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DMEPOS Medicare Bond: The $50,000 CMS Surety Bond Guide

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DMEPOS Medicare Bond Quick Facts:

  • Who needs it? Most DMEPOS suppliers billing Medicare.
  • Bond amount: $50,000 per NPI (base amount). Higher if certain adverse legal actions apply.
  • Multiple locations: One combined bond can cover multiple NPIs (aggregate of $50,000 each).
  • Cost to you: $500 per year for credit scores of 700 or higher. Higher premiums apply for lower credit.
  • When required: Initial enrollment, revalidation, new locations, and changes of ownership.
  • Bond term: Continuous, with annual premium paid upfront.

Last updated: April 20, 2026

If you supply durable medical equipment, prosthetics, orthotics, or supplies (DMEPOS) and bill Medicare, CMS requires you to post a $50,000 surety bond per National Provider Identifier (NPI). Without it, you cannot enroll, revalidate, or keep your Medicare billing privileges active.

 

If you already know you need a DMEPOS Medicare bond and want to move fast, call us at 800-333-7800 or contact us online. Most bonds are issued the same day.

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How Much Does a DMEPOS Medicare Bond Cost?

The bond amount is fixed by CMS at $50,000 per NPI. That is the coverage limit, not what you pay. What you pay is the annual premium, and your premium depends almost entirely on your personal credit score.

 

Here is what to expect:

  • Credit score 700 or higher: $500 per year, firm quote. This is the standard rate for qualified applicants and covers the full $50,000 bond for one NPI.
  • Credit score 650 to 699: Slightly higher premium, typically a small percentage of the bond amount.
  • Credit score below 650: Higher premium still. The weaker the credit, the higher the rate.
  • Significant credit challenges: Approval may require additional underwriting review. In some cases, we will tell you upfront if we cannot secure approval rather than waste your time.

The premium is paid once per year, upfront. DMEPOS bonds are not billed monthly.

 

If you have multiple NPIs or locations, we can quote a combined bond that covers the full $50,000 for each NPI. Call us and we will walk you through the math for your specific situation.

How to Get Your DMEPOS Bond

The process is straightforward and most bonds are issued the same day:

  1. Apply: Contact us by phone or online and we will send you the application.
  2. Return the application: Email it back to us once complete.
  3. Credit check: We run a soft credit check. Good credit gets you our best rate.
  4. Bond issued: Once approved, your bond is issued and sent to you for submission to the National Supplier Clearinghouse (NSC) with your CMS-855S form.

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DMEPOS Surety Bond Form (CMS-855S)

The DMEPOS Surety Bond Form is the official CMS document required for all suppliers of durable medical equipment, prosthetics, orthotics, and supplies. You must submit it as part of your Medicare enrollment or revalidation to verify compliance with CMS bonding requirements.

 

You can download the current form below, free of charge, to review or provide to your surety bond provider.

FREE Bond Form

DMEPOS Bond Snippet

FREE Bond Form:  Download the form and fill out the items highlighted in yellow. 

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What is DMEPOS?

DMEPOS stands for durable medical equipment, prosthetics, orthotics, and supplies. These are the types of equipment Medicare beneficiaries use at home to manage medical conditions.

 

Medicare covers Durable Medical Equipment (DME) that meets four criteria:

  • Is durable and can withstand repeated use
  • Serves a medical purpose
  • Is appropriate for use in the home
  • Is likely to last three or more years

Common examples include home blood glucose monitors, CPAP and other positive airway pressure devices, nebulizers, power mobility devices, home oxygen therapy equipment, ventilators, external infusion pumps, enteral and parenteral nutrition supplies, lower-limb prosthetics, and therapeutic shoes for people with diabetes.

What is a DMEPOS Medicare Bond?

