CMS Home Care Surety Bond Practices Could Drive Companies Out of the Business
A collection of groups and companies associated with the home care industry are requesting the Centers for Medicare and Medicaid Services (CMS) to address problems associated with its Medicare DMEPOS surety bond program.
The participants — AAHomecare, VGM, The Wayne van Halem Group, Bond Safeguard, Lexon Surety, US Rehab and VGM Insurance Group — are asking CMS to allow the DME MACs to only trigger a surety bond if a threshold dollar amount is reached as well as other changes.
“If the program continues in its current form, there is great concern that surety bonds will become very hard to underwrite, forcing surety companies to exit this line of business, thus reducing
the supply of surety bonds,” said the group. “That would drive up the cost to an amount not manageable for the typical Home Medical Equipment (HME) provider.”
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Written by John Yedinak