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Standards for DMEPOS suppliers




Durable Medical Equipment, Prosthetics, Orthotics, and Supplies

What does it take to be a DMEPOS supplier?

In 2006, the Centers for Medicare and Medicaid Services (CMS) stated that in order for DMEPOS suppliers to keep Medicare billing advantages, the suppliers must abide by the Medicare’s program’s supplier standards. The suppliers must provide durable medical equipment, medical supplies, home dialysis supplies and equipment, therapeutic shoes, parenteral/enteral nutrition, prosthetic and orthotics, as well as transfusion medicine and prosthetic devices. For more information on the standards, visit this page.

According to the Supplier Standards, DMEPOS suppliers must abide by the standards in order to receive and to keep their billing privileges. All the federal regulations for the standards can be found here.

A DMEPOS Surety Bond 

The Balanced Budget Act of 1997 requires DMEPOS suppliers to maintain a $50,000 surety bond in order for them to be in business. This bond provides legal protection to Medicare and Medicaid clients against fraud or malpractice from the bonded practitioners or physicians. These bonds are also known as “Medicare Bonds” or Medicaid Bonds”. Each DMEPOS supplier needs to submit and to maintain a $50,000 surety bond for every National Provider Identifier (NPI). One bond covers one location that has it’s own National Provider Identifier (NPI). For more than one location, a DMEPOS may need to have all locations listed on the same bond form. Although, each case varies depending on the bond type and coverage.

The purpose of this bond is to:

  1. restrict fraudulent suppliers within the Medicare program
  2. improve legitimacy of the Medicare enrollment process as well as the current suppliers
  3. guarantee Medicare is compensated for fraudulent payments from a flawed supplier
  4. provide Medicare beneficiaries the assurance that they will receive reasonable products and services  from legal suppliers

The bond needs to be obtained before the supplier is able to bill Medicare.  The price for the bond premium depends on the personal credit of the DMEPOS supplier.

It is free to apply for a bond with Surety1. Feel free to contact us at  1-877-654-2327 or online at our page.




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