Medicare Issues Final Rule Requiring Surety Bonds for DMEPOS
Elizabeth Mansfield
Description
Collection
Title:
Medicare Issues Final Rule Requiring Surety Bonds for DMEPOS
Creator:
Elizabeth Mansfield
Date:
12/31/2008
Text:
CMS today issued a final surety bond regulation, required by the
Balanced Budget Act of 1997, that makes certain suppliers of durable
medical equipment, prosthetics, orthotics and supplies (DMEPOS) post a
$50,000 surety bond. Existing suppliers must comply with this
requirement by Oct. 2, 2009 while newly enrolling suppliers must meet
this requirement by May 4, 2009. This requirement was due in part to
the large number of improper and potentially fraudulent payments to
medical equipment suppliers for furnishing medical equipment and
devices to people with Medicare. The 2007 Medicare error rate report
found approximately $1 billion in improper payments for medical
equipment and supplies.
While this regulation requires most suppliers to obtain a surety bond,
some companies or organizations that supply these items are exempt from
the surety bond requirement, including certain physicians and
non-physician practitioners, physical and occupational therapists,
state-licensed orthotic and prosthetic personnel, and government-owned
suppliers.
READ MORE
<URL Redacted>
The O&P Marketing Blog
Outsource Marketing Solutions
860-967-4184
Balanced Budget Act of 1997, that makes certain suppliers of durable
medical equipment, prosthetics, orthotics and supplies (DMEPOS) post a
$50,000 surety bond. Existing suppliers must comply with this
requirement by Oct. 2, 2009 while newly enrolling suppliers must meet
this requirement by May 4, 2009. This requirement was due in part to
the large number of improper and potentially fraudulent payments to
medical equipment suppliers for furnishing medical equipment and
devices to people with Medicare. The 2007 Medicare error rate report
found approximately $1 billion in improper payments for medical
equipment and supplies.
While this regulation requires most suppliers to obtain a surety bond,
some companies or organizations that supply these items are exempt from
the surety bond requirement, including certain physicians and
non-physician practitioners, physical and occupational therapists,
state-licensed orthotic and prosthetic personnel, and government-owned
suppliers.
READ MORE
<URL Redacted>
The O&P Marketing Blog
Outsource Marketing Solutions
860-967-4184
Citation
Elizabeth Mansfield, “Medicare Issues Final Rule Requiring Surety Bonds for DMEPOS,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 24, 2024, https://library.drfop.org/items/show/229897.
