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DMEPOS Surety Bonds

What is a DMEPOS Bond?

  • DMEPOS stands for Durable Medical Equipment, Prosthetics, Orthotics and Supplies. The DMEPOS Bond is also called a Medicare Bond, Medicare Surety Bond, or Medical Supply Surety Bond. To apply for enrollment in Medicare to provide this type of equipment, a minimum $50,000 surety bond is required to be included with the application. There are certain exemptions to the bonding requirement.
  • Suppliers that sell or rent Part B-covered items to Medicare beneficiaries must post a $50,000 surety bond for each National Provider Identifier (NPI) location they operate. In addition, higher amounts in $50,000 increments may be required if, over the most recent ten years, any enumerated violations have been committed.
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  • Durable Medical Equipment, Prosthetics, Orthotics and Supplies Surety Bonds or Medicare Surety Bonds are individually underwritten so the cost can vary and is heavily dependent on the credit score of the applicant; sometimes, but rarely, personal financials and business financials may be required depending on credit standing. Customers with good credit scores could qualify for rates lower than 1% of the bond amount. Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types — from excellent to poor — as such those terms vary.
  • DMEPOS Supplier Bonds can be issued for as low as 0.5% of the bond amount (so, $250 for a $50,000 bond) for Applicants with great credit scores (generally 680 or higher). Most applicants will pay between 0.5% and 3% of the total bond amount.

The Medicare Supplier Bond is in place to protect the taxpayer against fraudulent billing practices or other illegal business practices committed by certain suppliers of services paid by Medicare. All DMEPOS suppliers are required to comply with Section I (Supplier Business Service Requirements) and Section II (Supplier Product-Specific Service Requirements) of the DMEPOS Quality Standards as well as Appendices A, B, and/or C as needed. These standards are listed in 42 Code of Federal Regulations (CFR), part 424, section 57.

The Medicare Surety Bond is required to be submitted to the National Supplier Clearinghouse (NSC) by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS). CMS published a final rule in the Federal Register on Jan. 2, 2009, which implemented Section 4312(a) and Section 4312(b) of the Balanced Budget Act of 1997; these sections required suppliers to obtain and maintain a surety bond to be in an amount of not less than $50,000. Although there is no standard form required, the certain specific wording must be in any form submitted. The Obligee reads as the Centers for Medicare & Medicaid Services.

The base DMEPOS Surety Bond is not limited in duration and runs continuously from effective date until it is canceled. However, CMS has established a 3-year duration on elevated surety bond amounts. The bonding company will bill for renewal annually.

Contact The ProSure Group. As surety bond experts in business over 23 years in Florida, The ProSure Group has handled hundreds of bonds of this type and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.

CMS-855S is the comprehensive application required for enrollment.

If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many
DMEPOS Surety Bonds Experts!
Type Bond Obligee Bond Amount
Tax DMEPOS Bond U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services
$50,000 Minimum