Laws: Cases and Codes : U.S. Code : Title 42 : Section 1320a-7d


   
U.S. Code as of: 01/19/04
Section 1320a-7d. Guidance regarding application of health care fraud and abuse sanctions

    (a) Solicitation and publication of modifications to existing safe
      harbors and new safe harbors
      (1) In general
        (A) Solicitation of proposals for safe harbors
          Not later than January 1, 1997, and not less than annually
        thereafter, the Secretary shall publish a notice in the Federal
        Register soliciting proposals, which will be accepted during a
        60-day period, for - 
            (i) modifications to existing safe harbors issued pursuant
          to section 14(a) of the Medicare and Medicaid Patient and
          Program Protection Act of 1987 (42 U.S.C. 1320a-7b note);
            (ii) additional safe harbors specifying payment practices
          that shall not be treated as a criminal offense under section
          1320a-7b(b) of this title and shall not serve as the basis
          for an exclusion under section 1320a-7(b)(7) of this title;
            (iii) advisory opinions to be issued pursuant to subsection
          (b) of this section; and
            (iv) special fraud alerts to be issued pursuant to
          subsection (c) of this section.
        (B) Publication of proposed modifications and proposed
          additional safe harbors
          After considering the proposals described in clauses (i) and
        (ii) of subparagraph (A), the Secretary, in consultation with
        the Attorney General, shall publish in the Federal Register
        proposed modifications to existing safe harbors and proposed
        additional safe harbors, if appropriate, with a 60-day comment
        period. After considering any public comments received during
        this period, the Secretary shall issue final rules modifying
        the existing safe harbors and establishing new safe harbors, as
        appropriate.
        (C) Report
          The Inspector General of the Department of Health and Human
        Services (in this section referred to as the "Inspector
        General") shall, in an annual report to Congress or as part of
        the year-end semiannual report required by section 5 of the
        Inspector General Act of 1978 (5 U.S.C. App.), describe the
        proposals received under clauses (i) and (ii) of subparagraph
        (A) and explain which proposals were included in the
        publication described in subparagraph (B), which proposals were
        not included in that publication, and the reasons for the
        rejection of the proposals that were not included.
      (2) Criteria for modifying and establishing safe harbors
        In modifying and establishing safe harbors under paragraph
      (1)(B), the Secretary may consider the extent to which providing
      a safe harbor for the specified payment practice may result in
      any of the following:
          (A) An increase or decrease in access to health care
        services.
          (B) An increase or decrease in the quality of health care
        services.
          (C) An increase or decrease in patient freedom of choice
        among health care providers.
          (D) An increase or decrease in competition among health care
        providers.
          (E) An increase or decrease in the ability of health care
        facilities to provide services in medically underserved areas
        or to medically underserved populations.
          (F) An increase or decrease in the cost to Federal health
        care programs (as defined in section 1320a-7b(f) of this
        title).
          (G) An increase or decrease in the potential overutilization
        of health care services.
          (H) The existence or nonexistence of any potential financial
        benefit to a health care professional or provider which may
        vary based on their decisions of - 
            (i) whether to order a health care item or service; or
            (ii) whether to arrange for a referral of health care items
          or services to a particular practitioner or provider.

          (I) Any other factors the Secretary deems appropriate in the
        interest of preventing fraud and abuse in Federal health care
        programs (as so defined).
    (b) Advisory opinions
      (1) Issuance of advisory opinions
        The Secretary, in consultation with the Attorney General, shall
      issue written advisory opinions as provided in this subsection.
      (2) Matters subject to advisory opinions
        The Secretary shall issue advisory opinions as to the following
      matters:
          (A) What constitutes prohibited remuneration within the
        meaning of section 1320a-7b(b) of this title or section
        1320a-7a(i)(6) of this title.
          (B) Whether an arrangement or proposed arrangement satisfies
        the criteria set forth in section 1320a-7b(b)(3) of this title
        for activities which do not result in prohibited remuneration.
          (C) Whether an arrangement or proposed arrangement satisfies
        the criteria which the Secretary has established, or shall
        establish by regulation for activities which do not result in
        prohibited remuneration.
          (D) What constitutes an inducement to reduce or limit
        services to individuals entitled to benefits under subchapter
        XVIII of this chapter or subchapter XIX of this chapter within
        the meaning of section 1320a-7a(b) of this title.
          (E) Whether any activity or proposed activity constitutes
        grounds for the imposition of a sanction under section 1320a-7,
        1320a-7a, or 1320a-7b of this title.
      (3) Matters not subject to advisory opinions
        Such advisory opinions shall not address the following matters:
          (A) Whether the fair market value shall be, or was paid or
        received for any goods, services or property.
          (B) Whether an individual is a bona fide employee within the
        requirements of section 3121(d)(2) of the Internal Revenue Code
        of 1986.
      (4) Effect of advisory opinions
        (A) Binding as to Secretary and parties involved
          Each advisory opinion issued by the Secretary shall be
        binding as to the Secretary and the party or parties requesting
        the opinion.
        (B) Failure to seek opinion
          The failure of a party to seek an advisory opinion may not be
        introduced into evidence to prove that the party intended to
        violate the provisions of sections (!1) 1320a-7, 1320a-7a, or
        1320a-7b of this title.

      (5) Regulations
        (A) In general
          Not later than 180 days after August 21, 1996, the Secretary
        shall issue regulations to carry out this section. Such
        regulations shall provide for - 
            (i) the procedure to be followed by a party applying for an
          advisory opinion;
            (ii) the procedure to be followed by the Secretary in
          responding to a request for an advisory opinion;
            (iii) the interval in which the Secretary shall respond;
            (iv) the reasonable fee to be charged to the party
          requesting an advisory opinion; and
            (v) the manner in which advisory opinions will be made
          available to the public.
        (B) Specific contents
          Under the regulations promulgated pursuant to subparagraph
        (A) - 
            (i) the Secretary shall be required to issue to a party
          requesting an advisory opinion by not later than 60 days
          after the request is received; and
            (ii) the fee charged to the party requesting an advisory
          opinion shall be equal to the costs incurred by the Secretary
          in responding to the request.
      (6) Application of subsection
        This subsection shall apply to requests for advisory opinions
      made on or after the date which is 6 months after August 21,
      1996.
    (c) Special fraud alerts
      (1) In general
        (A) Request for special fraud alerts
          Any person may present, at any time, a request to the
        Inspector General for a notice which informs the public of
        practices which the Inspector General considers to be suspect
        or of particular concern under the Medicare program under
        subchapter XVIII of this chapter or a State health care
        program, as defined in section 1320a-7(h) of this title (in
        this subsection referred to as a "special fraud alert").
        (B) Issuance and publication of special fraud alerts
          Upon receipt of a request described in subparagraph (A), the
        Inspector General shall investigate the subject matter of the
        request to determine whether a special fraud alert should be
        issued. If appropriate, the Inspector General shall issue a
        special fraud alert in response to the request. All special
        fraud alerts issued pursuant to this subparagraph shall be
        published in the Federal Register.
      (2) Criteria for special fraud alerts
        In determining whether to issue a special fraud alert upon a
      request described in paragraph (1), the Inspector General may
      consider - 
          (A) whether and to what extent the practices that would be
        identified in the special fraud alert may result in any of the
        consequences described in subsection (a)(2) of this section;
        and
          (B) the volume and frequency of the conduct that would be
        identified in the special fraud alert.



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