A DMEPOS 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 DMEPOS surety bond. Separate DMEPOS surety bonds are required for each National Provider Identifier (NPI) obtained for DMEPOS billing purposes.
A DMEPOS Surety Bond may be referred to by different names, depending on the state:
- Pharmacy Surety Bond
- Medicaid Surety Bond
- Medicare Surety Bond
- Centers Medicare Medicaid Services Surety Bond
- CMS Surety Bond
- Durable Medical Equipment Surety Bond
Purposes of a DMEPOS 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.”