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Your Guide to Medicaid Provider Bonds
This page is a guide to surety bonds for Medicaid providers. If you’re looking for information on surety bonds for DMEPOS suppliers, which are usually required for pharmacies, that bill Medicare and Medicaid, click here for more information.
Why do I need a Medicaid provider bond?
Chances are if you need a Medicaid provider bond you accept Medicaid through some kind of healthcare practice. These services might include physician groups, ambulance transportation providers, home health agencies and personal care assistance providers. Medicaid provider surety bonds provide assurance that healthcare providers who are accepting Medicaid are conducting business honestly and complying with state statutes.
State Specific Costs
Medicaid provider bond costs and requirements vary greatly as the bond amounts and regulations surrounding each bond are established on a state level. Select your state below for more information about Medicaid provider bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Pay a Low Rate for Your Medicaid Provider Bond
Our surety experts are brokers, meaning we’re able to shop your bond around with the industry’s top underwriters to make sure you get the lowest premium available. Medicaid providers who work with SuretyBonds.com could pay a rate that’s just .5-2% of their bond amount. So if you need $50,000 of coverage, you’d only pay a premium that is $250 to $1,000 assuming you qualify for the standard market Click here for a free, no-obligation surety bond quote.
Learn More About Medicaid Bonds
Each surety insurance contract provides a financial guarantee that a business will fulfill an obligation according to contractual terms. When it comes to this type of surety bond, the purpose is to ensure businesses bill Medicaid appropriately. As with other bond types, three parties are involved with the contract.
- The obligee is the government agency that requires the bond.
- The principal is the business that buys the bond to guarantee work performance.
- The surety is the insurance underwriter that issues the bond.
In adherence to the Balanced Budget Act of 1997, the Secretary of the United States Department of Health and Human Services requires businesses that bill Medicaid to provide a home health agency Medicaid bond. This surety bond type can be used to reimburse an obligee for all or part of the cost of home health services furnished by a principal under the Medicaid program. Under this bond, the principal and surety are jointly liable for uncollected Medicaid over payments for home health services. The bond amount required for federal Medicaid Bonds is not defined on the form.
Specific to Florida
Pursuant to Florida Statute §409.907(7), the Florida Agency for Healthcare Administration requires Medicaid providers to file a $50,000 Florida surety bond. The bond requires principals to honestly and faithfully apply funds received.