tci Medicare Compliance & Reimbursement - 2008 Issue 8

Legislation: Congress Drops Surety Bond Bomb

Senator pushes for ten-fold increase in bond amount A new Senate bill could be the beginning of the end for small suppliers of home medical equipment. The bill, the Medicare Fraud Prevention Act of 2008 (S. 2603), seeks to impose a $500,000 surety bond requirement on Medicare-certified providers of durable medical equipment. Sen. Mel Martinez (R-FL) introduced the bill on Feb. 7. Co-sponsors include Sens. John Cornyn (R-TX), Norm Coleman (R-MN), Lamar Alexander (R-TN), David Vitter (R-LA) and Jim DeMint (R-SC). The requirement would put thousands of small home care companies out of business, warn industry representatives including...

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