A Durable Medical Equipment (DME) surety bond is required of suppliers of durable medical equipment who accept Medicare or Medicaid payments for DMEPOS products in order to help protect against billing fraud & abuse. The most common DME surety bond is required by the Centers for Medicare & Medicaid Services (CMS). A separate $50,000 bond is required for each National Provider Identifier (NPI) obtained for DMEPOS billing purposes.
Some states have also required a DME bond in the past, such as Florida, Texas and Minnesota. The bond amount has varied by state and there are still many states with no bond requirement. Since state regulations can frequently change, you should check with the state to see if a bond is required for your business. If your state does not require a bond then there is no reason to get one.
The annual premium rates are usually just 0.5% – 2% of the bond amount. The bond renews each year as long as you keep your license. The underwriting is typically a simple one-page application used to soft pull your credit, although occasionally additional information may be required.
Durable medical equipment DME surety bonds are sometimes also called a:
- DMEPOS surety bond
- Medicare surety bond
- CMS surety bond
- Centers for Medicare Medicaid services surety bond
- Medicaid surety bond
- Pharmacy surety bond