Monday, June 9, 2014
On May 16, the Centers for Medicare & Medicaid Services released Change Request (CR) 8636, updating the procedures used in the surety bond collection process for durable medical equipment suppliers. The CR 8636 revised procedures for suppliers in making a claim against a surety bond. The revised changes are below:
- If 45 days have passed since the initial demand letter was sent to the DMEPOS supplier, full payment has not been received, and the supplier has a surety bond, the Durable Medical Equipment Medicare Administrative Contractor (DME MAC) will send an “Intent to Refer” (ITR) letter to the supplier and a copy thereof to the supplier’s surety. The letter and copy will be sent no earlier than the 45th day and no later than the 60th day after the initial demand letter was sent.
- If the DME MAC does not receive full payment from the supplier within 30 days of sending the ITR letter, the contractor will notify the surety via letter that payment of the claim must be made to CMS within 45 days from the date of the surety letter. The DME MAC will send the surety letter no earlier than 30 days and no later than 75 days after sending the ITR letter.
- Between eight and 12 calendar days after sending the surety letter, the DME MAC will contact the surety by telephone or e-mail to determine whether the surety received the letter.
- If the surety fails to make full payment within the 45-day timeframe, the DME MAC will continue collection efforts and notify the appropriate Center for Program Integrity liaison via e-mail of the surety’s failure to make payment.
