    ``(III) A certification by the 
                                disclosing party that the compensation 
                                arrangement--
                                            ``(aa) is technically 
                                        noncompliant (as defined by 
                                        subparagraph (C));
                                            ``(bb) has been cured of 
                                        the technical noncompliance, or 
                                        is otherwise terminated; and
                                            ``(cc) is, in the case of 
                                        technical noncompliance under 
                                        subparagraph (C)(i), a valid 
                                        contract under State law, an 
                                        arrangement consistent with 
                                        fair market value, and one in 
                                        which remuneration under the 
                                        arrangement is not determined 
                                        in a manner that takes into 
                                        account directly or indirectly 
                                        the volume or value of any 
                                        referrals.
                                    ``(IV) Payment for the full amount 
                                of the civil monetary penalty under 
                                clause (i) or (ii), as applicable, of 
                                subparagraph (A).
                    ``(C) Definition technical noncompliance.--For 
                purposes of this paragraph, the term `technical 
                noncompliance' means an arrangement that is in 
                violation of subsection (a)(1) only because--
                            ``(i) the arrangement is not set forth in 
                        writing;
                            ``(ii) the arrangement is not signed by 1 
                        or more parties to the arrangement; or
                            ``(iii) a prior arrangement expired and 
                        services continued without the execution of an 
                        amendment to such arrangement or a new 
                        arrangement.
                    ``(D) Applicability to pre-enactment disclosures to 
                relieve backlog.--The Secretary shall provide for the 
                application of this paragraph to any technically 
                noncompliant compensation arrangement that has been 
                disclosed, and to which there has not been a final 
                settlement as of the date of enactment of this 
                paragraph.
                    ``(E) Report.--Not later than 24 months after the 
                date of enactment of this paragraph, the Inspector 
                General of the Department of Health and Human Services 
                shall submit to Congress a report on the implementation 
                of this paragraph. Such report shall include--
                            ``(i) the number of persons or entities 
                        making disclosures of technical noncompliance 
                        under this paragraph;
                            ``(ii) the amount and type of alternative 
                        sanctions collected or imposed for technical 
                        noncompliance;
                            ``(iii) the types of violations disclosed; 
                        and
                            ``(iv) such other information as the 
                        Inspector General determines may be necessary 
                        to evaluate the impact of this paragraph.''.
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