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Despite Reports, ODs Remain Exempt from Surety Bond Requirement

September 4, 2009

The AOA and its state associations have heard from many members who received a letter from Palmetto GBA, the National Supplier Clearinghouse (NSC) for Medicare, informing them that their “supplier type” is not a type that is exempt from the surety bond requirement for suppliers of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). The letter states that the supplier needs to send an email to Palmetto explaining why the supplier does not need a surety bond by October 2, 2009.

AOA has learned that most optometrists can ignore this letter but should not ignore any future communication from the National Supplier Clearinghouse (Palmetto) or CMS that requires a response “within 30 days.”

The Centers for Medicare & Medicaid Services (CMS) re-confirmed to AOA that practicing optometrists are exempt from the surety bond requirement as well as the accreditation requirement for DMEPOS suppliers. Palmetto, as the NSC, will be sending a list serve reminder to all suppliers within a week reiterating that optometrists are currently exempt despite what the recent letter suggested.

For further details, please vist http://www.aoa.org/x13414.xml. Also, make sure to read the latest AOA News coverage of DMEPOS issues by visiting http://www.aoanews.org/x9567.xml.

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