SEC. 1148. DURABLE MEDICAL EQUIPMENT PROGRAM IMPROVEMENTS.

[a] Waiver of Surety Bond Requirement- Section- 1834[a][16] of the Social Security Act [42 U.S.C. 1395m[a][16]] is amended by adding at the end the following: 'The requirement for a surety bond described in subparagraph [B] shall not apply in the case of a pharmacy [i] that has been enrolled under section 1866[j] as a supplier of durable medical equipment, prosthetics, orthotics, and supplies and has been issued [which may include renewal of] a provider number [as described in the first sentence of this paragraph] for at least 5 years, and [ii] for which a final adverse action [as defined in section 424.57[a] of title 42, Code of Federal Regulations] has never been imposed.'.

[b] Ensuring Supply of Oxygen Equipment-

[1] IN GENERAL- Section- 1834[a][5][F] of the Social Security Act [42 U.S.C. 1395m[a][5][F]] is amended--

[A] in clause [ii], by striking 'After the' and inserting 'Except as provided in clause [iii], after the'; and

[B] by adding at the end the following new clause:

'[iii] CONTINUATION OF SUPPLY- In the case of a supplier furnishing such equipment to an individual under this subsection as of the 27th month of the 36 months described in clause [i], the supplier furnishing such equipment as of such month shall continue to furnish such equipment to such individual [either directly or though arrangements with other suppliers of such equipment] during any subsequent period of medical need for the remainder of the reasonable useful lifetime of the equipment, as determined by the Secretary, regardless of the location of the individual, unless another supplier has accepted responsibility for continuing to furnish such equipment during the remainder of such period.'.

[2] EFFECTIVE DATE- The amendments made by paragraph [1] shall take effect as of the date of the enactment of this Act and shall apply to the furnishing of equipment to individuals for whom the 27th month of a continuous period of use of oxygen equipment described in section 1834[a][5][F] of the Social Security Act occurs on or after July 1, 2010.

[c] Treatment of Current Accreditation Applications- Section- 1834[a][20][F] of such Act [42 U.S.C. 1395m[a][20][F]] is amended--

[1] in clause [i]--

[A] by striking 'clause [ii]' and inserting 'clauses [ii] and [iii]'; and

[B] by striking 'and' at the end;

[2] by striking the period at the end of clause [ii][II] and by inserting '; and'; and

[3] by adding at the end the following:

'[iii] the requirement for accreditation described in clause [i] shall not apply for purposes of supplying diabetic testing supplies, canes, and crutches in the case of a pharmacy that is enrolled under section 1866[j] as a supplier of durable medical equipment, prosthetics, orthotics, and supplies. Any supplier that has submitted an application for accreditation before August 1, 2009, shall be deemed as meeting applicable standards and accreditation requirement under this subparagraph until such time as the independent accreditation organization takes action on the supplier's application.'.

[d] Restoring 36-Month Oxygen Rental Period in Case of Supplier Bankruptcy for Certain Individuals- Section- 1834[a][5][F] of such Act [42 U.S.C. 1395m[a][5][F]] is amended by adding at the end the following new clause:

'[iii] EXCEPTION FOR BANKRUPTCY- If a supplier of oxygen to an individual is declared bankrupt and its assets are liquidated and at the time of such declaration and liquidation more than 24 months of rental payments have been made, the individual may begin under this subparagraph a new 36-month rental period with another supplier of oxygen.'.