Not so sure about bond

Thursday, April 30, 2009

I would like to share my strong concerns about, what I believe to be, misleading information being published in recent editions of HME News regarding the surety bond requirement.

The “sources” as stated in your articles indicate that the estimated expense for this bond is $1,500 per year. My correspondence indicates that the expense is five times the amount your “sources” are quoting. I think the industry would like to know who these sources are since my sources are giving me completely different estimates.

If the surety bond requirements are mandated to $500,000 a year, the $1,500 per year expense your “sources” are quoting would be more like $75,000 a year, not to mention that most major insurance carriers don’t even write the bond.

-- David Heaton, First Class Medical Equipment and Supply, Houston

Editor’s Note: On p. 143 of CMS’s surety bond rule, it states: “We do not believe that the annual cost of a surety bond ($1,500) would have an economic impact.”