If you sell medical equipment or supplies to Medicare patients and bill Medicare for payment, you must post a $50,000 surety bond for each National Provider Identifier (NPI) number you hold. This federal requirement protects Medicare from unpaid claims and penalties if your business fails to comply with Medicare regul…
Overview
What it is.
If you sell medical equipment or supplies to Medicare patients and bill Medicare for payment, you must post a $50,000 surety bond for each National Provider Identifier (NPI) number you hold. This federal requirement protects Medicare from unpaid claims and penalties if your business fails to comply with Medicare regul…
Who usually needs it
Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers who participate in Medicare and bill for reimbursement. This includes suppliers of wheelchairs, oxygen equipment, diabetic supplies, prosthetics, orthotics, and related medical equipment.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$50,000ObligeeCenters for Medicare & Medicaid Services (CMS)Bond classLicense BondCategoryHealthcareBondDMEPOS Medicare Supplier BondPlain descriptionIf you sell medical equipment or supplies to Medicare patients and bill Medicare for payment, you must post a $50,000 surety bond for each National Provider Identifier (NPI) number you hold. This federal requirement pro…Who needs this bondDurable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers who participate in Medicare and bill for reimbursement. This includes suppliers of wheelchairs, oxygen equipment, diabetic supplies, pro…
FAQ
Common questions.
What is the DMEPOS Medicare Supplier Bond requirement?
The DMEPOS Medicare Supplier Bond is a $50,000 surety bond required by the Centers for Medicare & Medicaid Services (CMS) for each National Provider Identifier (NPI) you maintain. This federal requirement under 42 CFR § 424.57 applies when enrolling in Medicare, establishing a new practice location, or changing ownership. The bond must remain continuous throughout your Medicare participation and guarantees payment of unpaid claims, accrued interest, and civil monetary penalties.
Who is exempt from the DMEPOS bond requirement?
Certain DMEPOS suppliers are exempt from the $50,000 surety bond requirement, including: government-operated DMEPOS suppliers that have a comparable state law bond, state-licensed orthotic and prosthetic personnel, and physicians who provide DMEPOS items solely to their own patients. If you're unsure whether your business qualifies for an exemption, consult with CMS or your Medicare Administrative Contractor (MAC).
What happens if my DMEPOS bond lapses or is canceled?
If your DMEPOS bond lapses or is canceled, CMS will revoke your Medicare billing privileges unless you provide a new bond before the cancellation effective date. The bond must remain continuous and in effect for as long as you participate in Medicare. Suppliers with adverse legal actions in the past 10 years may be required to post an elevated bond of $50,000 for each occurrence in addition to the base $50,000 bond amount.
