Surety Bonds for Suppliers of Durable Medical Equipment, Prosthetics, Orthotics and Supplies

The Centers for Medicare & Medicaid Services (CMS) announced regulations requiring suppliers of certain durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to post a surety bond as a condition of new or continued Medicare enrollment. The regulation states that beginning May 4, 2009, suppliers seeking to enroll as a new applicant, adding an additional practice location, or changing the ownership of a DMEPOS supplier must submit a $50,000 surety bond to obtain Medicare billing privileges.

Suppliers who have certain adverse legal actions imposed against them in the past may be required to post a higher bond amount. The final regulations permit the NSC to require DMEPOS suppliers to obtain a base surety bond of $50,000 and an elevated surety bond of $50,000 for each occurrence of an adverse legal action within ten years preceding enrollment, revalidation or reactivation in the Medicare program.

A list of sureties from which a bond can be secured is found at the Department of the Treasury’s website. Some companies or organizations that supply DMEPOS are exempt from the surety bond requirements. Such exemptions include:

  • Certain physician and non-physician practitioners  
  • Physical therapists
  • Occupational therapists
  • State-licensed orthotic and prosthetic personnel
  • Government-owned suppliers

Contact NSC

Email National Supplier Clearinghouse

Contact a specific NSC department

Telephone: 866-238-9652

IVR: 866-238-9652


National Supplier Clearinghouse

Palmetto GBA, AG-495

P.O. Box 100142

Columbia, SC 29202-3142

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