Medicare & Medicaid Bonds — Who Needs Them & Why
The purpose of most surety bonds is to ensure an ethical working or business environment. When used in healthcare, these bonds also serve the sole purpose of ensuring the safety of patients. Medicare & Medicaid Bonds are meant to protect against fraud. The bond is usually required from manufacturers or suppliers of equipment. If found guilty of fraud, a claim can be made against the bond.
Who needs Medicare & Medicaid Bonds?
The Medicare & Medicaid Bonds are required for businesses and manufacturers that supply equipment to Medicare and Medicaid services. These are usually categorized as DEMPOS — durable medical equipment, prosthetics, orthotics and supplies. It can also include personal care agencies.
Why do we need Medicare & Medicaid Bonds?
Safety of medical equipment: The bond covers almost all kinds of medical equipment used in Medicare or Medicaid services. Medical equipment is often a life-saving necessity. A bond ensures that suppliers of such equipment are diligent about their own processes and quality checks, and refrain from any fraudulent activities. This is a necessary requirement when it comes to medical equipment.
Trust in Medicare/Medicaid services: Medicare/Medicaid services are critical for people who cannot afford expensive medical treatment. It is important to safeguard public trust in these services. Apart from ensuring competent staff, there is a need to ensure the safety of equipment used by these services. These bonds are a step in that direction.
Establishment of ethical practices: The aim of surety bonds like Medicare & Medicaid Bonds is the establishment of ethical practices in the medical industry. The buyer of the bond promises not to engage in any fraudulent activities. By setting the terms of operation and a clear penalty, we ensure that the operators stick to guidelines.
Protecting public money: State health programs like Medicare and Medicaid are funded by taxes collected from the general public. The funds are used to provide medical care to economically vulnerable people. The Medicare & Medicaid Bonds are, designed to protect the public funds from being misused.