NYSSO INVESTIGATES MEDICARE SURETY BOND ISSUE

10/2/09 Update

With today's deadline for securing surety bond coverage, you may need to fax your CMS-855S form and copy of the bond. 

We recommend faxing this paperwork to the two following numbers:
(803) 935-1203 - NSC East Office
(803) 935-9148 - NSC Compliance Office

You will still need to mail the paperwork to:
National Supplier Clearinghouse
P.O. Box 100142
Columbia, SC 29202-3142

9/25/09 Update

As we have reported for the last several weeks, the Center for Medicare and Medicaid Services (CMS) is requiring Opticians to secure a $50,000.00 Surety Bond to secure Medicare billing privileges.  This requirement takes effect one week from today--Friday, October 2, 2009.

In response to numerous calls from our members, we have researched and found a cost-effective solution.  Cincinnati Insurance Companies, a certified Surety Bond Company by the U.S. Department of the Treasury, will provide the bond at a cost of $250.00.  To receive a quote, your practice will be required to complete a short application.  Cincinnati will also examine your credit report.  Unlike many other companies, you will not be required to submit your company financials and tax forms.

Capital Bauer Insurance Agency is a licensed broker with Cincinnati Insurance Companies and is working closely with NYSSO to assist our members.  If you would like to obtain a copy of the bond application or have any questions regarding this program, please contact John Decatur at jdecatur@capitalbauer.com or 1-888-869-3535.

Members have also informed the NYSSO State Office that they have received great service from the Merriam Agency.  To reach this insurance agency, please contact Lisa Handy at lisa@merriaminsurance.com or 1-877-637-7426 Ext. 219.

9/16/09 Update

This morning, NYSSO heard from OAA concerning their request for exemption review by the Centers for Medicare & Medicaid Services (CMS).  CMS states that there is not enough time to do a full review of their requirements this year--so opticians will need to purchase a surety bond by October 2nd in order to secure Medicare billing privileges. 

Please note:  If you are a NYS Licensed Optician who works for an optometrist or ophthalmologist, you will not need to secure a surety bond, as you will be treated under the doctor's exemption.  

Suggestion for finding a surety bond:  Call your insurance agent and ask if they can offer this type of coverage.  NYSSO has been informed of surety bond quotes for this Medicare coverage from $250.00 - $1,000.00--so shop around and get a good price.  

CLICK HERE TO READ THE OAA'S LEGISLATIVE UPDATE

CMS is being lobbied by OAA to, once again, review the exemption issue and to clairfy the ambiguous language associated with Medicare billing privileges.  CMS states that it will do a review for next year.  NYSSO is adding its voice to this call for review.  As always, NYSSO will keep New York State Opticians posted on this issue.

9/11/09 Update

On 9/8/09, NYSSO received a letter from Congressman Paul Tonko informing the Society that he has contacted the Centers for Medicare and Medicaid Services (CMS) and asked them to address the concerns of opticians over the surety bond exemption.  The Congressman stated that as soon as he heard back from this office, he would get back to NYSSO.

The Opticians Association of America continues to press CMS for a timely response to the situation--as opticians are concerned about the October 2, 2009 deadline.  OAA is keeping NYSSO posted.

A suggestion:  It would not hurt to obtain quotes for the surety bond should opticians not receive the exemption--then opticians could act upon those quotes if the determination states non-exemption.

We will keep you posted on further developments.

9/4/09 Update

The NYSSO State Office has received phone calls and e-mails from members inquiring about accreditation and surety bond exemptions for opticians. 

Opticians across New York State--and the nation--have been receiving mailings from Palmetto GBA/National Supplier Clearinghouse and insurance companies informing them that they must obtain a $50,000.00 surety bond by October 2, 2009 in order to obtain/maintain Medicare billing privileges.

These mailings are causing quite a bit of confusion and frustration as Opticians have been exempt from accreditation and feel that they should not have to take out a surety bond.

Since receiving the first calls, NYSSO officers and staff have been researching this issue and getting conflicting reports from the national Medicare Office.  We have reached out to Congressman Paul D. Tonko (NY-21st District) for help in cutting through the bureaucratic red tape.

We have also been in coversation with the Opticians Association of America (OAA)--informing them about what are members are saying--and to get their support in clarifying this situation.

Due to ambiguity in the regulations regarding a Surety Bond exemption for independent Opticians, Frank Whelan, the Centers for Medicare and Medicaid Services (CMS) agency administrator for the new requirements informed the OAA that CMS is addressing this issue and will notify OAA when a concise decision has been made.

As soon as a decision is made, OAA will notify NYSSO and we will post an update for our members.

CLICK HERE TO READ THE OAA'S LEGISLATIVE UPDATE ON SURETY BONDS

To see how the language is ambiguous and what CMS says about exemptions, please refer to the documents below:

Exemption Chart

Surety Bonds FAQ's