RESTRICTIONS ON CERTAIN MARKETING AND SALES ACTIVITIES.

SEC. 132. RESTRICTIONS ON CERTAIN MARKETING AND SALES ACTIVITIES. (a) Prohibiting Unsolicited Telephone Contacts From Suppliers of Durable Medical Equipment to Medicare Beneficiaries.— (1) In general.— Section 1834(a) (42 U.S.C. 1395m(a)) is amended by adding at the end the following new paragraph: “(17) Prohibition against unsolicited telephone contacts bu supplies.— “(A) In general.— A supplier of a covered item under this subsection may not contact an individual enrolled under this part by telephone regarding the furnishing of a covered item to the individual unless 1 of the following applies: “(i) The individual has given written permission to the supplier to make contact by telephone regarding the furnishing of a covered item. “(ii) The supplier has furnished a covered item to the individual and the supplier is contacting the individual only regarding the furnishing of such covered item. “(iii) If the contact is regarding the furnishing of a covered item other than a covered item already furnished to the individual, the supplier has furnished at least 1 covered item to the individual during the108 STAT. 4420 15-month period preceding the date on which the supplier makes such contact. “(B) Prohibiting payment for items furnished subsequent to unsolicited contacts.— If a supplier knowingly contacts an individual in violation of subparagraph (A), no payment may be made under this part for any item subsequently furnished to the individual by the supplier. “(C) Exclusion from program for suppliers engaging in pattern of unsolicited contacts.— If a Supplier knowingly contacts individuals in violation of subparagraph (A) to such an extent that the supplier’s conduct establishes a pattern of contacts in violation of such subparagraph, the Secretary shall exclude the supplier from participation in the programs under this Act, in accordance with the procedures set forth in subsections (c), (f), and (g) of section 1128.”. (2) Requiring refund of amounts collected for disallowed items.—Section 1834(a) (42 U.S.C. 1395m(a)), as amended by paragraph (1), is amended by adding at the end the following new paragraph: “(18) Refund of amounts collected for certain disallowed items.— “(A) In general.— If a non participating supplier furnishes to an individual enrolled under this part a covered item for which no payment may be made under this part by reason of paragraph (17)(B), the supplier shall refund on a timely basis to the patient (and shall be liable to the patient for) any amounts collected from the patient for the item, unless— “(i) the supplier establishes that the supplier did not know and could not reasonably have been expected to know that payment may not be made for the item by reason of paragraph (17)(B), or “(ii) before the item was furnished, the patient was informed that payment under this part may not be made for that item and the patient has agreed to pay for that item. “(B) Sanctions.— If a supplier knowingly and willfully fails to make refunds in violation of subparagraph (A), the Secretary may apply sanctions against the supplier in accordance with section 1842(j)(2). “(C) Notice.— Each carrier with a contract in effect under this part with respect to suppliers of covered items shall send any notice of denial of payment for covered items by reason of paragraph (17)(B) and for which payment is not requested on an assignment-related basis to the supplier and the patient involved. “(D) Timely basis defined.— A refund under subparagraph (A) is considered to be on a timely basis only if— “(i) in the case of a supplier who does not request reconsideration or seek appeal on a timely basis, the refund is made within 30 days after the date the supplier receives a denial notice under subparagraph (C), or “(ii) in the case in which such a reconsideration or appeal is taken, the refund is made within 15 days108 STAT. 4421 after the date the supplier receives notice of an adverse determination on reconsideration or appeal.”. (b) Conforming Amendment.— Section 1834(h)(3) (42 U.S.C. 1395m(h)(3)) is amended by striking “Paragraph (12)” and inserting “Paragraphs (12) and (17)”. (c) Effective Date.— The amendments made by subsections (a) and (b) shall apply to items furnished after the expiration of the 60-day period that begins on the date of the enactment of this Act.