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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. If you’re looking for information on DMEPOS Competitive Bidding Program Bonding, click here

At SuretyBonds.com, we understand some clients are not very familiar with surety bonds. This quick and easy guide will help your understanding of these bonds with information concerning the Medicare DMEPOS surety bond requirement.

What is a DMEPOS Bond?

The Centers for Medicare and Medicaid Services (CMS) established a bonding requirement in 2009 intending to curb medical billing fraud by physicians or medical practicioners. Most suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) must file a $50,000 surety bond before they can bill Medicare. Because DMEPOS bonds are required by CMS, they 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.

Learn More About DMEPOS Bonds

By requiring DMEPOS bonds, CMS intends to:

  • Permit only legitimate DMEPOS suppliers to enroll and participate in the Medicare program to hinder Medicare fraud
  • Guarantee that the Medicare program is reimbursed for any losses resulting from illegal business practices

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

  • The business is solely-owned 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 only bills for orthotics, prosthetics and supplies

However, there are no exceptions for nursing homes or pharmacies that bill Medicare for DMEPOS.

Bond Type
$50,000Medicare DMEPOS Bond
$100,000-$1,000,000Medicare DMEPOS Bond

How much does a DMEPOS bond cost?

SuretyBonds.com is dedicated to finding the most affordable rates on bonds for our clients. Qualified DMEPOS suppliers with good credit who work with SuretyBonds.com typically 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, there are some exceptions:

  1. Since bond costs are calculated as a percentage of the bond amount, high premiums will cost more.
  2. DMEPOS suppliers must maintain $50,000 of coverage for each National Provider Identifier (NPI) they operate. This means if a DMEPOS supplier manages five NPI locations, they would have to obtain a $250,000 bond.
  3. 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 include losing Medicare billing privileges, suspension or revocation of a license/accreditation, a felony conviction, and exclusion from a federal or state healthcare program

Poor Credit? We Can Bond You

SuretyBonds.com believes that every client should be able to get the Medicare Bond they need regardless of credit history. This is why we developed our unique Bad Credit Surety Bond Program that approves 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. If you need one urgently, SuretyBonds.com can help. Because we offer overnight shipping, you could have your bond tomorrow when you pay today. Get started by applying now.

Call 1 (800) 308-4358 to talk with a Surety Expert