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Bond Information for Durable Medical Equipment Suppliers

The Federal government requires all Durable Medical (DMEPOS) suppliers to secure a $50,000 bond in compliance with Medicare reimbursement regulations.

As outlined in the legislature this includes providers of the following:

  • durable medical equipment

  • prosthetics

  • orthotics and supplies

From July 16, 2019 through September 18, 2019, DMPEO providers who have obtained the DMEPOS bond can participate in a national competitive bidding. In 2021, following the bid window, 3-year contracts will be awarded. 


More Information about the DMEPOS Bond Program

  • There are currently 130 competitive bidding areas (CBAs) in the US.

  • Each CBA requires one bid bond – even if a supplier bids on all 16 of the varying products within a CBA.

  • Multiple bidders for the same CBA product can be eligible for contracts: in the event there are 5 or more qualified bidders for the same CBA product, a minimum of 5 contracts will be awarded; if there are less than 5, a minimum of 2 contracts will be awarded.


PRIME Insurance can assist the DMEPOS providers with the above bonds, as well as any other commercial bond.



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Summary: Durable Medical Equipment suppliers must procure a $50,000 bond in compliance with Medicare reimbursement requirements. Prime Insurance highlights more on the bond program in this insightful write-up.


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