Nebraska DMEPOS Bond Overview
The Medicare Surety Bond, also known as Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Bond (DMEPOS bond) is required by the federal government for all DMEPOS suppliers and manufacturers. Personal care agencies may also be required to obtain this bond, depending on state regulations. This bond is also referred to as a medicare bond and a medicaid bond.
This $50,000 bond requirement has been in place since a 2009 Centers for Medicare & Medicaid Services (CMS) regulation took effect in hopes of eliminating malpractice. It protects the government from DMEPOS suppliers and manufacturers who engage in medical billing fraud and exploit the medicare system. It also protects patients who’ve been sold unnecessary medical equipment.
By instituting the Medicare (DMEPOS) surety bond requirement, CMS has sought to reduce the number of malpractice cases. An additional aim has been to limit the number of illegitimate suppliers or manufacturers who intend to commit fraud, as well as make sure that the Medicare system is compensated in cases of fraud.
A separate bond is required for every location which has its own National Provider Identifier (NPI). Alternatively, it may be possible to write one bond at a higher amount which lists all locations in an addendum. See below for more information on cost.
Bryant Surety Bonds can offer excellent rates on medicare surety bonds to both applicants with good credit score as well as those with poor credit. We have access to many different markets, allowing us to find the best rates in all states!
Nebraska Medicare Bond Cost
Your surety bond cost is a percentage of the bond’s full amount. For example, if your bond amount is $50,000, the actual cost you will have to pay could be anywhere between 1% and 15% of this amount. For multiple locations, all of which have a different National Provider Identifier (NPI), you will either have to get separate bonds, or one bond with a total amount equal to the number of your NPI times $50,000. For example, for three NPIs, you will have to obtain a $150,000 surety bond.
When determining the rate of your Medicare bond, sureties will check your personal credit score. This is taken as an indicator of your financial strength and stability. If you have a high credit score, you will usually be offered a rate between 1%-4% or less of your bond’s total amount. In other words, on a $50,000 Medicare surety bond you will have to pay a $500-$2,000 premium.
It is important to note that DMEPOS suppliers or manufacturers may need to get further coverage if during the 10 years prior to becoming licensed suppliers they have experienced one of the following difficulties:
- they have lost Medicare privileges
- they have had their license suspended
- they have been excluded from a health care program
- they have been convicted of a felony
On the other hand, certain businesses may be exempted from the medicare surety bond requirement. Since legislation changes often, it may be best to check with the relevant state agency or the CMS to find out whether you, as a physical or occupational therapist, are exempted from the requirement.
By getting your bond with Bryant Surety Bonds you will be backed by some of the best surety companies in U.S. We work only with A-rated and T-listed sureties that have extensive experience and offer exclusive rates. Apply today for a free quote!
Almost all surety bond applications are assessed according to a number of financial factors. These determine the rate that applicants receive. To understand more about this process, have a look at our detailed surety bond cost guide!
Bad Credit Bond Program
DMEPOS suppliers and manufacturers who have a low credit score or demerits in their credit reports may experience difficulty getting bonded. Fortunately, our Bad Credit Surety Bond Program can accommodate such applicants and offer them competitive rates on Medicare bonds.
Rates on Medicare surety bonds under our bad credit program range between 5%-7.5% of the total amount of the bond, though how much exactly depends on every applicant’s individual credit profile. The slightly higher rates are due to the higher risk involved in bonding such applicants. Nevertheless, Bryant Surety Bonds always looks for the best rates and with access to so many markets, we are often able to get the lowest rates for our clients!
How to Get Your Medicare Surety Bond in Nebraska
Your surety bond is just a few clicks away. Apply online here, fill in your application, and provide us with a few details about your medicare bond. Your free bond quote will arrive shortly after. We can then proceed with sorting out any additional details and underwriting your bond. Apply now and let’s get started!
Feel free to call us at (866) 450-3412 anytime! Our surety bond experts are at your service to provide you with more information about Medicare bonds, guide you through the application process or consult you. We will be happy to help you get bonded!