• linkedin
  • Increase Font
  • Sharebar

    Tips to ensure Medicare bond will be accepted under CMS's proposed rule change

    If you are a Medicare provider who’s had to post a Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) surety bond, you need to know about about the latest proposed rule change from the Centers for Medicare & Medicaid Services (CMS), because it may affect the legitimacy of the bond you are currently holding.

    If the CMS gets its way, the rules governing this bond may get more stringent. This could spell trouble for many DMEPOS providers, whose surety bonds may no longer be accepted by CMS. Providers whose bonds are rejected will have to obtain a new surety bond from a surety company that complies with the new CMS guidelines, or face disenrollment from Medicare.


    Related: Why physicians may want to apply for the CPC+ program


    The proposed new bond requirements are laid out in CMS’s Proposed Rule,“Medicare, Medicaid, and Children’s Health Insurance Programs; Program Integrity Enhancements to the Provider Enrollment Process.” The proposal includes far-reaching changes for medical equipment suppliers, meant to close loopholes that, according to CMS, are being exploited by certain providers and suppliers in their Medicare claims.


    Hot topic: MIPS explained—4 categories physicians must master


    With this Proposed Rule, CMS aims to increase its authority over DMEPOS suppliers’ Medicare enrollment, and expand the definition of what medical suppliers are required to disclose to CMS. There’s a lot to digest in the Proposed Rule, but let’s focus specifically on the surety bond provisions, and go over what you can do to ensure that, no matter what, your DMEPOS bond is accepted by CMS:

    New Surety Bond Rules

    The Proposed Rule would give CMS the authority to reject any Medicare bond if it’s been furnished by a surety that doesn’t meet certain criteria. For example, if a surety hasn’t submitted required payment to CMS in accordance with the surety bond guidelines in 42 CFR § 424.57(d), bonds issued by it might be rejected. If your Medicare bond is rejected, you’re back to square one: you must purchase a new bond from a surety who has made the requisite payments to CMS, or you could be disenrolled from Medicare.

    Next: Know who you're working with

    Vic Lance, MBA
    Vic Lance, MBA, is the founder and president of Lance Surety Bond Associates, based in Doylestown, Pennsylvania. He is a surety bond ...


    You must be signed in to leave a comment. Registering is fast and free!

    All comments must follow the ModernMedicine Network community rules and terms of use, and will be moderated. ModernMedicine reserves the right to use the comments we receive, in whole or in part,in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

    • No comments available

    Latest Tweets Follow