Why Do I Need A Medicare Surety Bond?
Medicare Surety Bonds are required for businesses who plan to bill Medicare for DMEPOS (Durable Medical Equipment, Prosthetics, Orthotics, and Supplies) who have an NPI number or if you plan to attain one. This has now become a requirement by Medicare to help reduce fraud and is mainly for higher risk companies as there are some exceptions. The deadline to have a Medicare Surety Bond in place is October 2, 2009 and must be valued at $50,000.Medicare is not making this requirement public unless your company is a high risk and you don’t meet one of the exemptions. The bond company you choose will help you to determine if you qualify for an exception or not. Since the bond is more like a line of credit than a loan, your credit history and net worth will determine your eligibility for the bond or how much you will have to pay. Most companies require that your equity is at least five times the bond amount and that you have a 670 or higher credit score. This varies by state but is a good starting point if you need a rough estimate.