What is a DMEPOS Bond?

The Centers for Medicare & Medicaid Services (CMS) requires Durable Medical Equipment, Prosthetic and Orthotic Suppliers (DMEPOS) to have a bond. .   New DMEPOS providers need to have this bond in place by May 4, 2009, while existing suppliers are required to file their bonds by October 2, 2009. The bond is required of those who bill Medicare for equipment they sell. In general they will need one bond per enrolled location.  

Who needs the bond:  
DMEPOS Suppliers.   Certain exceptions apply.  (including physicians, non physician practitioners selling equipment to their own patients, certain orthotics and prosthetic suppliers and government owned and run suppliers.) One bond is needed for each separate enrolled location.  See the National Supplier Clearing House website for further clarification.  

http://www.palmettogba.com/Palmetto/Providers.nsf/docsCat/National%20Supplier%20Clearinghouse~Supplier%20Enrollment~FAQs?OpenDocument&Start=1.9.1

What is the bond amount:  
The bond is $50,000 per enrolled location.  A bond in excess of $50,000 may be required if they have had past violations.  We are not a market for those with past violations.

What does it Guarantee:  
It guarantees unpaid claims, penalties, assessments imposed by the Center for Medicare and Medicaid Service (CMS).  It is intended to help prevent fraud and abuse of the Medicare system.

How will we underwrite:  
If an applicant needs one bond, we will require the application completed and signed, including:
1. The complete name and address for the applicant.  Please note this is the name the bond will be written in.
2. National Provider Identification (NPI) Number and National Provider Transaction Access Number (PTAN) - also known as the Medicare Legacy Number per enrolled location.
3. Personal information on each owner of the business.  This includes the name, address, social security number and verification whether he/she owns any real estate.
4. Business and personal indemnity of all owners and spouses.  
5. Information regarding how long they have been in business.

If the applicant has been in business for less than three years, does not own real estate, or has more than one enrolled location and therefore needs more than one bond, the following additional information is required:  

6. A business financial statement.
7. A personal financial statement from each owner.

Industry Standard Rates:

$10 per thousand
* Over 3 years in business
* Owns real estate
* Clean credit
This is approved in most states, we are waiting on approximately 10 states that take 60-90 days.

$5 per thousand
* State licensed and accredited
This rate is pending in most states, we anticipate 2-3 weeks for most states to approve, with approximately 10 states needing 60-90 days.

$20 per thousand
* All others

DMEPOS Online Application Form
Upon completion, print and fax to 501-834-7526
Someone will contact you soon.