Overview of Мinnesota DMEPOS Bond Requirements
The DMEPOS bond, also known as the Medicare bond, is a guarantee that durable medical equipment (DME) providers and suppliers will comply with the requirements of Center for Medicare and Medicaid Services (CMS) in conducting business. It also guarantees their compliance with the requirements detailed in the Minnesota Statutes.
The bond specifically protects against dishonesty, malpractice and fraud by licensed providers which result in losses to the Medicare program.
If a provider violates the requirements of the bond and their obligations, a claim can be filed against their bond to secure compensation for any such losses. When a claim is filed, the compensation that can be extended can be as high as full bond amount.
On top of having a bond claim against them, DME providers also risk having their license suspended or revoked.
If you are new to bonds, see our detailed ‘What is a surety bond’ guide for more information!
See below for more information about the cost of this bond, when a claim can arise and how you can get bonded.
If you prefer to speak to someone, call us at (866)-450-3412 anytime to have one of our professionals provide you with further information on the topic.
Cost of Getting Bonded
Your bond’s cost is a fraction of the full amount of the bond. Bond cost is also called a premium and is based on the surety’s assessment of applicants’ financial stability.
The initial amount for this type of bond is $50,000 per National Provider Identifier (NPI) as required by the CMS. This means that the cost of getting this bond will be a percentage of this amount.
When you renew your bond, the amount remains the same, unless a DMEPOS provider has had payments for DMEPOS services over $300,000 during the previous year, in which case this amount is increased to $100,000.
When you apply for the bond, your surety will offer you rate that is based on their assessment of a number of financial indicators. Your personal credit score has the highest leverage when it comes to setting your bond cost. The higher your score - the lower your rate. Your financial statements, liquidity and industry experience may also come into the picture if the surety decides to review those.
Applicants who have high scores, such as 700 FICO or more, can expect to get a rate of .75%-3% on their bond. To find out how much exactly you will need to pay to get this bond, complete our bond application form and we will provide you with a free quote on your bond.
Bad Credit Bond Program
If you need this type of bond but your credit score is significantly lower than 700 FICO, we’ve got you covered!
Applicants with low scores can get bonded just as easily and simply through our Bad Credit Program as everybody else! Due to the higher perceived risk for such applicants, rates under this program are slightly higher. But by improving your credit score, you are sure to get better rates every time you apply for a new bond.
See the program page to find out more about the program and to request a quote on your bond!
Claims Against Your Bond
This bond is conditioned upon the bonded supplier and provider’s compliance with both state laws as well as their obligations as defined CMS which issues DME provider licenses.
In Minnesota in particular, DME providers and suppliers must comply with the Minnesota Statute, Chapter 256B, any rules made by the Minnesota Commissioner of Human Services, as well as their obligations as DMEPOS providers. The main point of the DMEPOS bond in all states is to guarantee that any funds extended under the Medicare program to DME providers and suppliers are used accordingly.
If a provider is found to have violated these conditions and thus caused losses or damages, a claim can be filed against their bond by the state of Minnesota. Under such a claim, the surety would need to extend compensation to the claimant which can be as high as the full amount of the bond.
Get Your Bond Today!
You can begin the bonding process by completing the surety application form. We will shortly contact you with your free quote, along with further information about getting bonded with us.
Once you complete the application process, we will have your bond ready within two working days, after which we will forward it to you via mail and email.
If you have any questions about the bonding requirements in Minnesota or how to get bonded, call us at (866)-450-3412!