Centers Medicare Medicaid Services Surety Bond

A Centers Medicare Medicaid Services Surety Bond is a license and permit surety bond required by the Centers for Medicare & Medicaid Services (CMS)  for all suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS).  Suppliers generally will be required to post a $50,000 Centers Medicare Medicaid Services surety bond.  Separate Centers Medicare Medicaid Services surety bonds are required for each National Provider Identifier (NPI) obtained for DMEPOS billing purposes.

A Centers Medicare Medicaid Services Surety Bond may be referred to by different names:

Purposes of a Centers Medicare Medicaid Services Surety Bond:

  • limit the Medicare program risk to fraudulent suppliers
  • enhance the legitimacy of the Medicare enrollment process and current suppliers
  • ensure the Medicare program is indemnified for erroneous payments resulting from fraudulent or abusive supplier billing practices
  • ensure Medicare beneficiaries receive reasonable products and services from legitimate suppliers

The DMEPOS surety bond requirement became a final rule in the Federal Register on January 2, 2009. Certain suppliers may be exempt from the new requirement.

See also “Dentists must comply with new DMEPOS bond rules.”