Federal legislation requires current and enrolling Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Providers to submit a $50,000 surety bond to the NSC:
Any new suppliers seeking enrollment into the program, changing ownership or opening a new location are required to purchase the DMEPOS Bonds by May 4, 2009
Existing Medicare DMEPOS suppliers must meet the DMEPOS bond requirement by October 2, 2009
Any supplier who does not meet their required deadline will have their Medicare billing privileges revoked, and any applications submitted after May 4, 2009 without a bond will be rejected at the time of submission. The bonds will need to be filed with the National Supplier Clearinghouse located in Columbia, South Carolina. The Center for Medicare Services will soon provide suppliers with more information about filing the bonds.
Great Rates & Fast Service Securing Your DMEPOS Surety Bonds
Working with an experienced surety broker can help you secure the best rates on your DMEPOS Surety Bond.
Brunswick Companies' Surety Bond Group is a full-service, national surety bonding agency, licensed in every U.S. state. We provide knowledgeable assistance to businesses in need of all types of surety bonds, including DMEPOS Bonds.
If you have any questions about this new CMS mandate, or simply want someone to explain it the new requirements or the surety bonding process to you in understandable terms, please call Brunswick Companies' Surety Bond Group at 1-800-686-8080. We will answer all your questions and can help you obtain the bond you need.
As Surety specialists, we have decades of experience in serving a wide range of specialized bonding needs. We have DMEPOS bond providers in place and can help you secure the necessary surety bond. We'll make sure you obtain bonding at a level which meets your situation, and ensure that your bond(s) meets the federal guidelines:
You obtain your bond from a federally certified surety provider, as required
Your bond meets the bond documentation requirements
Your bond conforms with the required surety amount.
Recent clarifications of Federal legislation require current and enrolling DMEPOS Providers to submit a $50,000 surety bond to the NSC on a per NPI basis (assigned National Provider Identifier number with Medicare billing privileges).
Thus, DME businesses with multiple locations billing Medicare will need to obtain a $50,000 bond per location: one for each individual NPI. Suppliers with multiple NPIs may opt to obtain a single bond covering all locations. For example, a supplier with two NPIs may obtain a single $100,000 bond, rather than two $50,000 bonds. Suppliers purchasing a single bond to cover multiple locations must list all covered locations on the bond.
Adverse Actions History Triggers Additional DMEPOS Bond Requirements
Any supplier who has had one of the following legal actions imposed against them by Medicare, a state or federal authority is deemed to be of "significantly higher risk" and is required to provide an additional $50,000 per adverse action:
Medicare suspension or revocation of billing privileges
Suspension or revocation of a license to provide healthcare by any state licensing authority
Suspension or revocation of Medicare accreditation by an accrediting organization
Conviction of a federal or state felony offense within the past 10 years
Exclusion or debarment from participation in any federal healthcare program
Suppliers imposed with any of the above actions will have to maintain elevated surety bonds for three (3) years.
DMEPOS Surety Bond Exemptions are limited to the following:
Government operated DMEPOS who have already provided CMS with a comparable surety bond under state law
Private Practice Prosthetic and Orthotics personnel, IF:
The Personnel are state licensed AND,
The business is 100% solely operated by the owning supplier(s) (no employees), AND
Products are custom made by the owner(s), AND
The supplier is only billing Medicare for those products (not DME)
Note: DMEPOS suppliers should be aware that only state-licensed providers would qualify for an exemption, even in the event that the practice is not located in a state that offers state licensure. Practices in states that do not offer licensing are NOT exempt.
Contact Brunswick Companies today to discuss your DMEPOS Bond requirements.
