DMEPOS Bond Definition and Example

Who needs a DMEPOS bond

The bond is required by the Centers for Medicare & Medicaid Services (CMS) for any supplier that sells durable medical equipment, prosthetics, orthotics and supplies and bills Medicare or Medicaid. Each location with its own National Provider Identifier (NPI) must carry a separate bond.

Certain suppliers are exempt, including state-licensed orthotic/prosthetic personnel in private practice, physicians and non-physician practitioners who furnish DMEPOS as part of their professional services, and physical/occupational therapists who solely own the business and furnish items as part of their services.

What the bond covers

The bond protects Medicare/Medicaid from financial losses due to fraudulent billing and other unscrupulous business practices. If Medicare/Medicaid suffers a loss, they can file a claim against the bond to recover the amount owed.

Any fraudulent activity, whether intentional or not, is eligible for a claim. The surety investigates each claim. Approved claims are paid by the surety, but the supplier (you) remains ultimately liable and must reimburse the surety.

• Apply online with your business name, address and National Provider ID
• Receive a quote based on your credit and business profile
• Purchase your bond and file it with Medicare/Medicaid using the required form for your state