There is a Medicare surety bond requirement is like an insurance policy for Medicare. The Medicare system can collect money from the bond if medical supply suppliers do not follow through on their obligations charged to Medicare. In the past there have been wide-spread frauds of unnecessary charges to the Medicare system and this new plan is supposed to stop the criminals from using the system.
To buy a medicare surety bond, the price is estimated to be about 3% of the overall amount of the bond. Right now, bonds must be for 50,000 dollars, and one bond must be purchased for each medical supply supplier’s location in a chain. The bond providers must be chosen from a list that is put together by the government. Bond sellers are allowed to refuse service, or to charge bad credit ratings more for their required Medicare surety bond.