Senators Introduce Medicare Fraud Prevention Act of 2008

On February 6, 2008, Senators Mel Martinez and John Cornyn, and several other Senators, introduced the Medicare Fraud Prevention Act of 2008 (S. 2603). 

If enacted, the Medicare Fraud Prevention Act of 2008 (Act) would double the civil monetary penalties associated with improperly filed claims and payments to induce the reduction or limitation of services. The Act would also quadruple certain criminal fines, including the criminal fines associated with false statements and violations of the Federal anti-kickback provisions.  In addition, the Act would increase the maximum criminal sentence for certain violations. For example, the Act would increase the Federal anti-kickback provision's maximum criminal sentence from 5 to 10 years.

The Act would also amend the Federal statutory provisions establishing a $50,000 surety bond requirement for suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS).  The Act would increase that surety bond amount to $500,000.  On August 1, 2007, the Centers for Medicare & Medicaid Services (CMS) published a Proposed Rule that would require DMEPOS suppliers to obtain and furnish a surety bond to the National Supplier Clearinghouse in the amount of at least $65,000. In the Proposed Rule, CMS arrived at the $65,000 surety bond amount by adjusting the $50,000 statutory surety bond amount by the Consumer Price Index.

The Medicare Fraud Prevention Act of 2008 (S. 2603) has been referred to the Senate Finance Committee.