DMEPOS Bond: Requirements, Cost & Renewal Guide

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Prefer a quick summary before you apply? View our DME Bond hub.

Whether you’re enrolling as a new Medicare DMEPOS supplier or renewing your existing bond, you’ll need a $50,000 DMEPOS Bond for each practice location. The Centers for Medicare & Medicaid Services (CMS) requires this surety bond as part of Medicare enrollment.

Additionally, understanding your bonding requirements can help you avoid enrollment delays and stay compliant with CMS’s supplier standards.

Once you’re ready to apply, American Surety Bonds Agency makes it easy to complete a secure online bond application in just a few minutes. Apply today, and most applicants can receive their approval the same day.

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The DMEPOS Bond goes by several names depending on where you look. You may also see it called:

• DME Bond
• Medicare DME Bond
• Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Bond
• DME Supplier Bond

These all refer to the same $50,000 surety bond described on this page. DMEPOS Bond is simply the fuller name matching CMS’s own term for this supplier category.

The Centers for Medicare & Medicaid Services (CMS) requires this surety bond before it will enroll a Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) supplier in Medicare.

Specifically, the bond gives CMS a source of recovery if a DMEPOS supplier is overpaid or bills improperly and fails to repay the government, up to $50,000 per practice location.

However, unlike traditional insurance, this bond doesn’t protect the supplier’s business. It protects the Medicare program instead, by standing behind the supplier’s obligation to repay what it owes.

You need this bond if you are:

• Applying for your first Medicare DMEPOS supplier enrollment
• Renewing your existing Medicare DMEPOS supplier enrollment
• Adding a new DMEPOS practice location to your existing enrollment

Because CMS ties this bond directly to your Medicare billing privileges, you must maintain an active bond at each practice location to stay enrolled in good standing.

A few categories of suppliers are exempt from this requirement (42 CFR § 424.57(d)(15)(i)), including:

• Government-operated suppliers that already hold a comparable bond under state law
• Solely-owned, state-licensed orthotic or prosthetic private practices that do their own custom fabrication and bill only for the orthotics, prosthetics, and supplies provided to their own patients
• Physicians and nonphysician practitioners furnishing DMEPOS only to their own patients as part of their professional service
• Solely-owned physical or occupational therapy private practices billing only for the orthotics, prosthetics, and supplies they provide to their own patients

If you’re not sure whether one of these exemptions applies to your business, contact us and we’ll help you confirm.

This bond helps protect the Medicare program from fraud, overbilling, and unpaid overpayments.

As a result, requiring DMEPOS suppliers to maintain a surety bond, CMS helps:

• Recover funds when a supplier is overpaid and doesn’t repay Medicare
• Encourage DMEPOS suppliers to follow Medicare’s billing and supplier standards
• Protect the integrity of the Medicare program for patients and taxpayers

Ultimately, by maintaining an active bond, DMEPOS suppliers demonstrate their commitment to complying with federal law and protecting the Medicare program they bill.

The required bond amount is $50,000 per practice location. This is the maximum available to cover eligible claims, not what you pay out of pocket. Most applicants pay a small fraction of that as their premium.

Rates start as low as $438 for a two-year term, and other programs are available for applicants who don’t fit that starting tier.

For example, your premium may depend on:

• Personal credit history
• Net worth
• Business experience

At American Surety Bonds Agency, we work with a wide array of markets, from preferred clients to non-traditional clients and everyone in between, to help find the right rate for your DMEPOS Bond.

This bond stays in force for as long as your Medicare DMEPOS enrollment is active, with your premium due each year to keep it current. Because it’s tied to your federal Medicare enrollment rather than a state license cycle, it renews on its own premium anniversary each year rather than one fixed calendar date. Keep your premium current so your bond stays active without a lapse, protecting your Medicare billing privileges in good standing.

Although most bond renewals can be completed quickly, it’s a good idea to begin the process weeks before your premium deadline. That way, you’ll have time to respond to any underwriting requests, if necessary, and keep your bond continuously in force — CMS revokes your Medicare billing privileges for any gap in coverage, even a brief one.

Obtaining your bond through American Surety Bonds Agency is simple.

1. Complete the online application for the DMEPOS Bond.
2. Our underwriting team will review your application and contact you if any additional information is needed.
3. Review your approval and pay to finalize your bond.
4. Receive your completed DMEPOS Bond to submit with your Medicare enrollment or revalidation.

With your bond in place, you’ll be ready to keep your Medicare DMEPOS enrollment in good standing.

American Surety Bonds Agency has been helping businesses meet their surety bond requirements for decades. Whether you’re applying for your first license or renewing an existing one, our experienced team is here to help make the bonding process simple and efficient.

When you choose American Surety Bonds Agency, you’ll receive:

• Experienced surety bond professionals
• Competitive rates from leading surety companies
• Fast underwriting and responsive customer service
• A secure online application process
• Assistance throughout the bonding process

Above all, our goal is to make the bonding process straightforward, so you can move forward with confidence.

American Surety Bonds Agency makes obtaining your bond simple, competitive, and hassle-free.

Apply today and keep your Medicare billing privileges in good standing.

Start Your DMEPOS Bond Application

We offer a wide variety of license and permit bonds for regulated businesses nationwide.

Whether you need one bond or several, our experienced team is here to help.

Explore All License and Permit Bonds

Need a DMEPOS Bid Bond?

If you’re bidding on a contract area under CMS’s Competitive Bidding Program, you’ll need a separate DMEPOS Bid Bond in addition to this one.

Contact us for more information and a member of our team will help you understand the current bidding requirements.

Read Our DMEPOS Bid Bond Guide

Does Your State Require an Additional Bond?

A few states require an additional, separate bond to enroll as a DME provider in their state Medicaid program, on top of this federal bond.

View DME State Bond Requirements

Complete our simple online application, or speak with one of our surety specialists today.

American Surety Bonds Agency proudly serves businesses nationwide with fast approvals, competitive rates, and responsive service.

American Surety can also assist you with any of your other bonding needs, as we are licensed in all 50 states.  Call us today at (404) 486-2355 or our toll-free number (877) 201-8976 or find us on Facebook, Twitter, or LinkedIn!