Headline News
AAHomecare Challenges Surety Bond Proposal
WASHINGTON--The American Association for Homecare submitted comments on Friday calling on CMS to revise its proposed surety bond rule to target those most likely to pose risks to Medicare.
Under the Balanced Budget Act of 1997, Congress mandated the surety bond requirement and CMS attempted to implement it in 1998, then proposing that providers put up a $50,000 bond. But the rule was never finalized, so CMS is trying again and has adjusted the amount for inflation. (See HomeCare Monday, July 30.)
Under the proposed rule, which was published Aug. 1 in the Federal Register, an HME provider would be required to obtain a $65,000 surety bond for each of its National Provider Identification numbers as a condition of enrollment in Medicare. The rule aims to curb fraud and abuse by ensuring that only legitimate providers are enrolled in the program.
The proposal has not been embraced by providers. In a HomeCare Web poll in August, 70 percent of those participating said the $65,000 bond proposal was a bad idea: 45 percent said they were honest providers but couldn't afford the additional costs, and another 25 percent said they thought government contractors should be held accountable for rooting out fraud.
While the American Association for Homecare believes that every effort should be made to eliminate fraud and abuse in the industry, it also believes that the surety bond would be "more punitive than effective," said Walt Gorski, vice president of government relations.
"Our comments reflect the changing nature of the Medicare program since surety bonds were [first] called for by Congress in 1997," he said. "Since that time, Medicare has implemented new quality standards and accreditation requirements and computer systems have become far more advanced to root out fraud and abuse. We believe that CMS must more effectively use the tools that are currently on the books rather than heap another set of requirements on suppliers.
"This is why the main thrust of our comments recommend that CMS apply the surety bond requirement only to new suppliers entering the marketplace," Gorski added.
