A Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Surety Bond is required of some suppliers of durable medical equipment (DME). The surety bond requirement was put in place by the Centers for Medicare & Medicaid Services (CMS). The rule requires that DME suppliers required to be bonded maintain the bond on a continuing basis. The minimum DMEPOS bond amount is $50,000. The bond amount may be higher for DME suppliers with more than one National Provider Identifier (NPI).
The DMEPOS Surety Bond requirement is in place to protect Medicare/Medicaid. The bond, when put in place, makes the Surety liable for any unpaid claims; an unpaid claim being an overpayment from Medicare/Medicaid to the DMEPOS supplier.
In the instance of an unpaid claim, Medicare/Medicaid can make a claim on the DMEPOS Bond. At that point, the Surety would make the payment, up to the bond amount, to settle the claim. The Surety in turn will attempt to collect the paid amount from the DMEPOS supplier. The supplier is ultimately financially responsible for any amount paid out on a claim by the Surety.
Rates for DMEPOS Bonds vary widely. The rates are determined based on various factors which include credit standing and may include financial standing as well. Typically, the poorer the credit, the higher the quotes are for DMEPOS Bonds.
The best way to get a truly accurate quote for a DMEPOS Bond is to apply for the bond and let the underwriter review the request and put a quote together.
Viking Bond Service, Inc. will always attempt to get the best rate for any surety bond request. In instances where the rate is high to start due to challenged credit, our renewal department can remarket the bond if there has been an improvement in credit and/or financial standing.
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