Why Medicare Surety Bond Providers Must Check Applicants Background

The new Medicare surety bond system requires medical equipment providers to pay 1,500 dollars to a surety bond provider for the purpose of registering a 50,000 dollar bond into the Medicare system. Bond providers have the right to refuse to sell Medicare surety bonds to businesses with questionable backgrounds.

While that all sounds pretty straight forward, the surety bond providers are running into troubles while trying to find out if any Medicare action over the last ten years voids the sale of the bond. Medicare does not have an Internet site that is devoted to telling who has bad backgrounds, and who does not. Therefore, a detialed security check of the applicants becomes necessary.