Why Suppliers Have to Secure a Medicare & Medicaid Bond

Healthcare is one of the most important industries in the country. Medicare and Medicaid services are the driving forces of the industry. Aside from the healthcare professionals providing services to patients, there are suppliers who provide medical equipment to hospitals, doctor offices, private practices, and more. These suppliers must secure Medicare and Medicaid bonds before they can officially sell their equipment to healthcare facilities.

Medicare and Medicaid Bonds ensure that any supplier who defaults or commits fraud must compensate for the losses. The surety company who issued the bond will pay the beneficiary. The supplier must then pay the surety company back.

Importance of Medicare & Medicaid Bonds

• These bonds ensure that the beneficiaries will receive genuine products and services from the supplier
• These bonds allow the medical suppliers to operate their business
• Any beneficiary who is billed inappropriately is compensated according to the law
• The possibility of fraud by the supplier is reduced
• Every transaction that happens between a supplier, a healthcare facility, and a beneficiary is monitored for its legitimacy