Summary
New Jersey Medicaid requires all Durable Medical Equipment (DME) providers and Prosthetic/Orthotic (P&O) providers to post a $50,000 surety bond and submit an ownership disclosure statement (HCFA-1513 form) by February 27, 1998. Claims with service dates on or after February 27, 1998, from non-compliant providers will be denied, and the state may recover any previously paid amounts.
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What to do
Action · 5 steps
01Before February 27, 1998: All DME and P&O providers participating in New Jersey Medicaid must complete two actions.
02Post a $50,000 surety bond using the Medicaid Surety Bond form provided by DMAHS.
03Submit a completed HCFA-1513 disclosure of ownership and controlling interest statement to DMAHS.
04The provider or compliance officer should contact bond agencies/insurance carriers with the attached surety bond form template.
05Billing team must verify compliance status before processing any DME or P&O claims with service dates on or after February 27, 1998.
If missed: Failure to post the bond and disclose ownership will result in automatic claim denials and potential recovery of previously paid claims.
Original notice
Newsletter Vol. 8, No. 09
njmmis.com · Always check the source before changing claims.
Related changes
See all New Jersey Medicaid changes →Newsletter Vol. 7, No. 69HighEffective Jan 1, 1998 · Provider NoticeNewsletter Vol. 8, No. 05MediumNo effective date · Provider NoticeNewsletter Vol. 8, No. 07HighEffective Feb 1, 1998 · Provider NoticeNewsletter Vol. 8, No. 1LowNo effective date · Provider NoticeBrowse every New Jersey Medicaid change in the policy list