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Last Updated:|Reflects current Medicare DME bond requirements
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CMS DMEPOS Enrollment Requirement

Medicare DME Supplier Bond

If you supply wheelchairs, oxygen equipment, CPAP machines, hospital beds, or any other durable medical equipment to Medicare beneficiaries, CMS requires a $50,000 surety bond before approving your enrollment. No bond, no Medicare billing privileges.

$50,000 Per Location
Fixed amount set by CMS
$500-$1,500/Year
With good credit (1-3%)
24-48 Hour Approval
Digital bonds available
CMS-855S Required
Filed with enrollment application
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CMS Bond Requirements Under 42 CFR

Official CMS Requirements

"Each DMEPOS supplier must obtain, at its own expense, a surety bond of not less than $50,000 for each practice location. The bond must name CMS as the obligee and must be issued by a surety company that is acceptable to the U.S. Treasury."
Centers for Medicare & Medicaid Services • 42 CFR 424.57(d) - DMEPOS Surety Bond Requirement

Official CMS Requirements

"The surety bond must be continuous. The surety must give CMS 30 days advance written notice before cancellation. Claims can be filed against the bond up to 2 years from the date CMS first learned of the violation."
Centers for Medicare & Medicaid Services • 42 CFR 424.57(d)(5) - Bond Terms

The DME bond requirement was added to the Social Security Act by the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA). CMS finalized the implementing rule in 2009. It applies to all DMEPOS suppliers regardless of size, including pharmacies that bill Medicare for DME items. The only exception is state-licensed orthotic and prosthetic personnel who furnish only custom orthotics and prosthetics.

DMEPOS Enrollment Checklist

1

Obtain Accreditation

Get accredited by an approved organization (ACHC, HQAA, BOC, Joint Commission). This typically takes 3-6 months and must be in place before enrollment.

2

Get Your $50,000 Surety Bond

Bond must name CMS as the obligee, reference your specific practice location address, be issued by a Treasury-listed surety company, and be continuous (not a term bond).

3

Complete CMS-855S Application

The DMEPOS supplier enrollment form. Include bond information in Section 5. Submit via PECOS (Provider Enrollment Chain and Ownership System).

4

Pass NSC Site Visit

The National Supplier Clearinghouse will conduct an unannounced site visit to verify you meet the 30 DMEPOS Supplier Standards. Your location must be an actual storefront.

5

Maintain Continuous Compliance

Keep your bond, accreditation, and enrollment current. Revalidate every 5 years. Report any changes within 30 days using CMS-855S Change of Information.

Frequently Asked Questions

Why does CMS require a surety bond for DME suppliers?
CMS implemented the DME bond requirement in 2009 to combat fraud in the DMEPOS program. Before the bond requirement, CMS estimated that over $1 billion per year was lost to fraudulent DME billing. The $50,000 bond serves as a financial barrier to entry that discourages fly-by-night operators and provides a recovery mechanism when suppliers commit fraud, overcharge Medicare, or fail to comply with program requirements.
Do I need a separate bond for each location?
Yes. 42 CFR 424.57(d) requires a separate $50,000 surety bond for each practice location where you furnish DMEPOS items. If you operate three locations, you need three bonds totaling $150,000 in coverage. Each location must have its own CMS-855S enrollment and its own bond. This applies even if two locations are in the same city.
What triggers a claim against my DME bond?
CMS can make a claim against your bond when you receive Medicare overpayments that you do not return, bill for equipment not delivered or not medically necessary, violate Medicare coverage policies or billing rules, fail to meet DMEPOS quality standards, or have your Medicare billing privileges revoked. CMS has 2 years from the date it discovers the violation to file a claim against the bond.
What is the CMS-855S and how does the bond fit in?
Form CMS-855S is the enrollment application for DMEPOS suppliers. Section 5 of the form requires you to provide your surety bond information, including the surety company name, bond number, and effective date. CMS will not approve your enrollment without a valid bond in place. The bond must name CMS as the obligee and must reference the specific practice location address.
Can I get a DME bond with a low credit score?
Yes. While credit below 600 means higher premiums (typically 3-10% instead of 1-3%), bonds are available through specialized programs. For a $50,000 bond, that means paying $1,500-$5,000 per year instead of $500-$1,500. Some sureties will also require collateral (a deposit equal to a percentage of the bond amount) for high-risk applicants.
When does the bond need to be in place relative to my enrollment?
The bond must be in place before CMS approves your enrollment. It must also be continuously maintained. If your bond lapses, CMS will revoke your billing privileges. During revalidation (every 5 years), CMS verifies your bond is still active. Set up auto-renewal with your surety company to prevent accidental lapses.

Related Federal Bonds

Transportation Broker Bond

$75,000 FMCSA freight broker authority bond

Customs General Bond

CBP continuous bond for importing medical devices

Contractors License Bond

State contractor compliance bonds

Written by BuySuretyBonds.com
Surety bond specialists operating nationwide with direct integrations to Treasury-certified surety carriers. Our platform enables instant approval for license and notary bonds, with 24-48 hour underwriting for commercial bonds. All content is researched from official state and federal sources (.gov) and reviewed by bond industry experts.

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