Durable Medical Equipment, Prosthetics and Orthotics Suppliers (DMEPOS) Bond

What is a DMEPOS Bond? (AKA a Medicare Bond or Medicaid Bond)

Organizations supplying durable medical equipment, prosthetics and orthotics supplies (DMEPOS) must purchase a surety bond prior to applying for Centers of Medicare and Medicaid Services (CMS) accreditation and Medicare billing enrollment. This bond requirement is in place to reduce Medicare/Medicaid billing fraud and abuse.

As a DME provider, the surety bond serves as your guarantee to the CMS that you will abide by the law and not participate in malpractice. If you fail to follow the rules or operate unethically, a claim can be made against your bond. As an example, selling unnecessary medical equipment to patients and billing Medicare may result in a claim.

How much does a DMEPOS Surety Bond cost?

The CMS requires all suppliers of DMEPOS to secure a surety bond in the amount of $50,000, plus an additional $50,000 for each National Provider Identifier (NPI) they utilize. When calculating the bond premium (the cost of the DMEPOS Bond), there are a few factors to take into account. This includes the amount of the bond, term length and personal credit of every owner with a 10% or more ownership stake in the business.

With good credit and approval, your premium for the bond may cost as low as 0.5% – 5% of the bond amount. You may be eligible for a $50,000 DMEPOS starting as low as $250 in premium.

What if I have poor credit? Am I still eligible for a bond?

If you don’t have great credit, you may still qualify for a DMEPOS Bond. Our Surety Solutions, A Gallagher Company team partners with several leading surety companies to ensure you receive the best quotes for your bond. However, due to the higher risk involved, non-standard rates for DMEPOS Bonds usually start at around 5% of the bond amount.

Don’t let bad credit prevent you from seeking a bond quote. Our credit pulls are non-adverse, so they do not negatively affect your score. Get your DMEPOS Bond quote today!

How do I become an accredited DMEPOS provider?

Step 1: Apply with an approved accreditation organization

Suppliers of DMEPOS must seek accreditation through one of the ten accreditation organizations used by the CMS. The organization verifies your business achieves the DMEPOS Quality Standards through periodic visits.

Step 2: Get an NPI for each service location

Apply for your NPIs through the National Plan & Provider Enumeration System (NPPES). If you believe you have already done so, you may search the NPI Registry to confirm.

Step 3: Fill out and submit the Medicare Provider Enrollment, Chain and Ownership System (PECOS) enrollment application and pay application fee

The application can be submitted online through PECOS here. Payment for the application fee can also be made online.

Step 4: Connect with the National Supplier Clearinghouse (NSC)

Contact the NSC to follow up on your enrollment status.

Step 5: Purchase and submit a surety bond to the NSC

Submit your $50,000 surety bond to the NSC. You may need to submit a bond with a larger amount if your business has multiple NPIs.

Who is exempt from the DMEPOS Bond requirements?

Your business may be exempt from the DMEPOS Surety Bond requirement. Physical and occupational therapists in private practices in the following situations are exempt:

  • The physical or occupational therapist solely owns the business
  • The physical or occupational therapist only provides DMEPOS to their own patients.
  • The business only bills Medicare or Medicaid for orthotics, prosthetics and supplies.

Nursing homes and pharmacies billing Medicare/Medicaid for DMEPOS are not exempt from the surety bond requirement.

Where do I get the DMEPOS bond form?

When you purchase your DMEPOS Bond through Surety Solutions, A Gallagher Company, we’ll send you the bond form filled out with the information you provided on our online application. Start the process of getting your DMEPOS Bond by submitting our quick and easy online application.

Let our team of surety bond professionals know if you have any questions. Contact us here or send an email to info@suretysolutions.com. We look forward to issuing your DMEPOS Surety Bond.

Additional Resources

Dentists are no longer exempt from DMEPOS Bond requirments.

Read our blog post to find out what happens if an individual makes a claim against your bond.

Visit the Centers of Medicare and Medicaid Services (CMS) for instructions on becoming an accredited DMEPOS provider.

We can help you with other types of surety bonds

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