Bill to limit Stark Law penalties reintroduced in U.S. House

Last month, U.S. Rep. Charles Boustany (R-LA) and Ron Kind (D-WI) re-introduced the Stark Administrative Simplification Act (HR 776), which aims to rein in the penalties that can be enforced against self-referral under the Stark Law.

Violations of the Stark Law for having an unwritten, unsigned or lapsed agreement that is otherwise compliant with federal laws would have penalties capped at $5,000 if the violation is disclosed within one year. Penalties would be limited to $10,000 if a violation is disclosed more than one year from the date of noncompliance. The bill’s sponsors also say the legislation would streamline the process for disclosure and resolution.

Self-referrals have been a hot topic within radiology as imaging services continue to be scrutinized for appropriate utilization.

Analysts have suggested HR 776 could generate up to $1 billion in new revenue over a 10-year period, according to a statement from Boustany. The bill is currently in committee awaiting consideration before the U.S. House.

Evan Godt
Evan Godt, Writer

Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.

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