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NEWSFLASH - January 1, 2009 - Washington, DC
CMS REQUIRES DME/HME PROVIDERS TO OBTAIN $50,000 SURETY BONDS
In an effort to fight Medicare waste, fraud and abuse, the Centers for Medicare and Medicaid Services (CMS) released a new mandate on December 29, 2008 requiring Durable Medical Equipment (DME) and Home Medical Equipment (HME) companies to provide a $50,000 surety bond in order to be eligible to participate in Medicare. This requirement is
effective October 2, 2009 for existing DME and
HME companies and May 1, 2009 for all new DME/HME providers. To emphasize the commitment by the CMS to stem Medicare fraud that has been especially egregious in South Florida and California, over 1,100 providers have had their participation privileges revoked. It is anticipated that with the implementation of this mandated surety bond, not only will significant savings be realized but unethical and fraudulent operators will be eliminated from the marketplace.
In recognition of the need to expedite compliance with this important mandate, as well as its potential impact on our current and future DME/HME clients, Sabal Insurance Group has negotiated with several sureties to offer competitively priced surety bonds.
We would welcome an opportunity to provide additional information on the new rules and regulations governing these bonds as well as information on how to cost effectively meet these newly mandated requirements. We would encourage you to contact us at Sabalinsurance.com or 1-800-716-9948.
To apply for a bond,
simply download our shortform surety application and send back to us via fax or scan. Thank You.