Medicare Surety Bond Coverage

 

About DMEPOS Surety Bonds

A DMEPOS surety bond is a bond issued by an entity (the surety) guaranteeing that a DMEPOS supplier will fulfill an obligation or series of obligations to a third party (the Medicare program). If the obligation is not met, the third party will recover its losses via the bond.

Surety Bonds at No Cost to You

For purposes of the surety bond requirement, the U.S. Department of Treasury keeps a list of certified surety bond companies, one of which is the Thomas & Farr Insurance Agency. These companies are considered “authorized” sureties, and are therefore the only sureties from which a bond may be obtained.

LIPA has partnered with Thomas & Farr Insurance Agency to provide the DMEPOS Medical Bonds required by Medicare Part B. We've been able to negotiate a group discount for the surety bonds for our member pharmacies participating in DMEPOS. 

As a LIPA member benefit, the $1,500 annual cost of these surety bonds are covered by your LIPA membership dues and provided to you at no cost.

General Process for Obtaining a Surety Bond

To take advantage of this member benefit, call LIPA staff at (225) 308-2030 , toll free at (866) 266-1334 or email us at communications@lipanow.org and request that a surety be setup for you store. From there, LIPA will contact Thomas & Farr to begin the process and confirm that your pharmacy is eligible as a member for LIPA to cover the annual cost of the bond. Upon confirmation, an agent from Thomas & Farr will contact you and request the necessary information for completing the registration process.

Additional Information:

Most pharmacies will need to obtain accreditation to participate in the DMEPOS program. Even those pharmacies that are only billing Part B drugs (and therefore do not need accreditation) must obtain a surety bond, if it bills the DME MAC.