New Medicare Bond Opportunity Available
May 22, 2009
Federal government requires bonds for Medicare equipment suppliers.
The Centers for Medicare & Medicaid Services (CMS) now requires Durable Medical Equipment, Prosthetic and Orthotic Suppliers (DMEPOS) to have a bond. Existing suppliers are required to file their bonds by October 2, 2009.
The bond is required of those who bill Medicare for equipment they sell. In general they will need one bond per enrolled location. Applications are available by logging in to the Merchants Agent Center here.
Who needs the bond?
DMEPOS Suppliers. Certain exceptions apply (including physicians, non physician practitioners selling equipment to their own patients, certain orthotics and prosthetic suppliers and government owned and run suppliers). One bond is needed for each separate enrolled location.
How much is the bond?
The bond is $50,000 per enrolled location. A bond in excess of $50,000 may be required if they have had past violations. We are not a market for those with past violations.
What does it guarantee?
It guarantees unpaid claims, penalties, assessments imposed by the Centers for Medicare & Medicaid Services (CMS). It is intended to help prevent fraud and abuse of the Medicare system.
How will Merchants underwrite?
If an applicant needs one bond, we will require a completed and signed application, including:
1. The complete name and address for the applicant. Please note this is the name the bond will be written in.
2. National Provider Identification (NPI) Number and National Provider Transaction Access Number (PTAN) – also known as the Medicare Legacy Number per enrolled location.
3. Personal information on each owner of the business. This includes the name, address, Social Security number and verification whether he/she owns any real estate.
4. Business and personal indemnity of all owners and spouses.
5. Information regarding how long they have been in business.
If the applicant has been in business for less than three years, does not own real estate, or has more than one enrolled location and therefore needs more than one bond, the following additional information is required:
6. A business financial statement.
7. A personal financial statement from each owner.
Rates:
$10 per thousand
• Over 3 years in business
• Owns real estate
• Clean credit
This is approved in most states. Contact Merchants Bonding at 800-678-8171 for additional details.
$5 per thousand
• State licensed and accredited
This rate is approved in most states. Contact Merchants Bonding for details.
$20 per thousand
• All others
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