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How much does an Texas Medicaid bond cost?
The cost to get your Texas Medicaid surety bond is a small percentage of the full amount of the $50,000 Texas Medicaid bond. The cost of your bond is determined by the surety bond company which issues the bond, and can be as little as $370.
The exact premium you will need to pay to obtain your bond is determined by the surety upon reviewing your application. When determining your rate, the surety takes into account things like your personal credit score, your financial statements, your personal assets and liquidity, and more. Among those, your personal credit score is most important.
Applicants with high credit scores– above 700 FICO– can expect to get a quote on their bond that ranges between 1-3% of the whole bond amount. See the table below for an overview of how much your bond may cost depending on credit score.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Texas Medicaid Bond||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
Options for applicants with bad credit
Thanks to our Bad Credit Program, you can still get a Texas Medicaid bond, even if you have a low credit score. The only difference between good-credit applicants and bad-credit applicants are the premiums. Those with bad credit scores usually have to pay more.
Our program is designed to provide applicants who have a low or nonexistent score with the possibility to obtain the bond they need to perform their work. By getting bonded and staying in business, applicants have a chance to improve their credit score and get a better rate on their bond in the future.
The exact quote you will get on your bond is determined on a case-by-case basis. For more information regarding bonds under this program, see the Bad Credit Program page. Contact our bond experts to get more information and a precise quote!
What is the purpose of the Texas Medicaid bond?
Under Title 1 of the Texas Administrative Code (TAC) §352.15, Medicaid providers are required to obtain a Texas Medicaid bond. The purpose of this bond is to guarantee to the Texas Health and Human Services Commission (HHSC) that the provider will pay any uncollected overpayments to the state.
If a provider does not pay these overpayments to the state, or charges the state for more Medicaid coverage than required by a patient, the HHSC can make a claim against their bond. When a claim is made against the bond, the surety which backs the bond must investigate the case. If it deems the claim legitimate, it then pays compensation to the claimant (the HHSC) up to the full amount of the bond ($50,000).
If compensation is extended to a claimant by the surety, the bonded principal is then required to repay the surety as part of the bond agreement.
How to get a Texas Medicaid provider license
To enroll as a Texas Medicaid provider, applicants will need to complete a number of different forms depending on whether they enroll as individuals or as a group, as well as whether they are incorporated in Texas or are an out-of-state provider. When enrolling as a provider, applicants may expect to be asked to:
- Complete Pre-Application Orientation (PAO)
- Submit one or a number of application forms
- Pass a criminal background check
- Obtain a $50,000 Texas Medicaid bond
- Pay a licensing fee
Detailed information about the enrollment process can be received from the website of the Texas Medicaid & Healthcare Partnership as well as from the HHSC. Make sure to contact either one of them to find out more about the enrollment requirements.
If you want to know more about the bonding requirements, call us at (866)-450-3412. Our surety professionals will provide you with all the information regarding the bond, the bonding process, and anything else you need to know.