Durable Medical Equipment, Prosthetics and Orthotics Suppliers Bond (DMEPOS)

Who is Required To Purchase a DMEPOS Bond?

Any individual or business who sells durable medical equipment, prosthetics, orthotics, and other similar supplies and who bills Medicare or Medicaid, must register as a DMEPOS supplier.

One of the requirements of being a DMEPOS supplier is obtaining a National Provider Identifier or NPI before you can start providing, prescribing, and billing for equipment and supplies.

An NPI typically includes having a dedicated office or business location.

Typical businesses that require DMEPOS registration are:

• Physician's offices
• Occupational therapists
• Physician assistants
• Dentists
• Some nutrition professionals

Among many other professions.

What is the DMEPOS Bond Amount?

Each NPI must purchase it's own surety bond coverage in the amount of $50,000.

This bond is for the protection of your patients and for Medicare.

What Specifically Does The DMEPOS Bond Protect Against?

Despite the DMEPOS enrollment process and all the other training and certifications it takes to open a qualified business, every year there will be a small number of professionals who purposefully commit fraud to make or keep more money.

Examples of these types of fraud can include actions such as:

• Providing unnecessary equipment for a patient like enrolling them in automatic refills when it's unnecessary
• Billing for a high end equipment model but providing the patient or customer with a lower tier model pocketing the difference
• Billing for non-existent equipment
• Providing equipment or supplies that do not meet safety standards
• Giving doctors or other professionals kickbacks for referrals and prescriptions for medical equipment

If a DMEPOS supplier is found guilty of these actions or similar, the customer or Medicare can seek financial compensation by making a claim against the surety bond.

However the maximum amount of any single claim can only be equal to the $50,000 bond amount.

What Is The Cost of a DMEPOS Bond?

The price of a $50,000 DMEPOS surety bond is going to be determined by a rate quoted from a surety. A surety is an insurance company that underwrites DMEPOS surety bonds.

Every surety is unique and conducts its own assessment of an applicant typically using factors such as:

• The personal credit of the applicant
• Business and industry experience
• Prior bond claims from previous licenses or other states

Because each surety uses their own underwriting criteria, this means the rates quoted by each surety can vary by a large enough amount to save you hundreds of dollars on the price.

This is why you should use a surety agency like Surety Bonds Direct to purchase your surety bond.

As a specialized surety agency, we use our network of A rated sureties to price shop for you to find the lowest possible rate.

Example DMEPOS Surety Bond Pricing

Let's look at examples of different rates and prices for the $50,000 bond.

Pay attention to how one to two percentage points can make a significant difference in the price you'll pay.

We have regularly seen rates range multiple percentage points so you can see, getting the lowest possible rate is a big deal.

Discover Your Exact Pricing In One Business Day

You can request a price quote today for your bond.

We will price shop for you and find the lowest possible price. The best part is, this costs you nothing and there's no obligation to purchase once you get your pricing.

This is free information you can use to get through the DMEPOS registration process and make the right decision for your business.

How Long Does a DMEPOS Bond Last?

DMEPOS bonds have bond term that is 12 months from your bond's effective date.

The effective date is the date your bond becomes "active". You choose the effective date when you purchase your bond.

This is another great reason to work with Surety Bonds Direct. You get assigned a bond specialist and they manage this process for you.

As your bond expiration date approaches, your bond specialist will reach out to you 30 to 40 days in advance to make renewing your bond fast and easy.

Renewing is as simple as paying the renewal premium.

If your bond specialist can find you a less expensive bond premium, they will.

What Happens After You Purchase Your DMEPOS Bond?

Once you complete your purchase, our bond issuance team will get to work to prepare your bond with the:

• Correct bond form
• Necessary signatures
• Seals
• Power of Attorney

The CMS will accept a copy of the bond. This means we can email you a copy, speeding the process up.

Once you receive your bond you can submit it with the rest of your DEMPOS registration packet.

Getting Your DMEPOS Registration

Getting your DEMPOS registration is not a complicated process. The Center for Medicare and Medicaid Services outlines all of the steps you need follow.

The process typically follows these steps:

• Meet the accreditation including business documents
• Financial statements
• Get an National Provider Identifier for each practice location
• Complete the enrollment application and electronic funds transfer authorization agreement
• Pay the medicare application fee
• Purchase your surety bond
• Work with your enrollment officer until you complete the process