S 2603 IS
110th CONGRESS
2d Session
S. 2603
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 SENATE OF THE UNITED STATES
February 7 (legislative day, February 6), 2008
Mr. MARTINEZ (for himself, Mr. CORNYN, Mr. COLEMAN, Mr. ALEXANDER, Mr. VITTER, and Mr. DEMINT) introduced the following bill; which was read twice and referred to the Committee on Finance
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.
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 (7)--
(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' and inserting `$100,000'; and
(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 5 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 5 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 5 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 5 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 5 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.
U.S. Congress - Text of S.2603 as Introduced in Senate Medicare Fraud Prevention Act of 2008
