DMEPOS Surety Bond

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:

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.”