#aadth ,,congress  #ast ,session  ,h4   
,r4 #bhd  ,,an ,,act  ,to amend title   
,,xviii of the ,social ,security ,act to
 require ,state licensure and bid surety
 bonds 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 #8#8,medicare       
,,dmepos ,competitive ,bidding          
,improvement ,act of #bjae''4  #b4      
,requiring bid surety bonds and ,state  
licensure for entities submitting bids  
under the ,medicare ,,dmepos competitive
 acquisition program  7a7 ,bid surety   
bonds ,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 bid     
bonds for bidding entities ,with respect
 to rounds of competitions beginning    
under this subsection for contracts     

beginning not earlier than ,january #a1 
#bjag1 and not later than ,january #a1  
#bjai1 an entity may not submit a bid   
for a competitive acquisition area      
unless1 as of the deadline for bid      
submission1 the entity has obtained 7and
 provided the ,secretary with proof of  
having obtained7 a bid surety bond 7in  
this paragraph referred to as a bid     
bond7 in a form specified by the        
,secretary consistent with subparagraph 
7,h7 and in an amount that is not less  
than #ej1jjj and not more than #ajj1jjj 
for each competitive acquisition area in
 which the entity submits the bid4  7,h7
 ,treatment of bid bonds submitted  7i7 
,for bidders that submit bids at or     
below the median and are offered but do 
not accept the contract ,in the case of 
a bidding entity that is offered a      
contract for any product category for a 
competitive acquisition area1 if--  7,i7
 the entity's composite bid for such    
product category and area was at or     
below the median composite bid rate for 

all bidding entities included in the    
calculation of the single payment       
amounts for such product category and   
area2 and  7,,ii7 the entity does not   
accept the contract offered for such    
product category and area1  the bid bond
 submitted by such entity for such area 
shall be forfeited by the entity and the
 ,secretary shall collect on it4  7ii7  
,treatment of other bidders ,in the case
 of a bidding entity for any product    
category for a competitive acquisition  
area1 if the entity does not meet the   
bid forfeiture conditions in subclauses 
7,i7 and 7,,ii7 of clause 7i7 for any   
product category for such area1 the bid 
bond submitted by such entity for such  
area shall be returned within #ij days  
of the public announcement of the       
contract suppliers for such area4  4    
7b7 ,state licensure  7#a7 ,in general  
,section #ahdg7;b77#b77;,a7 of the      
,social ,security ,act 7#db ,u4,s4,c4   
#aciew-#c7;b77#b77;,a77 is amended by   
adding at the end the following new     

clause3  7v7 ,the entity meets          
applicable ,state licensure             
requirements4  4  7#b7 ,construction    
,nothing in the amendment made by       
paragraph 7#a7 shall be construed as    
affecting the authority of the          
,secretary of ,health and ,human        
,services to require ,state licensure of
 an entity under the ,medicare          
competitive acquisition program under   
section #ahdg of the ,social ,security  
,act 7#db ,u4,s4,c4 #aciew-#c7 before   
the date of the enactment of this ,act4 
7c7 ,,gao report on bid bond impact on  
small suppliers  7#a7 ,study ,the       
,comptroller ,general of the ,united    
,states shall conduct a study that      
evaluates the effect of the bid surety  
bond requirement under the amendment    
made by subsection 7a7 on the           
participation of small suppliers in the 
,medicare ,,dmepos competitive          
acquisition program under section #ahdg 
of the ,social ,security ,act 7#db      
,u4,s4,c4 #aciew-#c74  7#b7 ,report ,not

 later than #f months after the date    
contracts are first awarded subject to  
such bid surety bond requirement1 the   
,comptroller ,general shall submit to   
,congress a report on the study         
conducted under paragraph 7#a74 ,such   
report shall include recommendations for
 changes in such requirement in order to
 ensure robust participation by         
legitimate small suppliers in the       
,medicare ,,dmepos competition          
acquisition program4  ,passed the ,house
 of ,representatives ,march #af1        
#bjae4;,clerk4