Surety Bonds
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Medicare
Medicare Bonds or DMEPOS Bonds, are mandatory for manufacturers and suppliers of Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS). Starting in January 2009 after a rule imposed by the Centers for Medicare & Medicaid Services (CMS). The requirement is aimed at curbing medical fraud and malpractice. Certified nurse-midwives Certified registered nurse anesthetists Clinical psychologists and registered dietitians or nutrition professionals. Clinical nurse specialists Clinical social workers Nurse practitioners Physician assistants - Physical and occupational therapists in private practice may be exempted if: the business is a sole propietorship and operated by the physical or occupational therapist. The items are furnished only to the physical or occupational therapist\'s own patients as part of his or her professional service the business is only billing for orthotics, prosthetics and supplies. Suppliers with multiple locations need to be aware that bonds are required for each National Provider Identifier (NPI), i.e. - a larger DMEPOS supplier with four locations would have to obtain a $200,000 Medicare/DMEPOS Bond, one for each location. Please be aware that DMEPOS suppliers will have to obtain additional $50,000 in surety bonds for any adverse legal actions taken against the company within the past 10 years before enrolling. Those adverse legal actions can include: Losing Medicare billing privileges Suspension or revocation of a license Loss or suspension of accreditation A felony conviction Exclusion from a federal or state health care program There are no exceptions for nursing homes or pharmacies that bill for Medicare/DMEPOS to their own residents. The new regulation also requires suppliers to submit a Medicare/DMEPOS Bond upon a change of ownership or a move to enroll a new business site. |

