PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-107
to such purchase is the payment amount determined under paragraph (2). "(11) IMPROPER BILLING AND REQUIREMENT OF PHYSICIAN ORDER.—
"(A) IMPROPER BILLING FOR CERTAIN RENTAL ITEMS.—Not-
withstanding any other provision of this title, a supplier of a covered item for which payment is made under this subsection and which is furnished on a rental basis shall continue to supply the item without charge (other than a charge provided under this subsection for the servicing of the item) after rental payments may no longer be made under this subsection. If a supplier knowingly and willfully violates the previous sentence, the Secretary may apply sanctions against the supplier under subsection (j)(2) in the same manner such sanctions may apply with respect to a physician. "(B) REQUIREMENT OF PHYSICIAN ORDER.—The Secretary is
authorized to require, for specified covered items, that payment may be made under this subsection with respect to the item only if a physician has communicated to the supplier, before delivery of the item, a written order for the item. "(12) REGIONAL CARRIERS.—The Secretary may designate, by regulation under section 1842, one carrier for each region (as defined in section 1886(d)(2)(D)) to process all claims within the region for covered items under this section. "(13) COVERED ITEM.—In this subsection, the term 'covered item' means— "(A) durable medical equipment (as defined in section 1861(n)), including such equipment described in section 1861(m)(5); BtK;.: "(B) prosthetic devices (described in section 1861(s)(8)), but not including parenteral and enteral nutrition nutrients, supplies, and equipment; and "(C) orthotics and prosthetics (described in section 1861(s)(9)); but does not include intraocular lenses. "(14) CARRIER.—In this subsection, any reference to the term 'carrier' includes a reference, with respect to durable medical equipment furnished by a home health agency as part of home health services, to a fiscal intermediary.", (c) STUDY AND EVALUATION.—(1) The Secretary of Health and
Human Services shall monitor the impact of the amendments made by this section on the availability of covered items and shall evaluate the appropriateness of the volume adjustment for oxygen and oxygen equipment under section 1834(a)(5)(C) of the Social Security Act (as amended by subsection (b) of this section). The Secretary shall report to Congress, by not later than January 1, 1991, on such impact and on the evaluation and shall include in such report recommendations for changes in payment methodology for covered items under section 1834(a) of such Act. (2) Before January 1, 1991, the Secretary may not conduct any demonstration project respecting alternative methods of payment for covered items under title XVIII of the Social Security Act. (3) In this subsection, the term "covered item" has the meaning given such term in section 1834(a)(13) of the Social Security Act (as amended by subsection (b) of this section).
42 USC 1395m note.