LEEDer Group Inc.
8508 North West 66th St.
Miami, Florida 33166 USA

Phone: 305.436.5030
Fax: 305.436.0086
E-mail Address: info {at] LEEDerGroup [dot] com

2012-05 Overpayment Recovery from Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)

MLN Matters® Number: MM7744 Related Change Request (CR) #: CR 7744 Related CR Release Date: April 20, 2012 Effective Date: May 20, 2012 Related CR Transmittal #: R208FM Implementation Date: May 20, 2012
Overpayment Recovery from Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)
  • Provider Types Affected
    This MLN Matters® Article is intended for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers that are required to obtain and maintain a surety bond as a condition of their enrollment in the Medicare program.
  • Provider Action Needed
    This article is based on Change Request (CR) 7744, which outlines the procedures for the Centers for Medicare & Medicaid Services (CMS) and its DME Medicare Administrative Contractors (DME MACs) to make a claim against a DMEPOS supplier’s surety bond. Be certain you are aware of this information.
  • Background
    In order to enroll in and to remain enrolled in the Medicare program, DMEPOS suppliers must obtain and maintain a surety bond in the amount of $50,000 (unless an elevated bond amount is required) under 42 Code of Federal Regulations (CFR) Section 424.57(d).
  • Key Points
    According to 42 CFR Section 424.57(d), a surety must pay CMS, within 30 days of receiving written notice to do so, the amount of any unpaid claim, plus accrued interest, for which the DMEPOS supplier is responsible up to the full penal sum of the bond. A surety is liable for any overpayments incurred during the term of the surety bond. This includes overpayment determinations made on or after the surety bond effective date. These overpayment determinations can relate to payments made on or after March 3, 2009.
  • Additional Information CLINK LINK BELOW
    The official instruction, CR7744, issued to your DME MAC regarding this change, (This Link Now Broken)
    on the CMS website.
    If you have any questions, please contact your DME MAC at their toll-free number, which may be found at on the CMS website.
    Medicare’s surety bond requirements are summarized in detail in article MM6392 on the CMS website.