A Medicare surety bond is required of DMEPOS (durable medical equipment, prosthetics, orthotics and supplies) suppliers who accept Medicare payments for those products. A separate $50,000 bond is required by the Centers for Medicare & Medicaid Services (CMS) for each National Provider Identifier (NPI) obtained for Medicare billing purposes. These bonds help protect against billing fraud and abuse.
Typically, Medicare surety bonds renew annually and stay in place as long as you keep your license. The annual premium is often only 0.5% of the bond amount ($250) but may be higher in some circumstances. The underwriting is typically a simple one-page application used to soft pull your credit, although occasionally additional information may be required.
Medicare surety bonds are sometimes also called a:
- DMEPOS surety bond
- Durable medical equipment DME surety bond
- CMS surety bond
- Centers for Medicare Medicaid services surety bond
- Medicaid surety bond
- Pharmacy surety bond