What is a California DMEPOS Bond?

In California and across the country, most suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) are required to purchase a $50,000 surety bond to be able to bill Medicare.

Since they are required by the Centers for Medicare and Medicaid Services (CMS) to prevent medical billing fraud and other unlawful acts, DMEPOS bonds are known as Medicare Bonds or Medicaid Bonds. 

However, these bonds are not the same as Medicaid Provider Bonds or Pharmacy Wholesale Bonds.

Who Needs a California DMEPOS Bond?

A DMEPOS-Medicare Bond is for suppliers who provide patients with durable medical equipment, prosthetics, orthotics, and other supplies. This bond is necessary before the supplier can bill Medicare, a federal health insurance program designed for people over the age of 65.

DMEPOS suppliers must maintain this $50,000 coverage for each National Provider Identifier (NPI) they maintain. An NPI is the unique 10-digit code that is used to identify healthcare providers in a standard way throughout the industry. Therefore, if a DMEPOS supplier manages 10 locations, they will be required to obtain a $500,000 bond.

Why Do I Need a California DMEPOS Bond?

The DMEPOS bond was created to reduce the occurrences of Medicare billing fraud. It was established in 2009 by the Centers for Medicare and Medicaid Services (CMS). The DMEPOS bond was designed with the following goals:

• Permit only legitimate DMEPOS suppliers to enroll and participate in the Medicare program
• Reduce the risk of Medicare fraud
• Guarantee that the Medicare program is reimbursed for any losses resulting from fraudulent and other illegal business practices

How Much Does a California DMEPOS Bond Cost?

The CMS requires DMEPOS suppliers to carry the $50,000 bond for each NPI they maintain. Therefore, the cost of a DMEPOS bond can vary widely. Additionally, DMEPOS bonds are subject to underwriting and will vary depending on the credit score of the company owners. Often, the rate will range between .5 – 2%.

Get Started Today!

To bill Medicare for your durable medical equipment, prosthetics, orthotics, and other supplies, you must first secure a DMEPOS bond. Don’t delay your application. Begin by getting your quote today.