CMS Announces Surety Bond Requirements for DMEPOS Suppliers

On December 29, 2008, the Centers for Medicare & Medicaid Services (CMS) announced regulations requiring suppliers of certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) to post a surety bond as a condition of new or continued Medicare enrollment. The regulation states that beginning May 4, 2009, suppliers seeking to enroll or changing the ownership of a DMEPOS supplier must submit a $50,000 surety bond for each assigned NPI for which the DMEPOS supplier is seeking toobtain Medicare billing privileges. Existing DMEPOS suppliers must submit to the NSC a $50,000 surety bond for each assigned NPI no later than October 2, 2009.

In addition, a DMEPOS supplier enrolling a new practice location must submit to the NSC a new surety bond or an amendment or rider to the existing bond, showing the new practice location is covered by an additional base surety bond of $50,000. Suppliers who have certain adverse legal actions imposed against them in the past may be required to post a higher bond amount. The final regulations permit the NSC to require DMEPOS suppliers to obtain a base surety bond of $50,000 and an elevated surety bond of $50,000 for each occurrence of an adverse legal action within ten years preceding enrollment, revalidation, or reenrollment in the Medicare program.

The final regulations are effective March 3, 2009. Some companies or organizations that supply DMEPOS are exempt from the surety bond requirements. Such exemptions include:

• Certain physician and non-physician practitioners
• Physical therapists
• Occupational therapists
• State-licensed orthotic and prosthetic personnel
• Government-owned suppliers

 DMEPOS Suppliers $50,0000 Bond Application  - Here
  Business and Personal Financial Statements Required
   Rates start at $250 annually

South Coast Surety has access to All Markets writing this bond. We can match your firm with the best program available.

RATES START AT ONLY $250

For the Best Program:

If an applicant needs one bond, we need the application completed and signed, including:

1.      The complete name and address for the applicant.  Please note this is the name the bond will be written in.

2.      National Provider Identification (NPI) Number and NationalProvider Transaction Access Number (PTAN) – also known as the Medicare Legacy Number per enrolled location.

3.      Personal information on each owner of the business.  This includes the name, address, social security number and verification whether he/she owns any real estate.

4.      Business and personal indemnity of all owners and spouses. 

5.      Information regarding how long they have been in business.

 If the applicant has been in business for less than three years, does not own real estate, or has more than one enrolled location and therefore needs more than one bond, the following additional information is needed:   

6.      A business financial statement.

7.      A personal financial statement from each owner.