The Centers for Medicare & Medicaid Services (CMS) is requiring certain durable medical equipment suppliers to post a surety bond. In addition, CMS has revoked the billing privileges of more than 1,100 medical equipment suppliers in Florida and California, among others. CMS issued a final surety bond regulation, required by the Balanced Budget Act of 1997, that requires certain suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to post a $50,000 surety bond. Existing suppliers must comply with the requirement by October 2, 2009, while newly enrolling suppliers must meet this requirement by May 4, 2009. The surety bond requirement is designed to limit the risk to the Medicare program from fraudulent equipment suppliers and to help ensure that those suppliers that remain in the program furnish only reasonable and necessary items to Medicare beneficiaries. Suppliers that have had certain adverse legal actions imposed against them in the past also may be required to post a higher bond amount. All newly enrolling suppliers covered by the rule will be required to have a surety bond in place before they can enroll in the Medicare program. Please read the entire rule here.