You may have recently been notified that Medicare/Medicaid now requires some suppliers of durable medical equipment (DME) to carry a Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Surety Bond. This requirement was put in place by the Centers for Medicare & Medicaid Services (CMS) to protect Medicare/Medicaid from any unpaid claims. In the case of an unpaid claim, Medicare/Medicaid can make a claim on the DMEPOS bond. At that point, the Surety would make the payment, up to the bond amount, to settle the claim. The Surety would then, in turn, attempt to collect the paid amount from the DMEPOS supplier.
If you are subject to this requirement, a bond amount of $50,000 is necessary. Fortunately, MDA Insurance can assist you in obtaining this coverage, which is available through Auto-Owners Insurance. To request an application, call MDA Insurance at (800) 860-2272 and speak with Jen Goss. The annual premium for a $50,000 DMEPOS Surety Bond with Auto-Owners is $261.