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.

SA 3906. Mr. MARTINEZ submitted an amendment intended to be proposed
to amendment SA 3899 proposed by Mr. Dorgan (for himself, Ms.
Murkowski, Mr. Baucus, Mr. Kennedy, Mr. Smith, Mr. Nelson of Nebraska,
and Mr. Salazar) to the bill S. 1200, to amend the Indian Health Care
Improvement Act to revise and extend the Act; which was ordered to lie
on the table; as follows:

At the end of title II, add the following:

SEC. ___. 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

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(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. ____. 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. ___. 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.

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