If you currently bill Medicare and have a Medicare Surety Bond, then you must read this notice

The DME MACs have started filing claims against Medicare Surety Bonds to recover uncollected overpayment debts. This means they are submitting claims to surety bond companies asking for repayment of overpayments against the surety bonds. The VGM Group and VGM Insurance are working with several providers who have bond claims pending. They currently have claims that vary from $16 up to the full $50,000 bond amount.

The surety bond claims are happening because providers have outstanding overpayments more than 100 days old. One of the common reasons this occurs is because providers may have received overpayment notices from DME MACs they do not normally bill. In this case, there may not be pending payments available to offset the overpayment, as would normally be expected. In other cases, an overpayment might have been discovered against a supplier number that is no longer actively billing with the same result.

What do you need to know now?

  • Make certain that your Medicare billing and overpayment staff (or company) understand that all overpayments must be settled before they hit 100 days. The DME MACs may submit a claim against your surety bond for any overpayment amount, so don’t let a $16 claim jeopardize the future of your business.


  • A bond is not insurance. A bond is more like an advance from a bank or credit card. If the bond company pays a claim for you, they will treat that claim like a debt and use all available tools to collect that debt plus interest. Also, when a claim is paid by the surety, renewal of your surety bond may be jeopardized. Most surety bond companies will not write a bond for a provider who had a claim on a previous bond.


  • If you are notified of a claim please contact VGM Insurance’s Medicare Bond Hotline immediately.

For additional information or questions, please call VGM’s Medicare Bond Hotline 866-497-0472.

VGM Members may also contact Peggy Walker at peggy.walker@vgm.com or 800-401-3643.