HCFA puts surety bonds on hold until October 2000
July 12, 1999 less than 1 minute read
HCFA puts surety bonds on hold until October 2000
If you have been waiting for the Health Care Financing Administration (HCFA) to issue its revised regulation for surety bonds for home health agencies and durable medical equipment (DME) suppliers, don’t hold your breath. HCFA Administrator Nancy-Ann DeParle revealed last week that the agency will not issue revised regulations for the controversial surety bond requirement until Oct. 1, 2000. The agency’s first regulation issued last year led to a firestorm of protest and the requirement was put on hold pending a General Accounting Office (GAO) study that was completed earlier this year.
Meanwhile, efforts are under way in Congress to limit the scope of the new requirement. Rep. Pete Stark (D-CA), the ranking Democrat on the House Ways and Means Health Subcommittee, has introduced legislation that would cap the amount of the surety bond at $50,000 and limit the requirement to the first two years of participation in the Medicare and Medicaid programs. It would also allow one bond to satisfy both the Medicare and Medicaid surety bond provisions.
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