If you’re a healthcare provider, you know that it’s essential to stay up-to-date on the latest changes in the industry. One recent change that providers should be aware of is the new DMEPOS bond requirements. But what are DMEPOS bonds, and why are they necessary? This article provides an easy guide to understanding DMEPOS bonds to ensure your business complies.
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What Are DMEPOS Bonds?
The history of DMEPOS (Durable Medical Equipment, Prosthetics, Orthotics, and Supplies) bonds dates back to 2009. At that time, there was a lot of concern about healthcare providers going out of business and leaving patients with unpaid medical bills. CMS began requiring providers to purchase DMEPOS bonds to protect patients from this risk.
DMEPOS bonds are a type of insurance that protects patients from financial loss if their medical equipment provider goes out of business or fails to deliver on its promises. The Centers set the bond amount for Medicare and Medicaid Services (CMS), which the provider must pay before it can be approved to sell DMEPOS products.
It’s always good to get enough information regarding the bonds. You can get details over the internet from reliable sources. Take time to find out more about the specific surety companies available. This helps you know how they work and why they’re efficient, also you should take a look at the general requirements as well.
Why Are DMEPOS Bonds Necessary?
The DMEPOS bond requirement was put in place to protect patients from financial loss if their medical equipment provider goes out of business or fails to deliver on its promises. By requiring providers to purchase a DMEPOS bond, CMS ensures that funds are available to refund patients should something go wrong.
To qualify for a bond, providers must have a clean credit history and no bankruptcies within the past five years. In addition, they must show that they have the financial resources to pay the bond amount if it is required.
While several surety companies can provide DMEPOS bonds, not all of them are created equal, and it’s essential to choose a company with a good reputation and a track record of success. The cost of bonds varies depending on the provider’s business model and the state in which they operate.
Where Can I Get a DMEPOS Bond?
There are a few different ways to get a DMEPOS bond. Providers can purchase the bond themselves or work with a surety company specializing in healthcare bonding.
If you decide to purchase the bond yourself, you’ll need to find an insurance company that offers bonds. You can typically find these companies online or by contacting your state’s insurance department.
If you decide to work with a surety company, they will help you find the best DMEPOS bond for your needs and assist you in applying. Surety companies typically charge a small fee for their services, but this is usually offset by the time and money they save.
How Does the Bond Application Work?
The first step in the bond application process is gathering all the required information. This includes your business’s financial statements, tax returns, and other relevant documentation.
Once you have all the required information, you’ll need to complete an application and submit it to the surety company. The surety company will then review your application and make a decision.
The surety company will provide you with a DMEPOS bond if approved. You’ll then need to sign the bond and pay the premium. The premium is typically a small percentage of the bond amount and is paid upfront.
How Do I Know If My Provider Has a DMEPOS Bond?
If you’re unsure whether your provider has a DMEPOS bond, you can contact CMS to find out. You can also ask your provider for a copy of their bond certificate. This document will list the name of the bonding company, the policy number, and the expiration date.
If your provider doesn’t have a bond, they may be subject to disciplinary action by CMS. This could include loss of their Medicare billing privileges or even criminal charges. Besides, their Medicare provider transaction access number (PTAN) may be deactivated. This means the provider will no longer be able to bill Medicare for services.
The provider can quickly know if the bond is active. They can check the status by searching for your NPI on the CMS website. If it’s active, it will be listed under “Bond Information.”
Why Are Dentists Required to Have DMEPOS Bonds?
Dentists are not explicitly required to have DMEPOS bonds, but they may be required to have a surety bond if they participate in Medicaid. CMS requires all Medicaid providers to have a surety bond before they can be reimbursed for care to Medicaid patients.
If you’re a dentist who participates in Medicaid, you’ll need to get a surety bond before you can start seeing patients. You can contact your state dental board or the CMS for more information on how to get bonded.
DMEPOS bonds are an essential part of the healthcare industry. They protect patients from financial loss if their medical equipment provider goes out of business or fails to deliver on its promises. If you’re a healthcare provider, it’s essential to make sure you have a bond in place so that you can continue to serve your patients.