Letters to the editor: Here's an idea to fight fraud

Monday, July 25, 2011

How about having Congress pass legislation that the NSC has to have a surety bond to cover all the new fraudulent suppliers that it lets into the 

DMEPOS system by issuing supplier numbers to crooks (CMS takes new approach to fraud, see page 1)? And legislation that would not allow the NSC to pass on the cost of surety bond to taxpayers. How about setting a line of credit for each new supplier for the first 90 days of claims submitted to the supplier's surety bond amount? If the supplier thinks he can service and bill $5 million dollars in claims in 90 days, he can buy a $5 million surety bond. Then the surety bond company can chase crooks when DMEPOS computer stops EFT at $5 million and finally raises the red flag to stop payments. The line of credit concept is used by vendors to limit loss by new accounts. Should work for DMEPOS, too.

John Mishasek