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Half-Million Dollar Surety Bond Requirement Would Put Many Small Durable Medical Equipment Providers Out Of Business
Caregivers / Homecare A Senate bill introduced last week would impose a $500,000 surety bond requirement on providers of durable medical equipment (DME) under Medicare and would put thousands of small homecare companies out of business, says the American Association for Homecare. A law passed in 1997 requires a $50,000 surety bond for DME providers as a deterrent to fraud and abuse. However, the federal government has never actually implemented the surety bond requirement for the DME sector.
