GAIC DMEPOS Application Packet

Medicare Bond DMEPOS Surety Bond Businesses that are active or plan to participate in the Medicare Program as a supplier of durable medical equipment, prosthetics, orthotics or other medical supplies (DMEPOS), may be required to secure a bond in the amount of $50,000.  New suppliers seeking enrollment into the program are required to purchase the bond by May 4, 2009.  Existing Medicare DMEPOS suppliers must meet the bond requirement by October 2, 2009.

The Centers for Medicare & Medicaid Services (CMS) are requiring certain suppliers of durable medical equipment, prosthetics, orthotics and supplies to furnish CMS with a surety bond, which needs to be filed with the National Supplier Clearinghouse.  The Centers for Medicare & Medicaid Services can provide suppliers with additional information about the Medicare Program and bond requirement.

Surety Bond Application (Attached)

This Medicare surety bond is required for all providers with a National Provider Identifier (NPI) number, and every NPI number will be required to have at least a $50,000 surety bond.

Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies

The newly required Medicare (DMEPOS) surety bond is available nationwide for most credit situations starting as low as $200.00 per year depending on credit and other factors.

A supplier must submit the surety bond with its initial Medicare enrollment application or with its revalidation or reenrollment application. In addition, DMEPOS suppliers must submit a surety bond when a change of ownership occurs or when seeking to enroll a new location (unless the DMEPOS supplier is a sole proprietorship). 

The rule is effective March 3, 2009. 

Existing suppliers must comply with the surety bond requirement 9 months after enactment (October 2, 2009), while new enrolling suppliers or suppliers seeking to change ownership after the effective date must meet this requirement 120 days after the effective date (May 4, 2009).

Great American has been providing most types of surety bonds for more than 50 years.  Great American is:

  • licensed in all states and the District of Columbia
  • treasury-listed in excess of $128 million
  • rated "A" (Excellent by A.M. Best Company as of 3/27/2009)
  • financial size category of XII based on 12/31/2008 surplus
  • "superior service affiliate" of the National Association of Surety Bond Producers

 On January 2, 2009, the Centers for Medicare & Medicaid Services (CMS) published a final rule imposing surety bond requirements on certain Medicare suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS). Specifically, suppliers generally will be required to post a $50,000 surety bond from an authorized surety, unless (1) the supplier is a high-risk supplier, in which case the bond amount will be increased, or (2) the supplier qualifies for an exemption from the surety bond requirement. A separate surety bond will required for each NPI obtained for DMEPOS billing purposes. With regard to high-risk suppliers, CMS requires an elevated surety bond amount of $50,000 per occurrence of an adverse legal action (e.g., revocation of Medicare billing number; suspension of a health care license by a state licensing authority; revocation or suspension of accreditation; felony conviction; or federal or state health care program exclusion or debarment) within the 10 years preceding enrollment, revalidation, or reenrollment. CMS has adopted exceptions to the surety bond requirement for physicians and nonphysician practitioners (NPPs) furnishing the items to their own patients as part of their professional service. Likewise, CMS has created an exception for the provision of orthotics, prosthetics, and supplies by (1) state-licensed orthotic and prosthetic personnel and (2) state-licensed physical and occupational therapists providing such items to their own patients. This exception is limited to personnel and therapists operating in private practice; medical supply companies employing such personnel or therapists do not qualify for this exception. An exception also applies to suppliers operated by a federal, state, local, or tribal government agency if the supplier has provided CMS with a comparable surety bond under state law. Despite requests by commenters, CMS did not establish exceptions for pharmacies or for nursing facilities that bill for Medicare DMEPOS services provided to their own residents. A supplier must submit the surety bond with its initial Medicare enrollment application or with its revalidation or reenrollment application. In addition, DMEPOS suppliers must submit a surety bond when a change of ownership occurs or when seeking to enroll a new location (unless the DMEPOS supplier is a sole proprietorship). The rule is effective March 3, 2009. Existing suppliers must comply with the surety bond requirement 9 months after enactment (October 2, 2009), while new enrolling suppliers or suppliers seeking to change ownership after the effective date must meet this requirement 120 days after the effective date (May 4, 2009).

 

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