What is Utah DMEPOS Bond?
Know what this surety bond is about and who should obtain it!
A DMEPOS bond is a statutory requirement. Its purpose is to recover payments resulting from deceptive acts relating to billing committed by certain DME suppliers. DMEPOS stands for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies.
The surety bond will also help establish a better Medicare enrollment process by filtering out legitimate DME suppliers.
This surety bond is mandated by the Center for Medicare and Medicaid Services (CMS). Non-compliance of the supplier to this CMS requirement will result in the revocation of the supplier’s medical billing privileges.
What is the DMEPOS bond amount?
The surety bond’s minimum amount should be $50,000. The said bond amount is required for each National Provider Identifier (NPI).
One practice location requires one NPI. So for example, if you have ten practice locations, your bond amount will be $500,000.
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.
What are the DMEPOS bond conditions?
- The bond should be issued by a surety bond company that is authorized to conduct business in Utah such as Surety Bond Authority
- 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 bond should be submitted to the National Supplier Clearinghouse (NSC).
- 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 get a DMEPOS bond by submitting an application to us. Don’t worry; we will guide you through the whole process!
You will be asked to submit pertinent information needed for the underwriting process. This will include the following:
- Your financial history
- Your job performance history
- 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 start your DMEPOS bond? Contact us today!