A DMEPOS Medicare bond is a federal surety bond required by the Centers for Medicare & Medicaid Services (CMS) before any supplier can enroll for or maintain Medicare billing privileges. The bond guarantees that the supplier will follow CMS rules and that CMS will be compensated if the supplier commits fraud, submits false claims, or fails to repay overpayments.

 

There are three parties to every DMEPOS bond:

  • Principal: The DMEPOS supplier (you).
  • Obligee: The Centers for Medicare & Medicaid Services (CMS) and its designated contractor.
  • Surety: The A-rated, T-listed insurance company that issues the bond. Surety Bond Authority is your licensed agent and places the bond with the surety company on your behalf.

The bond is a continuous instrument, meaning it remains in force until it is cancelled or replaced. The premium, however, is billed annually.

 

CMS authority for the bond comes from Section 424.57 of 42 CFR, which also defines supplier standards and the bond’s terms.

Who Needs a DMEPOS Bond?

Every DMEPOS supplier billing Medicare needs this bond. Specifically, you need one if any of these apply:

  • You are enrolling in Medicare as a DMEPOS supplier for the first time
  • You are going through a change of ownership
  • You are responding to a revalidation or reenrollment request
  • You are acquiring another DMEPOS supplier through a purchase or transfer of assets
  • You are enrolling a new practice location
  • You are an existing Medicare-enrolled DMEPOS supplier and need a bond for each NPI

Per 42 CFR 424.57, a DMEPOS supplier is any entity or individual (including a physician or Part A provider) that sells or rents Part B covered DMEPOS items to Medicare beneficiaries and meets the DMEPOS supplier standards.

DMEPOS Bond Exemptions

A small group of suppliers is exempt from the DMEPOS bond requirement. You may be exempt if you fall into one of these categories:

  • Government-operated DMEPOS suppliers that have provided CMS with a comparable surety bond under state law.
  • State-licensed orthotic and prosthetic personnel in private practice who make custom-made orthotics and prosthetics, provided the business is solely owned and operated by the orthotic/prosthetic professional and the business only bills for orthotics, prosthetics, and supplies.
  • Physicians and non-physician practitioners as defined in section 1842(b)(18) of the Social Security Act, if the items are furnished only to their own patients.
  • Physical and occupational therapists in private practice, if the business is solely owned and operated by the therapist, the items are furnished only to the therapist’s own patients as part of their professional service, and the business only bills for orthotics, prosthetics, and supplies.

If you think you might qualify for an exemption, confirm with your Medicare enrollment contractor before skipping the bond. Getting this wrong means revoked billing privileges.

What is an Elevated DMEPOS Bond?

CMS can require a bond amount higher than the standard $50,000 if a supplier has a history of certain adverse legal actions. Under 42 CFR 424.57, CMS can add $50,000 increments to the base bond amount for each covered adverse action within the past 10 years. Examples of what can trigger an elevated bond include unpaid Medicare overpayments, revocation of billing privileges, or criminal convictions related to healthcare programs.

 

If CMS has notified you that you need an elevated bond, call us at 800-333-7800. We place elevated DMEPOS bonds regularly and we will tell you upfront what the premium looks like for your situation.

How the Bond Works if CMS Files a Claim

A DMEPOS bond provides financial protection to CMS in two situations:

  • The supplier fails to meet their Medicare obligations
  • CMS identifies unpaid claims, civil money penalties (CMPs), or assessments against the supplier

If CMS determines the supplier has violated the bond’s conditions, CMS sends a written notice to the surety with evidence of the violation. The surety conducts its own investigation. If the claim is valid, the surety must pay CMS within 30 days of receiving the notice, up to the penal sum of the bond. Payment covers:

  1. Any unpaid claim amount plus accrued interest for which the supplier is responsible.
  2. Any unpaid CMPs or assessments imposed by CMS or OIG on the supplier, plus accrued interest.

Once the surety pays, the supplier is contractually obligated under the indemnity agreement to reimburse the surety for the full amount paid. This is why good credit matters on the front end. The surety is only willing to take on this risk when the applicant is likely to honor the indemnity agreement.

