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What's New: Advocacy

SFAA Persuades CMS Not to Adopt Rules for Rejecting Bonds for DMEPOS Suppliers from Sureties ...

Thursday, September 12, 2019  

SFAA Persuades CMS Not to Adopt Rules for Rejecting Bonds for DMEPOS Suppliers from Sureties with Unpaid Claims

In response to comments from SFAA and our work with the Commercial Surety Advisory Committee, the Centers for Medicare and Medicaid Services (CMS) has decided not to adopt an onerous proposed rule allowing it to reject bonds required for suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) from certain sureties, under certain circumstances. Generally, the proposed rule would have allowed CMS to reject a surety bond if the surety previously failed to pay a claim when required. Our comments asserted that the proposed rule fell short with respect to the procedural requirements to reject or, essentially, debar a surety, which are established by statute and regulation. In addition, we explained that the proposed rule would have made the bond into a demand obligation, lacked adequate due process, and could have had a negative effect on the bond’s availability.

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