,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dibj  ,,in ,,the ,,house ,,of  
,,representatives  ,june #ai1 #bjad ,mr4
 ,tiberi 7for himself1 ,mr4 ,larson of  
,connecticut1 ,mrs4 ,black1 ,mr4        
,visclosky1 ,mr4 ,johnson of ,ohio1 and 
,mr4 ,joyce7 introduced the following   
bill2 which was referred to the         
,committee on ,energy and ,commerce1 and
 in addition to the ,committee on ,ways 
and ,means1 for a period to be          
subsequently determined by the ,speaker1
 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 require   
,state licensure and performance        
guarantees for entities submitting bids 
under the ,medicare durable medical     
equipment1 prosthetics1 orthotics1 and  
supplies 7,,dmepos7 competitive         
acquisition program1 and for other      
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,medicare ,,dmepos  

,competitive ,bidding ,improvement ,act 
of #bjad4  #b4 ,requiring ,state        
licensure and performance guarantees of 
bidding entities under the ,medicare    
,,dmepos competitive acquisition program
  7a7 ,in general ,section #ahdg7;a77#a7
 of the ,social ,security ,act 7#db     
,u4,s4,c4 #aciew-#c7;a77#a77 is amended 
by adding at the end the following new  
subparagraphs3  7,g7 ,requiring state   
licensure and performance guarantees for
 bidding entities ,with respect to      
rounds of competitions beginning under  
this subsection on or after the date of 
enactment of this subparagraph1 the     
,secretary may not accept a bid from an 
entity for an area unless1 as of the    
deadline for bid submission--  7i7 the  
entity meets applicable ,state licensure
 requirements for such area for all     
items in such bid for a product         
category2 and  7ii7 the entity has      
obtained 7and provided the ,secretary   
with proof of having obtained7 a bid and
 performance surety bond 7in this       

paragraph referred to as a bid and      
performance bond7 in a form specified by
 the ,secretary consistent with         
subparagraph 7,h7 and in an amount that 
is not less than #ej1jjj for each such  
area4  7,h7 ,treatment of bid and       
performance bonds submitted  7i7 ,for   
successful bidders ,in the case of a    
bidding entity that is offered a        
contract for an area for a product      
category1 if the entity's composite     
bid--  7,i7 is at or below the product  
category's median composite bid rate for
 the area and the entity does not accept
 the contract offered for the product   
and area1 the bid and performance bond  
submitted shall be forfeited by the     
bidding entity and the ,secretary shall 
collect on it2 or  7,,ii7 is above such 
median composite bid rate and the entity
 chooses not to accept a contract for   
the product category1 the bid and       
performance bond submitted shall be     
returned within #ij days of the date of 
notice of nonacceptance4  7ii7          

,conversion into performance guarantee  
upon contracting ,if a bidding entity is
 offered and accepts the contract1 the  
bid and performance bond submitted shall
 be retained as a performance guarantee 
under the contract and--  7,i7 shall be 
returned to the entity within #ij days  
of the date of completion of the        
contract2 or  7,,ii7 shall be collected 
on by the ,secretary if the contract is 
terminated before the expiration of the 
contract4  7iii7 ,return of bond for    
losing bidders ,if a bidding entity     
submits a bid that is not accepted for  
an area1 the bid and performance bond   
submitted for the entity for such area  
shall be returned within #ij days of the
 date of notice of nonacceptance4  4