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Home > SMT Wrapper

Bond Requirement Would Likely Hurt Small Providers, Observers Say

Published Monday, August 06, 2007

BALTIMORE--It was a case of déjà vu for many in the industry last week when HHS announced a proposed rule that would require all DMEPOS providers to supply CMS with a $65,000 surety bond (see HomeCare Monday, July 30). In 1997, the Balanced Budget Act mandated that providers obtain a $50,000 surety bond as a condition of Medicare enrollment. The next year, CMS--then called the Health Care Financing Administration--published a proposed rule that included the requirement, but it was never finalized. The bond was, and is, intended to curb fraud. So, will it? Stakeholder opinions are ...

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