MedicaidAdministrativeHigh impact
Newsletter Vol. 8, No. 09
New Jersey Medicaid·NJ · Orthopedics, General Practice·Provider Notice
Effective date
Feb 27, 1998
We identified it
Jun 20, 2026
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.
Action Required
Before February 27, 1998: All DME and P&O providers participating in New Jersey Medicaid must complete two actions: (1) Post a $50,000 surety bond using the Medicaid Surety Bond form provided by DMAHS, and (2) Submit a completed HCFA-1513 disclosure of ownership and controlling interest statement to DMAHS. The provider or compliance officer should contact bond agencies/insurance carriers with the attached surety bond form template. Billing team must verify compliance status before processing any DME or P&O claims with service dates on or after February 27, 1998. Failure to post the bond and disclose ownership will result in automatic claim denials and potential recovery of previously paid claims.