A Pharmacy surety bond is required of pharmacies who accept Medicare payments for durable medical equipment, prosthetics, orthotics and supplies. These pharmacy surety bonds are different than pharmaceutical wholesaler surety bonds, prescription drug wholesale surety bonds and wholesale drug distributor surety bonds.
The purpose of this bond is to help protect against billing fraud and abuse. 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.
Typically, pharmacy 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.
Pharmacy surety bonds are sometimes also called a:
- DMEPOS surety bond
- Medicare surety bond
- Durable medical equipment DME surety bond
- CMS surety bond
- Centers for Medicare Medicaid services surety bond
- Medicaid surety bond