$50,000 Surety Bond Required by CMS

On January 2, 2009, seventeen months after proposing the regulation and more than eleven years after the authorizing statute was enacted, the Centers for Medicare & Medicaid Services (CMS) issued final regulations requiring certain suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to post a surety bond of no less than $50,000.

HME businesses enrolling in the Medicare program for the first time and applying for a National Provider Identifier (NPI) number, responding to a revalidation or reenrolling request and those changing ownership must comply with the new regulation by May 4, 2009. Existing HME businesses currently enrolled must meet the requirement by October 2, 2009.

The regulation requires most HME firms to obtain a surety bond, although certain state-licensed HME personnel, and government-owned suppliers may be exempt from this CMS regulation.

(Please call 800-544-2672 for additional details regarding exemptions.)

AAHomecare makes applying for your
surety bond easy - and affordable.

AAHomecare has teamed up with two Aon business units (Affinity Insurance Services and Aon Surety Bond) to aid HME providers in securing their surety bond. Aon Affinity is the administrator of our member benefit insurance program. Aon is the world's leading insurance broker, and their surety bond unit has access to many nationwide surety bond carriers that are both highly rated by A.M. Best and listed by the US Treasury as an approved bond carrier.

Please access AAHomecare's surety bond application here.

Aon's bond carriers offer HME companies the following advantages.

  • Surety bond premiums as low as $250 (not all firms will qualify for this rate),
  • No financial statements required for some firms,
  • Available nationwide,
  • A master bond form aggregating multiple NPIs/locations,
  • Range of discounts apply for firms with multiple NPI numbers,
  • Most significant savings will apply for firms with 51-plus NPI's.

To assist HME companies affected by the CMS surety bond rule, including determining whether your firm must comply, CMS released a detailed list of "Frequently Asked Questions". You can read these FAQs here (Please click on the + symbol located next to the title "Surety Bond Requirements")

If you have any questions, please contact us at 1-800-544-2672