Overview of Florida Medicaid Provider Bond Requirements
The Medicare bond, also known as the Medicaid bond, guarantees that providers of Medicaid in Florida will comply with all state regulations and the provider enrollment requirements of the HCA.
This bond is primarily required of durable medical equipment (DME) providers but must also be obtained during at the time of application by transportation providers, independent laboratories as well as physician groups.
Under certain conditions the bond must also be obtained by home health agencies and home and community-based services waiver providers. Make sure to consult the HCA when applying for a license whether your desired provider license type requires a surety bond.
This bond protects against violations of the provider agreement received upon enrollment to the Florida Medicaid program. If a provider violates the agreement, the state of Florida can file a claim against their bond to obtain compensation for any damages or losses that result from such a violation. Such compensation can be as high as full bond amount which, in the case of this bond, is $50,000.
Providers who violate the agreement also risk having their licenses suspended or revoked.
Our detailed ‘What is a surety bond’ guide is available for you, if you need more information about what surety bonds are and how they work.
Keep on reading for more information about the cost of this bond, what can trigger a bond claim, and how to apply for your bond.
If you have further questions, call us at (866)-450-3412 to receive support from one of our surety professionals.
Cost of Getting Bonded
The cost of getting bonded is a percentage of the full amount of the bond you are obtaining. The bond required of Medicaid providers in Florida is $50,000 for each Federal Employer Identification Number. The cost of obtaining this bond will therefore be a small percentage of that sum.
When you submit a surety bond application, the surety will provide you with a rate at which you can get bonded. That rate is determined by the surety on the basis of their perception of the risk of a claim against your bond. Sureties review applicants’ personal credit score as one of the main factors to determine the rate. They also take into account financial statements and other indicators such as liquidity.
Applicants with high credit scores, such as 700 FICO or above, are considered low risk and are typically offered the lowest rates. Such applicants can typically get bonded at a rate between .75%-3% of the amount of their bond.
Find out how much exactly you will need to pay for your bond by submitting our surety bond application form. We will provide you with a free quote with no obligations attached!
Bad Credit Bond Program
Don’t worry about getting bonded, even if your credit score is currently at a low point.
Our Bad Credit Program makes it possible for applicants with lower credit scores to get bonded just as easily as applicants in good financial standing. The only difference are the slightly higher rates for applicants with lower scores, due to the perceived higher risk. Applicants who receive a higher rate at first can improve it over time by improving their credit score. This allows them to qualify for a better rate when renewing their bond.
Visit the program page to request a quote and for more information about getting bonded with low credit.
Claims Against Your Bond
A claim arises against a bond when its conditions have been violated. Typically, bond are conditioned upon the compliance with certain state regulations.
In this case, a claim against this bond can arise if bonded providers violate the provider agreement that they make upon enrolling in the Florida Medicaid program. This agreement is also based upon their compliance with Chapter 409.907 of the Florida Statutes.
If a provider violates any of the above by, for example, misusing funds they receive under their status as providers, this can give rise to a claim against their bond. Such a claim is intended to compensate for any losses or damages that result from such violations. In such a situation the surety will usually extend compensation to claimants but the bonded provider will ultimately have to repay the surety. This is why it’s best to avoid claims.
Apply for Your Bond Today!
Complete our online bond application form to receive a free quote and more details about getting bonded.
Once you finalize your application, it will take about two working days for your bond to be issued. After that, we will forward it to you via standard mail and email.
For any inquiries about these bonds and the bonding requirements for Medicaid providers in Florida, call us at (866)-450-3412!