All businesses involved in the Supply and manufacturing of Durable Medical Equipments, Prosthetics, Orthotics and Supplies (DMEPOS) need to get Medicare and Medicaid Bonds if the wish to carry out their business in any or all states across US. These bonds are license and permit surety bonds, needed by CMS, which is an acronym for Centers for Medicare & Medicaid Services. By getting these bonds, businesses complete the mandatory procedure of enrollment with the CMS. For this bond, suppliers of medical equipment are usually required to buy a durable medical equipment surety bond worth 50,000 USD.
Also known as Durable Medical Equipment surety bond, these bonds are also popularly known as Medicare or Medicaid surety bonds, Pharmacy surety bonds, DMEPOS surety bonds and CMS surety bonds as well. The primary purpose of these bonds is to ensure that Medicare beneficiaries are supplied good quality durable Prosthetics, that make their life easier. Apart from that, there are other purposes of these bonds as well, which are explained below.
The purposes of Medicare & Medicaid bonds are:
- To control the risk associated with Medicare program in the context of counterfeit suppliers
- To increase the legality and authenticity of Medicare enrollment process and present suppliers
- To make sure that Medicare program is compensated for invalid payments as a result of fake supplier billing practices
- To make sure that the beneficiaries of the Medicare program are able to get good quality products and services from genuine suppliers
Presided over by the department of health and human services, who publish the guidelines and regulations pertaining to these bonds, these bonds are a great safeguard against scams and misconducts in the supply of Durable Medical Equipment for the benefit of the Medicare beneficiaries.
So, if you are a supplier of medical equipment, prosthetics, orthotics and supplies, you will be required to get the Medicare & Medicaid Bonds to guard against Medicare/Medicaid scam and exploitation. If you do not comply with these rules defined by Centers for Medicare & Medicaid Services (CMS), a claim could be made on the bond purchased by you. This could happen if you don’t supply the beneficiary with the desired equipment and present a falsified bill to Medicare; a claim could be made against your bond value for compensation.
Moreover, if you are unable to obtain these bonds on time, you could also face the following consequences:
- You could face revocation of all medical billing privileges by Medicare
- Your license to supply these medical supplies may also get suspended
- You could also face conviction by a federal or state court