Federal & Healthcare
DMEPOS Medicare Supplier Bond
A DMEPOS bond is the surety bond Medicare requires of suppliers of durable medical equipment, prosthetics, orthotics, and supplies before they can enroll and bill Medicare.
- Required by
- CMS (Medicare), 42 CFR 424.57(d)
- Bond amount
- $50,000 per NPI, set by 42 CFR 424.57(d); CMS may require an extra $50,000 for each adverse legal action in the prior 10 years
What this bond guarantees
The bond runs to CMS (Centers for Medicare & Medicaid Services). The surety must pay CMS, up to the bond amount, for unpaid Medicare overpayments plus interest and for civil money penalties or assessments, for events during the bond term. CMS gives written notice and the surety pays within 30 days.
Who needs it
- Durable medical equipment suppliers
- Prosthetics and orthotics suppliers not exempt
- Medical supply companies enrolling or revalidating with Medicare
What the underwriter looks at
- Owner credit
- Financial statements of the supplier
- Adverse legal actions or prior overpayments
- Number of locations (NPIs)
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do I need a separate bond for each location?
Yes, the base bond is per NPI. A new practice location needs its own $50,000 bond or a rider adding $50,000 to the existing bond.
Who is exempt?
Exemptions include government-operated suppliers with a comparable state bond, physicians and certain practitioners furnishing items only to their own patients, and certain solely owned orthotic, prosthetic, and therapy practices. A supplier that loses its exemption has 60 days to get a bond.