How do I obtain a DMEPOS-Medicare Surety Bond?
Our company provides fast, professional surety bond services for all types of surety bonds. The application process is amazingly simple. We would first email you an application. Once you have returned the application to us, we will begin processing your bond. Usually, we can complete the process in one day. Feel free to contact us by email or phone.
How much is a DMEPOS Bond?
The required bond amount or liability coverage is $50,000. An elevated bond amount may be required by the CMS in some cases.
What is my cost to purchase a DMEPOS-Medicare Surety Bond?
The cost of this bond is based on your credit score. If your credit is excellent, you will usually pay 1% of the bond amount. As your credit score declines, your cost increases.
What is DMEPOS?
A DMEPOS surety bond is also known as a Medicare surety bond. The acronym stands for “durable medical equipment, prosthetics, orthotics and supplies”. These are types of equipment that patients need at home due to certain medical conditions.
Medicare covers Durable Medical Equipment (DME) that has the following factors:
- Is durable – can withstand repeated use
- Serves a medical purpose
- Is appropriate for use in the home and can also be used outside of the patient’s home
- Likely to last for three or more years
Some examples of such types of equipment are as follows:
- Home Blood Glucose Monitor
- Therapeutic Shoes for Persons with Diabetes
- Power Mobility Device
- Home Oxygen Therapy
- Positive Airway Pressure Devices
- External Infusion Pumps
- Respiratory Assist Devices
- Immunosuppressive Drugs
- Enteral Nutritional Therapy
- Parenteral Nutritional Therapy
- Lower Limb Prosthesis
What is a DMEPOS (Medicare) Bond?
It is a federal surety bond required of DMEPOS suppliers. A bond must be procured before the supplier is allowed to enroll for and maintain billing privileges.
There are three (3) parties to this bond:
- Principal – DMEPOS supplier (you)
- Obligee – Centers for Medicare and Medicaid Services (CMS) Contractor
- Surety – Surety Bond Authority (us)
The Centers for Medicare and Medicaid Services (CMS) requires this type of surety bond to ensure the fulfillment of obligations of the DMEPOS supplier to the CMS in accordance with mutual terms.
Through this surety bond, the Surety (Surety Bond Authority) will provide the financial guarantee to the CMS along with the DMEPOS supplier.
The term of a DMEPOS bond is continuous.
Who needs to submit a DMEPOS Bond?
DMEPOS suppliers are required to submit this type of surety bond.
As defined in Section 424.57 of 42 CFR, a DMEPOS supplier is “an entity or individual, including a physician or Part A provider, that sells or rents Part B covered DMEPOS items to Medicare beneficiaries and that meets the DMEPOS supplier standards.”
A Part A provider is a hospital, skilled nursing facility, home health agency, hospice or comprehensive outpatient rehabilitation facility, or a related organization.
Part B covered DMEPOS items are those that have been prescribed by the patient’s Primary Care Provider (PCP).
Below are the different types of DMEPOS suppliers who are required to submit a DMEPOS Medicare Bond:
- A DMEPOS supplier enrolling in the Medicare program for the first time
- A DMEPOS supplier making a change in ownership
- A DMEPOS supplier responding to a revalidation or reenrollment request
- A supplier who is applying to become an enrolled DMEPOS supplier through a purchase or transfer of assets or ownership interest
- A DMEPOS supplier enrolling a new practice location
- Enrolled DMEPOS suppliers. Each Medicare-enrolled DMEPOS supplier must obtain a surety bond for each National Provider Identifier (NPI), and the bond must be submitted to the National Supplier Clearinghouse (NSC).