What is a DMEPOS Bond?
DMEPOS Bonds are required by the Centers for Medicare and Medicaid Services (CMS) of all providers and suppliers of “durable medical equipment, prosthetics, orthotics and suppliers”, if they intend to bill Medicare for the equipment.
This $50,000 bond was put in place to offer legal protection against malpractice or fraud committed by bonded physicians or medical practitioners. Our agency has a variety of programs designed to get all types of DMEPOS providers and suppliers approved at excellent rates.
Questions about Medicare Bonds Dmepos Bonds in Michigan
How much does a Medicare Bond cost?
Annual premium amounts are determined based on owner personal credit. Providers with stellar credit may be eligible for standard market rates, which range from 1% to 3% of the bond amount ($500 to $1,500). If the principal has a low credit score, or derogatory items on their credit report, annual premium typically ranges between 5% to 12% of the bond amount.
Can I get a DMEPOS Bond if I have bad credit?
Yes. While many sureties only offer quotes to customers with stellar credit, Lance Surety has a variety of Medicare Bond programs that allows us to approve over 99% of applicants instantly through our online application. Your annual premium will depend on your individual credit profile, but we’re able to offer very aggressive rates.
How do Medicare (DMEPOS) Bonds work?
Any DMEPOS supplier or provider that intends to bill Medicare for equipment must get bonded with a surety company. The bond is posted with the CMS (the obligee) to ensure compliance with their regulations. DMEPOS bonds guarantee that all claims submitted to Medicare are legitimate, and help cut down on fraudulent behavior. In exchange for annual premium, the surety provides a financial guarantee to the CMS that any potential claims will be rectified. If the surety ends up paying out on a claim, the bonded supplier or provider will be required to reimburse them for the cost of the claim.
Will a DMEPOS Bond cover multiple locations?
Not necessarily. A bond must be purchased for every location that has it’s own National Provider Identifier (NPI). If you have multiple locations with different NPIs, and would like to cut down on additional paperwork, you may be able to have all of your locations listed on the same bond form. This can be achieved by having the surety issue one single bond with an addendum listing out each location.
What information must be provided for Medicare Bonds?
In order to receive a quote, basic information regarding the company, owners and type of bond required must be provided. However, before the original DMEPOS bond can be created, applicants must be provide the following to the surety company:
- Principal Legal Name
- Address of DMEPOS Supplier
- Principal Tax ID No. (TIN)
- National Provider I.D. (NPI)
- NSC/PTAN No. (if supplier has one)
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!