The Centers for Medicare & Medicaid Services (CMS) has
issued a final regulation that requires most suppliers of durable
medical equipment, prosthetics, orthotics, and supplies (DMEPOS) to
post a $50,000 surety bond. The regulation specifically includes
O&P suppliers who do not have state licensure. Existing
suppliers must comply with this requirement by October 2, 2009, and
newly enrolling suppliers must meet this requirement by May 4,
2009. CMS stated, “The surety bond requirement is designed to limit
the Medicare program risk from fraudulent equipment suppliers and
help to ensure that only those suppliers who remain in the program
furnish items…that are considered reasonable and necessary….
The 2007 Medicare error rate report found approximately $1 billion
in improper payments for medical equipment and supplies.”
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