MODERNIZING THE APPLICATION OF THE STARK RULE UNDER MEDICARE.

SEC. 50404. MODERNIZING THE APPLICATION OF THE STARK RULE UNDER MEDICARE. (a) Clarification of the Writing Requirement and Signature Requirement for Arrangements Pursuant to the Stark Rule (1) Writing requirement Section 1877(h)(1) of the Social Security Act (42 U.S.C. 1395nn(h)(1)) is amended by adding at the end the following new subparagraph: “(D) Written requirement clarified In the case of any requirement pursuant to this section for a compensation arrangement to be in writing, such requirement shall be satisfied by such means as determined by the Secretary, including by a collection of documents, including contemporaneous documents evidencing the course of conduct between the parties involved.” . (2) Signature requirement Section 1877(h)(1) of the Social Security Act (42 U.S.C. 1395nn(h)(1)), as amended by paragraph (1), is further amended by adding at the end the following new subparagraph: “(E) Special rule for signature requirements In the case of any requirement pursuant to this section for a compensation arrangement to be in writing and signed by the parties, such signature requirement shall be met if— “(i) not later than 90 consecutive calendar days immediately following the date on which the compensation arrangement became noncompliant, the parties obtain the required signatures; and “(ii) the compensation arrangement otherwise complies with all criteria of the applicable exception.” . (b) Indefinite Holdover for Lease Arrangements and Personal Services Arrangements Pursuant to the Stark Rule Section 1877(e) of the Social Security Act (42 U.S.C. 1395nn(e)) is amended— (1) in paragraph (1), by adding at the end the following new subparagraph: “(C) Holdover lease arrangements In the case of a holdover lease arrangement for the lease of office space or equipment, which immediately follows a lease arrangement described in subparagraph (A) for the use of such office space or subparagraph (B) for the use of such equipment and that expired after a term of at least 1 year, payments made by the lessee to the lessor pursuant to such holdover lease arrangement, if— “(i) the lease arrangement met the conditions of subparagraph (A) for the lease of office space or subparagraph (B) for the use of equipment when the arrangement expired; “(ii) the holdover lease arrangement is on the same terms and conditions as the immediately preceding arrangement; and “(iii) the holdover arrangement continues to satisfy the conditions of subparagraph (A) for the lease of office space or subparagraph (B) for the use of equipment.” ; and (2) in paragraph (3), by adding at the end the following new subparagraph: “(C) Holdover personal service arrangement In the case of a holdover personal service arrangement, which immediately follows an arrangement described in subparagraph (A) that expired after a term of at least 1 year, remuneration from an entity pursuant to such holdover personal service arrangement, if— “(i) the personal service arrangement met the conditions of subparagraph (A) when the arrangement expired; “(ii) the holdover personal service arrangement is on the same terms and conditions as the immediately preceding arrangement; and “(iii) the holdover arrangement continues to satisfy the conditions of subparagraph (A).” .