FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about DMEPOS bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
In 2009, the Centers for Medicare and Medicaid Services (CMS) decided to do something to help prevent fraudulent medical billing by healthcare providers. One of the biggest areas of billing fraud was in durable medical equipment, prosthetics, orthotics, and supplies, or DMEPOS. Most companies providing such items must post a $50,000 surety bond before they can bill Medicare. A DMEPOS bond protects Medicare against financial loss resulting from illegal practices such as fraudulent billing.
With few exceptions other than sole proprietorships, every company providing durable medical equipment, prosthetics, orthotics, and other supplies to Medicare patients must first purchase a DMEPOS bond.
You should be aware that there are accreditation requirements in addition to the bonding requirement that must be met before a DMEPOS supplier can begin billing Medicare. Physical and occupational therapists in private practice can obtain an exemption if they meet certain criteria.
As the agency requiring the bond, CMS is the obligee. The supplier required to purchase the bond is the principal, and the company that underwrites and issues the bond is the surety. CMS can file claims against the bond to recoup financial losses due to fraudulent billing. After determining the validity of a claim and paying it, the surety will recover the claim amount from the principal.
CMS requires a $50,000 bond amount for each DMEPOS supplier. However, suppliers maintaining multiple locations will need $50,000 of coverage for each location that has a separate National Provider Identifier (NPI).
Suppliers with a record of certain adverse actions in the previous ten years will also be required to maintain a higher bond amount. Some example of these include having had Medicare billing privileges revoked, a license suspended or revoked, having been convicted of a felony, or excluded from a federal/state healthcare program.
Applicants with good credit will typically pay anywhere from less than one percent to about 2% of the bond amount as the annual premium. Applicants with credit issues will pay a higher premium rate.
Use our convenient online system to apply for a DMEPOS bond today.
