DMEPOS Medicare Bond
A DMEPOS surety bond is a type of bond that is extremely important to the medical industry and are well known to medical professionals and people involved in Medicare. Also known as Medicare Bonds, Medicaid Bonds or CMS Bonds (Centers for Medicare and Medicaid Services), these bonds are required of certain suppliers as a condition of conducting business with Medicare agencies.
What does DMEPOS stand for?
The acronym DMEPOS stands for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies, and vendors offering these medical goods for sale would be required to have DMEPOS bond before selling to Medicare outlets. Since 2009, this requirement has been in place, and other than certain exceptional cases, all suppliers dealing with these kinds of goods must have the DMEPOS bond, or they will be considered to be in violation of a Federal Register directive.
What is a DMEPOS bond?
The purpose of the DMEPOS bond is to ensure that Medicare patients receive quality products and services from legally recognized vendors, and there is no misrepresentation involved. It also protects the Medicare program itself from the risk of doing business with illegitimate suppliers, especially in the area of having to make payments to such vendors, when they have not provided products meeting specific criteria for quality.
In the past, there were also cases where suppliers significantly over-billed Medicare for products or services before the fraud was discovered. To discourage these illegal activities, companies wishing to sell products and services to the Medicare program must first post a $50,000 DMEPOS bond, as a guarantee of dealing in good faith.
Who needs to get a DMEPOS bond?
Any company wishing to sell products such as those referred to in the acronym name (durable medical equipment, prosthetics, and orthotics) must purchase a bond before the Medicare program can do business with them. In addition, any pharmaceutical company selling to Medicare would have to purchase the same kind of bond, as insurance against low-quality products or inability to fulfill orders which would be agreed to. In some cases, personal care agencies must also post the DMEPOS bond before Medicare will hire them to provide care for patients in the program.
Why are DMEPOS bonds important?
DMEPOS bonds significantly limit the exposure of Medicare to illegitimate manufacturers and suppliers, whose sole intent is to commit fraud and gain access to Medicare program funds. The bonds serve to drastically reduce the number of malpractice and fraud cases in Medicare, and also ensure that the program is compensated in cases where fraud or malpractice has been involved.
If Medicare had to absorb losses from all those incidents, it would severely cripple funding for the program and would result in far fewer services being offered to patients who really need them. It's not a huge exaggeration to say that a DMEPOS surety bond can help to keep the Medical care program solvent, because its susceptibility to fraud and financial loss is significantly lessened.
How do I purchase a DMEPOS bond?
NFP has been a major provider of DMEPOS bonds since the inception of the requirement, with rates as low as $248.00 per year, with approved credit. We help clients overcome barriers (including credit issues) and provide access to competitive rates. Please call 800.863.3210 to speak with our experienced sales staff.