Medicare Bond is also known as DMEPOS is required by the Centers for Medicare & Medicaid Services (CMS) . On December 29, 2008 they announced regulations requiring suppliers of certain durable medical equipment, prosthetics, Orthotics, and supplies to post a surety bond as a condition of new or continued Medicare enrollment.
The regulation states that suppliers seeking to enroll or changing the ownership of a DMEPOS supplier must submit a $50,000 surety bond for each assigned NPI for which the DMEPOS supplier is seeking to obtain Medicare billing privileges. Existing DMEPOS suppliers must submit to the NSC a $50,000 surety bond for each assigned NPI no later than October 2, 2009.
DMEPOS Supplier enrolling a new practice location must submit to the NSC a new surety bond or an amendment or rider to the existing bond, showing the new practice location is covered by an additional base surety bond of $50,000. Suppliers who have certain adverse legal actions imposed against them in the past may be required to post a higher bond amount. The final regulations permit the NSC to require DMEPOS suppliers to obtain a base surety bond of $50,000 and an elevated surety bond of $50,000 for each occurrence of an adverse legal action within ten years preceding enrollment, revalidation, or enrollment in the Medicare program.