What is a Washington DMEPOS Bond?
Know what this bond is about and who should obtain it!
Any person who intends to become a recognized Durable Medical Equipment, Prosthetics, Orthodontics, and Supplies (DMEPOS) supplier in the State of Washington must submit a surety bond to the National Supplier Clearinghouse (NSC).
DMEPOS-Medicare Bond is required 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.
The DMEPOS bond is needed to safeguard the following:
- To avoid dishonest DME suppliers.
- To establish a better Medicare enrollment process to filter out legitimate DME suppliers.
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 such business in Washington
- The surety should pay the CMS any established claim within 30 days of receiving 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 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 type of bond?
STEP 1: Apply for the bond
You need to submit a bond application to us.
STEP 2: Underwriting
We will ask you for a couple of valuable information required for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
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.
- 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 on your DMEPOS bond? Call us now!