Medicare & Medicaid Bonds — FAQ

Also known as DEMPOS bonds, CMS bonds, and DME bonds, Medicare & Medicaid Bonds are required by the Center for Medicare & Medicaid Services from businesses that bill Medicare for equipment. The purpose of the bonds is to reduce fraud in Medicare billing.

Who needs Medicare & Medicaid Bonds?
DEMPOS bonds are a requirement for businesses that bill Medicare and deal in durable medical equipment, prosthetics, orthotics, and other equipment.

Why do we need these bonds?
Medicare & Medicaid Bonds are intended to ensure ethical practices when dealing with Medicare. The bond protects public funds from the fraudulent billing of medicare. So, protecting public money is one of the most critical aims of the bond.

How do we buy Medicare & Medicaid Bonds?
You can buy Medicare & Medicaid Bonds from a surety. Most surety bond companies will offer these bonds but do your due diligence before buying. Choose a surety bond company that specializes in these bonds, with a reputable, established name in the industry.

How does it work?
If you intend to bill Medicare for equipment, you’ll be asked to provide a Medicare & Medicaid Bond. You must buy the bond and post it with the Center for Medicare & Medicaid Services.

What is the cost of the bond?
The cost of the bond is a fraction of the bond amount. It is fixed according to various factors including the bond type, the principal’s credit score, and business background.

Can you get a bond with bad credit?
Yes, you can get a bond with bad credit. A number of surety companies deal with businesses with bad credit. To offset the credit score, the surety will look at factors like past business performance, financial stability, and future prospects. The cost of the bond will be higher.

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