What Are The Benefits Of Medicare Bonds?
Medicare bonds, also known as Medicaid bonds, CMS surety bonds, DMEPOS surety bonds, Durable Medical Equipment surety bonds, Pharmacy surety bonds, or Centers for Medicare and Medicaid Services surety bonds, are required by the Centers for Medicare & Medicaid Services (CMS) for all suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). The key purpose behind obtaining Medicare & Medicaid bonds is to:
- Boost the authenticity of the Medicare enrollment process and current suppliers
- Limit the Medicare program risk to deceitful suppliers
- Make certain that the Medicare program is indemnified for incorrect payments resulting from fake or abusive supplier billing practices
- Make sure that the Medicare beneficiaries receive reasonable products and services from genuine suppliers
The suppliers are usually required to post a $50,000 CMS surety bond. Furthermore, separate CMS surety bonds are required for every National Provider Identifier (NPI) obtained for DMEPOS billing purposes. In order to obtain a Medicare bond, the manufacturers are required go through a credit check, get their application approved, and undergo various other screening processes.