What Is a Minnesota DMEPOS Surety Bond?
If you want to provide or supply durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) through the Medicaid program in Minnesota, you have to be enrolled with the Minnesota Health Care Programs (MHCP). As a part of the process, you need to obtain a DMEPOS surety bond to meet the legal requirements.
Your surety bond ensures your compliance with applicable state laws. It can provide a reimbursement to harmed parties via a bond claim in case you transgress from your legal obligations.
This bond works like a contract between three parties. The principal is your business which provides or supplies DMEPOS. The Minnesota Department of Human Services is the obligee requiring the bond. The surety backs your company financially by providing the bond.
Questions about Medicare Bonds Dmepos Bonds
Who has to get a DMEPOS surety bond?
Any entity that would like to operate as a supplier of DMEPOS equipment and supplies in Minnesota and bill the Medicaid program needs to get a MHCP enrollment. You need to post a $50,000 DMEPOS surety bond as a part of the initial enrollment process
The bond ensures your compliance with Minnesota Statutes, Chapter 256B. After the initial enrollment, he bond amount varies depending on the total Medicaid payments for DMEPOS services that you’ve received.
What is the cost of a DMEPOS bond in Minnesota?
When you first enroll as a MInnesota DMEPOS provider, you have to obtain a $50,000 bond. Afterwards, the bond amount is set on the basis of the Medicaid payments for DMEPOS services for the last calendar year. If the amount is below $300,000, the bond requirement is $50,000. If it is above that amount, the bond is $100,000.
This is referred to as the bond amount, which is different from the bond premium that you have to pay. It is only a fraction of the required amount. For DMEPOS surety bonds, the common rates are about 1%-5% for providers with stable finances.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Initial enrollment/Medicaid payments below $300,000||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
|Medicaid payments above $300,000||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
Your surety bond cost is determined after considering your personal credit score, business finances, and assets and liquidity. The surety you apply with needs to assess the level of risk when providing you with a bond. The stronger your overall profile is, the less you’re likely to pay for the bond.
What if I have problematic finances?
You can obtain the bond you need with Lance Surety Bonds even if you have low credit scores, tax liens, bankruptcies, or civil judgements. Our Bad Credit Surety Bonds program is a great option for you.
The bonding rates are often between 5% to 10% in order to compensate for the increased risk in the bonding. We work with a number of A-rated, T-listed surety companies, so we can still select a top bond price for your particular situation.
How do I obtain this surety bond?
You can refer to our How to Get Bonded page if you’d like to learn more details about the bonding process. Have questions? Reach us at (877) 514-5146 and our bonding specialists will be happy to help.
What happens if I get a bond claim?
The bond you obtain is not a protection for your business, but a safety measure for state authorities. It ensures your compliance with Minnesota Statute, Chapter 256B and any other applicable rules. If you fail to deliver the contracted services for which you receive Medicaid payments, or in other way transgress from the law, you can get a bond claim
On proven claims, you are liable to repay damages up to the penal sum of your bond. Your surety may step in to pay the costs at first, but you have to reimburse it. This means that bond claims are a financial threat that is worth avoiding.