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DMEPOS Medicare Bond

DMEPOS Medicare Bond

Medicare DMEPOS Bond

You may have heard of a DMEPOS surety bond in one of its several aliases, but they are a type of bond which 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, and CMS Bonds (Centers for Medicare and Medicaid Services), these bonds actually fall into the category of License & Permit bonds and 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? medicare 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? 

The reason that DMEPOS bonds are so important is that they 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. It has served to drastically reduce the number of malpractice and fraud cases in Medicare, and it also ensures 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.

What we do:

Surety by NFP has been a major provider of the medicare DMEPOS Bond since the inception of the requirement, with rates as low as $248.00 per year, with approved credit. Credit issues?  Don’t worry.  We can get you the most competitive rates, regardless of credit. Please call (800) 863-3210 to speak with our experienced sales staff.  For further questions regarding licensing, please visit   Surety by NFP has been the leading provider of bonds since 1984.  Let our experienced staff of bonding agents, make sure you, and your medical business is properly protected.

Suppliers of Tough Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) are required by the Centers for Medicare & Medicaid Services (CMS) to obtain a $50,000 DMEPOS and file this bond with the National Suppliers Clearinghouse (NSC). The bond amount may be increased if the DMEPOS supplier has had a final adverse action imposed against it within the past 10 years.  The bond pharmacy also requires one as well.

dmepos medicare bond


DMEPOS Surety Bond

We specialize in all kinds of sureties in every state!  We are your one-stop-shop for all your bonding and insurance needs.  Call or simply fill out our online application today.  It only takes a few minutes, and we will get you bonded in as little time possible.

A medicare DMEPOS Bond is issued by surety companies guaranteeing that a DMEPOS supplier will fulfill an obligation or series of obligations to a third party (the Medi-care program).  If the obligation is not met, the Medical care program will recover its losses via the bond.

Thank you, and once again, we appreciate your business.

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