The Centers for Medicare and Medicaid Services (CMS) Publishes a Proposed Rule Regarding Surety Bonds
The Centers for Medicare and Medicaid Services (CMS) published a proposed rule on August 1, 2007, requiring all suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to obtain a surety bond. CMS is proposing implementation of section 1834(a)(16)(B) of the Social Security Act by requiring all DMEPOS suppliers to furnish CMS with a surety bond.
DMEPOS suppliers will be required to obtain a surety bond of at least $65,000. CMS believes that establishing a $65,000 surety bond for DMEPOS suppliers would:
- Limit the Medicare program risk to fraudulent DMEPOS suppliers
- Enhance the Medicare enrollment process to help ensure only legitimate DMEPOS suppliers are enrolled or are allowed to remain enrolled in the Medicare program
- Ensure the Medicare program recoups erroneous payments that result from fraudulent or abusive billing practices
- Help ensure that Medicare beneficiaries receive products and services that are considered reasonable and necessary from legitimate DMEPOS suppliers
The supplier community is invited to comment on this proposed rule. To be assured consideration, comments must be received by CMS no later than 5 p.m. on October 1, 2007.
The proposed rule and instructions on how to comment may be found at either www.gpoaccess.gov/fr/ or at www.cms.hhs.gov/QuarterlyProviderUpdates.