The Department of Health and Human Services Office of the Inspector General has released a report detailing the failings of CMS on the use of surety bonds to recover overpayments made to fraudulent providers under the Medicare Part B program.
On January 2, 2009, The Centers for Medicare and Medicaid Services (CMS) published a final rule requiring all suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to obtain a surety bond in the amount of $50,000.00 per location and provide confirmation to CMS. The reasoning was to allow CMS an insurance policy against fraudulent providers and to ensure CMS could recover fraudulent payments after the fact.
In the more than 2 years since the final rule was published, CMS has yet to recover a single overpayment through the use of surety bonds. CMS has also not finalized the proceedures for recovering overpayments during this time period. MORE