What is a Texas Durable Medical Equipment, Prosthetics, Orthodontics, and Supplies (DMEPOS) Bond

Learn about the DMEPOS Bond and if this bond is for you!

Texas DMEPOS BondBefore you can be a supplier of durable medical equipment, prosthetics, orthodontics, and other related supplies in Texas, the Center for Medicare and Medicaid Services (CMS) – through section 1834 of the Social Security Act – will require you to obtain a DMEPOS-Medicare Bond.

The requirement is mandated by section 4312 of the Balanced Budget Act of 1997.

The Texas DMEPOS 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.
  • For the Medicare program to recover false payments due to abusive billing practices by allowing contractors to acquire payments from a surety.
  • Medicare beneficiaries will receive the necessary products from legitimate DME suppliers.

The supplier is required to submit a surety bond with a minimum bond rate of $50,000 to the National Supplier Clearinghouse (NSC).

If the supplier refuses to provide a surety bond, the Medical billing privileges of the supplier will be revoked until a bond is acquired. The supplier cannot seek payment from beneficiaries for the items provided during this time.

As part of the bond condition, high-risk suppliers will be required to pay a bond amount higher than $50,000. If a high-risk supplier has experienced any legal action taken against him within 10 years before enrollment or re-enrollment, the bond amount will be $50,000 for each incident.


Validity of the bond

As per CMS’ provision, the bond shall remain continuous until canceled. The surety bond company may cancel the bond upon 30 days of notice.


How can I obtain this bond?

To secure this type of bond, you must seek the assistance of a surety bond company such as Surety Bond Authority.

First, you need to submit a bond application.

Once the application is received, one of our expert surety bond agents will guide you through the whole process – from application until submission.

An underwriter will then evaluate your financial strength, job performance history, and your credit score.

Once the prequalification process is fulfilled, we will execute the bond and send it to you!


Who are eligible to become a DMEPOS supplier?

Any licensed individual or entity such as the following:

  • Nurses
  • Ambulatory Surgical Center
  • Department Store
  • Hospital
  • Indian Health Service or Tribal Facility
  • Medical Supply Company
  • Nursing Facility (other)
  • Optician
  • Orthotics Personnel
  • Pedorthic Personnel
  • Pharmacy
  • Physical Therapist
  • Physician, including Dentist and Optometrist
  • Prosthetics Personnel
  • Rehabilitation Agency
  • Skilled Nursing Facility
  • Occupational Therapist
  • Sleep Laboratory/Medicine
  • Sports Medicine


How does one enroll as a DMEPOS supplier?

Complete and submit the Medicare enrollment application form (CMS-855S) along with the necessary documents stated on the form to the NSC.

The NSC will review your application and verify if you have complied with the supplier standards. You will be notified if the application has been approved.

Ready to get bonded? Call us now!

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