Thanks to Claire Miley of Bass, Berry & Sims in Nashville, Tennessee for posting an alert regarding the final DMEPOS Surety Bond requirements. Below is the text of the American Health Lawyers Association e-mail alert.

CMS Issues Final Rule Requiring Surety Bonds for DMEPOS


On December 29, 2008, the Centers for Medicare & Medicaid Services (CMS) announced regulations requiring suppliers of certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) to post a surety bond as a condition of new or continued Medicare enrollment. Specifically, the final regulations require:


  • For DMEPOS Suppliers Seeking Enrollment or with a Change in Ownership. Beginning May 4, 2009, DMEPOS suppliers seeking to enroll or to change the ownership of a supplier of DMEPOS must submit to the National Supplier Clearinghouse (NSC) a $50,000 surety bond for each assigned NPI for which the DMEPOS supplier is seeking to obtain Medicare billing privileges.
  • For Existing DMEPOS Suppliers. Beginning October 2, 2009, each Medicare-enrolled DMPOS supplier must submit to the NSC a $50,000 surety bond for each assigned NPI to which Medicare has granted billing privileges.
  • Enrolling New Practice Locations. A DMEPOS supplier enrolling a new practice location must submit to the NSC a new surety bond or an amendment or rider to the existing bond, showing the new practice location is covered by an additional base surety bond of $50,000.
  • Elevated Surety Bond Amounts. Suppliers who have certain adverse legal actions imposed against them in the past may be required to post a higher bond amount. The final regulations permit the NSC to require DMEPOS suppliers to obtain a base surety bond of $50,000 and an elevated surety bond of $50,000 for each occurrence of an adverse legal action within ten years preceding enrollment, revalidation, or reenrollment in the Medicare program.

The final regulations are effective March 3, 2009. Some companies or organizations that supply DMEPOS are exempt from the surety bond requirements, including certain physician and non-physician practitioners, physical and occupational therapists, state-licensed orthotics and prosthetic personnel, and government-owned suppliers.