Surety Bonds and You

January 23, 2009 at 4:31 pm Leave a comment

Right at the end of the year, CMS announced final surety bond requirements for certain durable medical equipment, prosthetics, orthotics and supplies suppliers (DMEPOS).   CMS has focused on DMEs, apparently with good reason:

The 2007 Medicare error rate report found approximately $1 billion in improper payments for medical equipment and supplies. 

We’ve had a couple of customers ask about the implications of this for healthcare providers.   For now, our understanding is that healthcare providers do not need to collect surety bond information directly from DMEPOS.   Rather, the healthcare provider only needs to be sure any DMEPOS they may contract with is not on any CMS or state agency sanction list.  

And how many DMEPOS might be on such a list.   Well, the same CMS press release noted:

CMS has revoked billing privileges of 1,139 DMEPOS suppliers as part of the DMEPOS High-Risk Suppliers Demonstration.   

Ouch.

Entry filed under: Medicare/Medicaid CMS.

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