$50,000 Medicare DMEPOS bond,
filed the same day you apply.
The CMS bond required by 42 CFR 424.57 for every DMEPOS supplier location that bills Medicare. Premium from $500 per year for well-qualified suppliers. Electronic filing direct to CMS PECOS.
- Same-day issuance on CMS-approved form
- Multi-location supplier pricing
- PECOS-ready PDF delivered by email
The federal bond CMS requires for every DMEPOS location.
A Medicare DMEPOS surety bond is a $50,000 financial guarantee filed with the Centers for Medicare & Medicaid Services (CMS) under 42 CFR 424.57. It protects the Medicare Trust Fund from losses caused by a supplier's fraud, overpayments, or civil monetary penalties.
Every supplier of durable medical equipment, prosthetics, orthotics, and supplies — wheelchair vendors, oxygen suppliers, diabetic supply companies, CPAP providers, orthotic shops, and similar businesses — must post one $50,000 bond for each physical practice location with its own National Provider Identifier (NPI). A supplier billing Medicare from three Houston addresses needs three bonds.
The bond is continuous. It stays in force for as long as the supplier maintains DMEPOS billing privileges. Cancellation triggers automatic revocation of Medicare enrollment unless a replacement bond is filed before the effective date.
Credit-tiered premium per $50,000 bond, per location.
CMS DMEPOS bonds are credit-reviewed. Well-qualified applicants pay near the floor. Challenged applicants pay up to 3% of the bond amount.
| Applicant profile | Annual premium | Rate on bond |
|---|---|---|
| Preferred credit 720+ FICO, clean Medicare history | $500 | 1.0% |
| Standard credit 660–719 FICO | $600–$800 | 1.2–1.6% |
| Fair credit 620–659 FICO | $900–$1,200 | 1.8–2.4% |
| Challenged credit Below 620 or recent adverse history | $1,250–$1,500 | 2.5–3.0% |
Multi-location supplier groups receive blended pricing across the book. Call for a tailored quote.
Four steps, same day, CMS-ready.
- 01
Quote the bond
Call or start online. Provide supplier name, NPI, each practice location, and ownership structure. Soft credit pull for pricing.
- 02
Sign & pay
Electronic application, indemnity agreement, and payment. About ten minutes per bond.
- 03
Receive CMS-approved bond
Bond emailed same day on the CMS-approved form (CMS-10189), executed and surety-sealed, ready to upload into PECOS.
- 04
File with CMS PECOS
Upload the bond PDF into your PECOS enrollment record or send to your National Supplier Clearinghouse (NSC) contact. Billing privileges stay active once filed.
Federal statute, issuing agency, what the bond covers.
42 CFR 424.57 requires every Medicare-enrolled DMEPOS supplier to post a $50,000 surety bond per practice location as a condition of enrollment. The rule was established under the Medicare Modernization Act of 2003 and implemented in 2009.
Centers for Medicare & Medicaid Services (CMS), through the National Supplier Clearinghouse (NSC). Enrollment filings go through PECOS.
$50,000 per physical practice location with its own NPI. One bond per NPI/address combination.
Continuous. Remains in force until canceled with 30 days written notice to CMS. Cancellation without a replacement triggers revocation of billing privileges.
CMS, to recover unpaid Medicare overpayments, civil monetary penalties, or fraud-related recoveries from the supplier. Private parties cannot claim directly.
Medicare bonds are picky. We know the form.
CMS-approved sureties
We place every bond with a Treasury-listed surety. CMS will not accept a bond from a non-approved company — we keep that list current.
Multi-location pricing
Supplier groups with multiple Texas locations get blended pricing across the book, not location-by-location retail rates.
Continuous renewal handling
These bonds are continuous. We manage the anniversary billing so your Medicare billing privileges never lapse.
Other healthcare and licensing bonds we write.
DMEPOS bond questions we answer every week.
How much does a Medicare DMEPOS bond cost?
The CMS bond amount is $50,000 per practice location. Annual premium typically ranges from $500 for well-qualified suppliers (strong credit, clean claims history) to $1,500 for applicants with credit challenges. Multi-location premium pricing is available for supplier groups.
Who is required to post a Medicare DMEPOS surety bond?
Any Medicare-enrolled DMEPOS supplier — durable medical equipment, prosthetics, orthotics, and supplies — must post a $50,000 bond per location as a condition of enrollment under 42 CFR 424.57. A separate bond is required for each National Provider Identifier (NPI) and physical business address.
How long does the DMEPOS bond last?
The bond is continuous and must stay in force for as long as the supplier holds Medicare DMEPOS billing privileges. Cancellation requires 30 days written notice to CMS and will trigger revocation of billing privileges if a replacement bond is not filed.
Is an accredited supplier exempt from the bond?
No. Accreditation through a CMS-approved accreditation organization is a separate requirement. All DMEPOS suppliers — accredited or not — must post the $50,000 bond. The only exemptions are for certain state-licensed practitioners (physicians, physical therapists) supplying equipment within the scope of their practice.
What happens if Medicare files a claim against my DMEPOS bond?
CMS can claim against the bond to recoup unpaid overpayments, civil monetary penalties, or fraud-related recoveries from the supplier. The surety pays CMS up to $50,000 and then collects that amount back from the supplier. Claims typically follow Medicare audits that identify billing errors or fraud.
Do I need a separate bond for each Texas location?
Yes. 42 CFR 424.57 requires one $50,000 bond per physical practice location with its own NPI. A supplier with three Texas storefronts needs three $50,000 bonds. We can write all the bonds in one application.
Can I get a DMEPOS bond with bad credit?
Yes, though pricing adjusts with credit. Well-qualified suppliers pay around $500 per year. Suppliers with challenged credit or recent adverse Medicare history pay $1,000 to $1,500 per year. We work with multiple CMS-approved sureties to place difficult applicants.
Get your Medicare DMEPOS bond today.
Same-day issuance. CMS-approved sureties. Multi-location supplier pricing. Talk to a real Texas agent.