Center for Medicare and Medicaid Services (CMS) takes measures to fight fraud in California and Florida

Category: Uncategorized
Published: Jan 8, 2009
In reaction to the significant amount of medical equipment fraud in recent times, the Center for Medicare and Medicaid Services (CMS) just announced that it has taken back billing privileges of over 1,000 suppliers of medical equipment in two states:CaliforniaandFlorida.

Most affected suppliers were operating in Southern Cal andSouth Florida.  CMS has also halted payments to a number of “home-health” agencies operating in and around Miami-Dade.  Additionally, the CMS has mandated that some medical equipment suppliers must purchase/post “surety bonds” of $50,000 and up.

Existing suppliers must post the required surety bonds no later than Oct 2, 2009.  New suppliers in the process of enrolling have until May 4, 2009 to post the bonds.  It is said that CMS is requiring these surety bonds in order to lower the risk that Medicare must face as a result of fraudulent equipment suppliers.


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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.