[Congressional Record Volume 145, Number 90 (Wednesday, June 23, 1999)]
[Extensions of Remarks]
[Page E1375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 INTRODUCTION OF LEGISLATION TO IMPROVE MEDICARE'S SURETY BOND PROGRAM

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, June 23, 1999

  Mr. STARK. Mr. Speaker, on behalf of Congresswoman Thurman and 
myself, I am today introducing legislation based on recommendations of 
the U.S. General Accounting Office to improve the operation of the 
Medicare home health agency, durable medical equipment, and certain 
rehabilitation providers' surety bond program.
  Enacted as part of the 1997 Balanced Budget Act, the surety bond 
program was one of a series of anti-fraud, waste, and abuse provisions 
designed to crack down on the outrageous proliferation and increased 
utilization of questionable Medicare providers.
  The General Accounting Office issued a report in January, 1999 (GAO/
HEHS-99-03) entitled, ``Medicare Home Health Agencies: Role of Surety 
Bonds in Increasing Scrutiny and Reducing Overpayments.'' The report 
focuses on problems in the surety bond provisions and makes a number of 
recommendations. Our bill addresses most of those recommendations.
  While the BBA has had a huge impact in controlling the growth of 
spending and weeding out questionable and fraudulent providers, the 
surety bond program has had severe administrative problems. It needs 
simplification and needs to be focused on the start-up providers who 
have no track record and who may be the source of program abuse. Once a 
provider has proven that they are a reliable and dependable provider, 
continuing to require a surety bond just increases program costs. Our 
bill, therefore requires one surety bond for Medicare and Medicaid (not 
a separate bond for each program) for the two years of a provider's 
operations, and limits the size of the bond to $50,000 (not the larger 
of $50,000 or 15% of an agency's Medicare revenues) and makes it clear 
that orthotic and prosthethic providers includng angioplastologists, 
are not meant to be covered by the surety bond requirement.
  Mr. Speaker, we hope that this legislation can be enacted. It will 
reduce hassle and paperwork, while still helping weed out questionale 
home health and DME providers from starting in the Medicare program.

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