Medicare (DMEPOS) Bond
Any person or legal entity billing Medicare for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) are required to obtain a $50,000 surety bond. The DMEPOS surety bond is in place to protect Medicare and the public. The purpose of the surety bond is to:
- Reduce Medicare’s risk from fraudulent suppliers;
- Improve the enrollment process to ensure that only legitimate suppliers are and remain enrolled
- Ensure recovery of faulty payments that result from fraudulent or abusive billing practices; and
- Assure the public that they receive products and services that are reasonable and necessary from authentic suppliers.
The minimum required bond amount is $50,000, and can be increased by $50,000 for each location. The bond amount could also be higher for suppliers that only have one location if they have ever had an adverse action charged against them. For example, if a supplier’s billing privileges had every been revoked or suspended in the last 10 years, the supplier would have to secure a $100,000 (minimum bond amount of $50,000 plus an additional $50,000 for the adverse action).
The rate on the DMEPOS Medicare bond ranges anywhere from 0.5% to 1% of the bond amount for premium, based on approved credit. If credit is less than perfect, we can still approve you for a surety bond at a higher rate ranging anywhere from 5% to as high as 20% of the bond amount for premium.