Who needs Durable Medical Equipment And Pharmacy Bonds?
Durable Medical Equipment and Pharmacy Bonds are required for certain businesses that distribute prescription or non-prescription drugs, medical equipment, or medical supplies. In many states, this bond is required to obtain or renew a license as a pharmaceutical wholesaler, distributor, or medical equipment supplier.
If you plan to bill Medicare for durable medical equipment, prosthetics, orthotics, or supplies (commonly referred to as DMEPOS), you will also need this bond before you can receive approval to bill the Medicare program.
This bond is required by the government agency that oversees your license or Medicare enrollment. It provides a financial guarantee that your business will follow applicable regulations and operate in compliance with licensing requirements. If your business violates those requirements and causes financial harm, a claim can be made against the bond. If a claim is paid, you are responsible for reimbursing the bonding company.
How much do Durable Medical Equipment And Pharmacy Bonds cost?
The cost of a Durable Medical Equipment or Pharmacy Bond is a small percentage of the required bond amount. Most applicants pay between 1% and 5% of the bond amount annually, depending on credit profile and financial strength.
For businesses billing Medicare under DMEPOS, the required bond amount is $50,000 per National Provider Identifier (NPI). Well-qualified applicants may pay as little as a few hundred dollars per year. Applicants with lower credit scores may pay a higher rate, but approval is still possible.
Your exact premium is determined after a short application review. There is no cost to request a quote.
How do I get a Durable Medical Equipment And Pharmacy Bond?
Getting a Durable Medical Equipment or Pharmacy Bond is a straightforward process:
- Complete a short online application.
- Receive a quote based on your credit and business information.
- Pay the premium.
- Receive the bond for filing with the appropriate licensing authority or Medicare.
Can I get a Durable Medical Equipment And Pharmacy Bond with bad credit?
Yes, many applicants with less-than-perfect credit are still able to obtain this bond.
While applicants with stronger credit profiles typically receive the lowest rates, lower credit does not automatically disqualify you.
How fast can I get Durable Medical Equipment And Pharmacy Bonds?
In most cases, bonds can be issued quickly once your application is reviewed and payment is received. Many applicants receive a same-day quote, and bonds are often issued shortly after approval.
If you are working against a licensing or Medicare deadline, let us know. We will move as quickly as possible to help you stay on track.
Are there any local requirements?
Requirements can vary by state and by the specific license you hold. Some states require this bond for pharmaceutical wholesalers or distributors, while others require it only for certain medical equipment suppliers.
If you are enrolling as a DMEPOS supplier to bill Medicare, the bond is required as part of your Medicare approval process and must be maintained as long as you participate in the program.
Because requirements can differ depending on your business structure and location, it is important to confirm the correct bond form and amount before filing.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
