Surety Bond

Jim DeWees

Last Friday (just before the holiday weekend), I got a letter in the mail from Palmetton GBA regarding surety bonds and accreditation. In it was a grid with Supplier Type, Accreditation and Surety Bond check boxes. For O&P facilities they have listed “Y”s in both boxes for Surety Bonds and also Accreditation.

At first glance, you would think that when there is a “Y” in the box, that it means that it IS required. But, then reading it closer, and the header at the top, it says that a “Y” means that it is exempt.

So, just so nobody gets confused and spends unecessary money on anything, according to this paper, O&P facilities that only bill for O&P and supplies, and who make custom O&P devices, are exempt from both accreditation and also surety bonds.

The reason I am sharing this is because I have gotten 3 phone calls from friends/colleagues asking me what I thought about this letter, and making sure they are understanding it correctly.

Basically, this letter is a great form of double-negativity…..a “Y” means that yes, you do NOT need to have a surety bond…..instead of a simple “N”, which means that no, you do not need a surety bond.

Remember that Palmetto GBA is the contracted company by Medicare/CMS to review and assign medicare provider ID numbers.

Thanks,

Jim DeWees, CP

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