DMEPOS Medicare Supplier Bond

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.

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).

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.