Surety Bond Hotline

Surety Bond Hotline

Jim Andreassen

1/13/2009

There have been a lot of questions recently regarding the new rule that CMS has mandated regarding surety bonds. VGM, the parent company of OPGA and POINT has set up a hotline to answer these questions. Please read the announcement below.
 
Regards,
 
Jim Andreassen
President, OPGA
 
VGM Insurance Introduces Surety Bond Hotline - 1-866-497-0472

A new CMS rule mandates that virtually all O and P providers will be required to have a surety bond in place later this year. VGM Insurance has established a Surety Bond Hotline to help providers understand this new requirement. If you have any questions about this new CMS mandate, or simply want someone to explain it to you in understandable terms, please call 1-866-497-0472 and and we'll answer all of your questions.

VGM Insurance assures suppliers that it will make available a surety bond product that meets all of the CMS requirements at a fair price, backed by the expertise of professionals who work with hundreds of HME and O&P providers each week. VGM Insurance will present its surety bond to the industry as soon as the surety industry and CMS work out remaining technical details of the bond requirement and once CMS has notified all providers who meet its high-risk status. Existing providers and those that do not anticipate a change in location or ownership should not acquire a surety bond prior to July 1 because requirements, levels of coverage and costs may change between now and July 1.

Beginning Jan. 9, suppliers may begin the bond process by submitting basic information to VGM Insurance. Once information has been submitted, you can be assured that VGM Insurance will obtain the best bond available. To begin this process, please click here < <URL Redacted>> .

For more information on the CMS surety bond requirement please contact VGM Insurance's Surety Bond Hotline at (866) 497-0472.

Additional details on the surety bond requirement:

As most of you are aware, CMS has issued final regulations regarding its surety bond requirement for certain DMEPOS suppliers. No later than Oct. 2, 2009, suppliers must provide the National Supplier Clearinghouse with a surety bond valued at no less than $50,000.

Important Note: New suppliers, suppliers changing location, or suppliers changing ownership must provide the bond no later than May 4, 2009. Accordingly, HME and O&P facilities with these situations should call the bond hotline immediately; identify themselves as a new/changed supplier and start the bonding process.

 

Suppliers deemed to be of significantly higher risk may be required to provide a bond valued at an amount greater than $50,000. National Supplier Clearinghouse will notify suppliers no later than July 1 if they have been deemed to be of high risk and will be required to purchase a bond of greater value than the $50,000 minimum.

CMS noted that its intention behind the surety bond requirement is to limit fraud and enhance the enrollment process by ensuring that only legitimate suppliers are enrolled in the Medicare program.

Exemptions from the regulation include:

*
Government operated DMEPOS suppliers who have provided a comparable bond under state law;
* State-licensed orthotics and prosthetics providers when:

* The business is solely-owned and operated by the O&P personnel and
* The business is billing only for O&P and related supplies;



Note: Some industry sources have reported that ALL O&P meeting the noted criteria would be exempt. O&P providers should be aware that only state-licensed providers would qualify for an exemption, even in the event that the practice is not located in a state that offers state licensure.

States currently requiring O&P licensure include:

· Alabama

· Arkansas

· Florida

· Georgia

· Illinois

· New Jersey

· Ohio

· Oklahoma

· Rhode Island

· Tennessee

· Texas

· Washington











































*
Physician and non-physician practitioners when providing DME and or Orthotics and Prosthetics to only their own patients;
* Physical and occupational therapists when:

* The business is solely owned and operated by the therapist,
* The items are only furnished to the therapist's own patients and
* The business is only billing for O&P and supplies;



For a more complete summary prepared by VGM, click on the following link:

<URL Redacted>

To review the entire regulation (CMS-6006-F), click on the following link:

<URL Redacted>

  

 

 

 
 


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