Medicare and Medicaid medical suppliers in California and nationwide are regulated by the Centers for Medicare and Medicaid Services.
To be approved as a medical supplier, a business must first be authorized by this federal entity.
Since California operates both a Medicare and its own Medicaid program (not all states offer Medicaid) , this single license allows for the supplying of medical equipment to both medical groups.
DMEPOS is an acronym which stands for: durable, medical, equipment, prosthetics, orthotics, and supplies---which is exactly the equipment and other items which are sold by medical suppliers under this program.
The California DMEPOS bond is interchangeably referred to as a California Medicare bond, and a California Medicaid bond; they both mean the same.
The bond is required by the Centers for Medicare and Medicaid Services.
The bond is required primarily to as a stop-gap measure to prevent criminal, fraudulent, and willfully negligent acts of malfeasance on the part of medical suppliers.
In the early 2000’s, there were instances in which Medicare and Medicaid had been over billed in the many millions of dollars. The problem had become both systemic and on a national level.
Consequently, in 2009 this bond was first required and it has been required since then.
A DMEPOS surety bond has a minimum amount of $50,000.
We refer to this as the floor amount of the bond, because while it cannot be any lower than $50,000, the bond may be higher.
The required bond amount will be determined by the number of National Provider Identifiers (NPI’s) of a business. A business with 10 NPI’s would be required to post a $500,000 surety bond for all locations.
Manufacturers of medical equipment such as prosthetics and orthotics are exempt from this bond requirement, as are suppliers who are government-owned.
Finally, physicans who supply medical equipment in the course of their business, and to their patients are likewise exempt from the bond requirement.
Applicants will pay nowhere near the $50,000 face bond amount for this surety bond.
The cost of the surety bond will, ultimately, be determined by the following:
Applicants with lower credit scores should not in anyway feel hesitant to contact AmeriPro Surety Bonds.
Our agency will work with you to obtain the required DMEPOS bond; however, please be aware that the premium, depending on your credit score and our underwriting guidelines used, may be substantially higher.
We also provide surety bonds nationwide.