Can a DMEPOS Bond Be Cancelled?

Yes. If you plan to cancel your bond, you must provide written notice to the CMS contractor at least 30 days before the effective cancellation date.

Here is the important part: once a DMEPOS bond is cancelled, or if there is any lapse in coverage, your Medicare billing privileges are revoked unless you submit a replacement bond before the cancellation date. A lapsed bond is one of the fastest ways to lose your billing privileges, which is why we strongly recommend replacing your bond before the old one ends rather than after.

Why CMS Requires This Bond

Medicare fraud, abuse, and improper billing in the DMEPOS category have historically been a significant concern for CMS. The DMEPOS surety bond requirement was established under Section 4312 of the Balanced Budget Act of 1997 and took effect in October 2009. Its purpose is to:

  • Filter out illegitimate DMEPOS suppliers at the enrollment and revalidation stages
  • Give CMS a way to recover erroneous payments from a financially backed source when fraud or abuse occurs
  • Ensure Medicare beneficiaries receive reasonable and necessary products and services from legitimate suppliers

For you as the supplier, the bond is both the price of admission to Medicare billing and a reminder that CMS has a direct financial recourse if something goes wrong.

DMEPOS Medicare Bond FAQs

How much is a DMEPOS Medicare bond?

The bond amount is fixed by CMS at $50,000 per NPI. The premium you pay depends on your credit. For credit scores of 700 or higher, our firm rate is $500 per year. Premiums are higher for lower credit scores.

Do I need a separate bond for each location?

You need $50,000 of coverage per NPI. You can either purchase separate bonds for each NPI, or use one blanket bond with riders that total the required coverage across all NPIs and locations.

When is the DMEPOS bond required?

At initial Medicare enrollment, during revalidation, at change of ownership, and when adding new locations. You submit the bond to your Medicare enrollment contractor (NPE) along with your CMS-855S form.

What is an “elevated” DMEPOS bond?

If you have certain adverse legal actions within the past 10 years, CMS can require additional $50,000 increments on top of the base $50,000 bond. Call us if CMS has notified you that you need an elevated bond.

What happens if my bond is cancelled or lapses?

Cancellation without a replacement bond triggers revocation of your Medicare billing privileges. Always provide a new bond before the effective cancellation date of the existing one. For more detail, see our guide on what happens if your DMEPOS bond is denied or cancelled.

Who is exempt from the DMEPOS bond?

Government-operated suppliers with a comparable state bond, certain private-practice orthotic and prosthetic professionals, physicians and non-physician practitioners furnishing items only to their own patients, and physical and occupational therapists meeting specific criteria. Always confirm with your Medicare enrollment contractor.

Is the DMEPOS bond a one-time payment or ongoing?

The bond itself is a continuous instrument. The premium is paid annually, upfront. There are no monthly payments on surety bonds.

How long does it take to get a DMEPOS bond?

For applicants with good credit, most DMEPOS bonds are issued the same day the application is returned. More complex cases, including elevated bonds or applicants with credit challenges, may take an extra day or two for underwriting.

How do I apply for a DMEPOS Medicare bond?

Call us at 800-333-7800 or contact us online. We will email you an application, run a soft credit check when you return it, and get you quoted quickly.

Related DMEPOS Resources

Ready to Get Your DMEPOS Medicare Bond?

Surety Bond Authority has been writing surety bonds since 1971. We place DMEPOS Medicare bonds for suppliers in all 50 states, and most bonds are issued the same day for applicants with qualifying credit. If your credit is strong, your annual premium is a firm $500. If it is not, we will still work hard to find you the best rate available.

 

Call us at 800-333-7800 or contact us online to get started.

Table of Contents: Guide

    DMEPOS Bonds by State

    Find your state’s DMEPOS Medicare Bond requirements and get bonded fast.

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