What is a Colorado DMEPOS bond?
Know what this bond is about and who should obtain it!
The Center for Medicare and Medicaid Services (CMS) requires suppliers of durable medical equipment, prosthetics, orthodontics, and other related supplies in Colorado to procure a surety bond.
The DMEPOS Surety Bond is created to safeguard the following:
- To avoid dishonest DME suppliers.
- To establish a better Medicare enrollment process to filter out legitimate DME suppliers.
Durable medical supplies include wheelchairs, crutches, canes, hospital beds, monitors, ventilators, oxygen, nebulizers – basically any equipment that aims to provide therapeutic benefits to the patient.
What is the DMEPOS bond amount?
The supplier is required to submit a surety bond with a minimum bond amount of $50,000 to the National Supplier Clearinghouse (NSC) for each National Provider Identifier (NPI).
One practice location requires one NPI. So for example, if you have ten practice areas, your bond amount will be $500,000.
If the supplier refuses to provide a surety bond, the medical billing privileges of the supplier will be revoked until a bond is acquired.
High-Risk Suppliers may be required to pay a much higher bond amount. If a high-risk supplier has experienced any legal action taken against him within ten years before enrollment or re-enrollment, the bond amount will be $50,000 for each incident.
If you want more information about the bond conditions for high-risk suppliers, talk to one of our professional bond agents today!
What are the DMEPOS bond conditions?
- The surety should pay the CMS any established claim within 30 days of receiving a written notice. The monetary compensation should be:
- The amount of any unpaid claim, plus accrued interest, for which the DMEPOS supplier is responsible.
- The amount of any unpaid claims, Civil Monetary Penalties (CMP), or assessments imposed by CMS or the OIG, plus accrued interest.
- The surety will be liable for any unpaid claims, CMPs, or assessments that occur during the bond’s term.
- CMS or its contractors may file a bond claim.
- The DMEPOS bond shall remain valid until canceled. In the case of cancellation, a 30-day notice is required.
How can I obtain this bond?
You can receive a DMEPOS bond by submitting an application to us. A professional surety company will guide you through the whole process!
You will be asked to submit pertinent information needed for the underwriting process. This will include your financial history, your job performance history, and your credit score. An underwriter will carefully evaluate all those.
Once done, we will issue the bond and send it to you immediately!
How does one enroll as DMEPOS supplier?
- Complete and submit the Medicare enrollment application form (CMS-855S) along with the necessary documents stated on the form to the NSC.
- Pay the necessary fees.
The NSC will review your application and verify if you have complied with the supplier standards. You will be notified once the application has been approved.
Ready to get started on your DMEPOS bond? Get a free quote now!