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A Guide to DMEPOS Bonds / Medicare Bonds

This page is a guide to surety bonds for Medicare DMEPOS bonds that are required for pharmacies. If you’re looking for information on pharmacy wholesaler bonding, click here.

At SuretyBonds.com, we know that clients are typically not too familiar with surety bonds and often have little to no experience with them. So, to help your understanding of these bonds, we’ve developed this quick and easy guide with information concerning the Medicare DMEPOS surety bond requirement.

Intending to curb medical billing fraud, the Centers for Medicare and Medicaid Services (CMS) established the bonding requirement in 2009. Most suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) must file a $50,000 surety bond before they can bill Medicare. Because they’re required by CMS, these bonds are also known as “Medicare Bonds” or “Medicaid Bonds.” Medicaid Provider Bonds are similar in nature, but they are not issued on the same form.

Pay a Low Premium for Your Bond

Your Medicare surety bond premium will be based on a few different factors. Most DMEPOS suppliers who work with SuretyBonds.com pay a rate that’s just .5-2% of the bond amount. So, if you need $50,000 of coverage, you could pay a premium that’s just $250 to $1,000.

However, DMEPOS suppliers must maintain $50,000 of coverage for each National Provider Identifier (NPI) they operate (not including sole proprietorships). For example, a DMEPOS supplier that manages five NPI locations would have to obtain a $250,000 bond.

DMEPOS suppliers must also get additional coverage if any adverse legal action has been taken against the company in the 10 years prior to enrolling in the program. Such actions could include:

Since bond costs are calculated as a percentage of the bond amount, premiums for more than $50,000 of coverage will cost more.

Bad Credit? No Problem! We Can Bond You

Don’t worry if you have a low credit score. SuretyBonds.com believes that every client should be able to get the DMEPOS Bond they need regardless of credit history. This is why we developed our unique Bad Credit Surety Bond Program that can approve 99% of applicants. Don’t let bad credit keep you from getting the bond you need. Contact us now to apply for your bond!

Get Your Medicare Bond Fast

We know getting a surety bond can be stressful, and you don’t want to sit around waiting. If you’re in a rush, SuretyBonds.com can help. Because we offer an overnight shipping option, you could have your bond in your hands tomorrow if you pay for it today. Get started by applying now!

Learn More About DMEPOS Bonds

By requiring DMEPOS bonds, CMS hopes to:

Some suppliers can be exempted from the DMEPOS Bond requirement. Physical and occupational therapists in private practices are exempted if

Despite heavy lobbying, there are no exceptions for nursing homes or pharmacies that bill Medicare for DMEPOS. The regulation also requires suppliers to submit a surety bond upon a change of ownership or a move to enroll a new business site.