ATTENTION ALL O&P BUSINESS OWNERS! $50,000 Surety Bond Required by CMS

On January 2, 2009, seventeen months after proposing the regulation and eleven years after the authorizing statute was enacted, the Centers for Medicare & Medicaid Services (CMS) issued final regulations requiring certain suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) to post a surety bond of no less than $50,000.

O&P businesses enrolling in the Medicare program for the first time and applying for a National Provider Identifier (NPI) number, responding to a revalidation or reenrolling request and those changing ownership must comply with the new regulation by May 4, 2009. Existing O&P businesses currently enrolled must meet the requirement by October 2, 2009.

The regulation requires most O&P firms to obtain a surety bond, although certain state-licensed orthotic and prosthetic personnel, and government-owned suppliers may be exempt from this CMS regulation.

(Please call 800-544-2672 for additional details regarding exemptions.)


Aon O & P makes applying for your surety bond easy – and affordable.

We've teamed with Aon Surety Bond to aid association members in securing their surety bond. Aon Affinity is the administrator of our member benefit insurance program. Aon is the world’s leading insurance broker, and their surety bond unit has access to many nationwide surety bond carriers that are both highly rated by A.M. Best and listed by the US Treasury as an approved bond carrier.

Please click here to access the surety bond application


Aon’s bond carriers offer your firm the following advantages.

  • Surety bond premiums as low as $250 (not all firms will qualify for this rate),
  • No financial statements required for some firms,
  • Available nationwide,
  • A master bond form aggregating multiple NPIs/locations,
  • Range of discounts apply for firms with multiple NPI numbers,
  • Most significant savings will apply for firms with 51+ NPI’s, Call for details.

To assist firms affected by the CMS surety bond rule, including determining whether your firm must comply, Aon confirmed that CMS recently released a detailed list of “Frequently Asked Questions” Please click here to read these FAQs (Please click on the + symbol located next to the title “Surety Bond Requirements”)


If you have any questions, please contact us at 1-800-544-2672