6 Things to Know before Buying Medicare Bonds online
Also known as DEMPOS bonds, Medicare Bonds are required by the Centers for Medicare and Medicaid Services or CMS. It is designed to reduce instances of fraudulent billing to Medicare. You can buy Medicare Bonds online. Here are a few things you should know about Medicare Bonds:
– It is a requirement of all suppliers of durable medical equipment, prosthetics, and orthotics that intend to bill Medicare. You don’t need to buy the bond if you are not billing Medicare for the equipment. But keep in mind that most health institutions deal with Medicare in one form or another. So, it’s a good idea as a medical equipment supplier to get bonded.
– One bond does not cover all states or locations. Each location has its own National Provider Identification Number (NPI) and you will have to purchase a separate bond for each location. If you are supplying to different locations, each with a separate NPI, you should list each location on your surety form. Some surety companies will issue a single bond, which lists each location. This way you can cut the paperwork.
– The obligee in a Medicare Bonds online is the CMS. Hence, the bond must be posted with the CMS.
– The Medicare Bond guarantees that all claims submitted to Medicare are legitimate. The purpose of the bond is to discourage fraudulent behavior by suppliers or physicians and medical practitioners. Claims by suppliers or billing by bonded physicians can both come under scrutiny.
– The Medicare Bond is essential in ensuring financial security for public health programs. CMS is a federal agency, funded by taxpayer money. By protecting Medicare billing, we are also protecting public funds, which can be channeled into other important areas or for widening the healthcare coverage.
– You can buy Medicare Bonds online. But do check the credit rating of the surety company as well as its rules and regulations. It must be a reputable company.