Surety Bond Professionals is a family-owned and operated bonding company with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with your Express Script bond needs.
What Are Express Script Bonds?
Pharmacy benefit managers (PBMs) like Express Script have established a network of pharmacies and insurance companies to deliver prescription medications and certain other items directly to patients’ doorsteps. They make life easier for patients and reduce prescription costs.
Express Script bonds are a form of performance bond that Express Scripts—the country’s largest pharmacy benefit manager—requires from pharmacies that want to become part of their home delivery network.
Who Needs Them?
Only pharmacies entering into a contractual agreement with Express Scripts are required to purchase an Express surety bond as part of the credentialing process. It serves as a pharmacy’s guarantee to abide by all of the terms of their contract with Express Scripts.
How Does It Work?
There are three parties to every surety bond contract. In this case:
- The obligee requiring the surety bond is Express Scripts
- The principal purchasing the bond is the pharmacy owner
- The surety is the company, one that meets the criteria established by Express Scripts, that underwrites and issues the bonds
Express Scripts requires pharmacies joining its network to maintain a $500,000 surety bond for the first two years of their contractual relationship and can extend that requirement beyond two years.
If a pharmacy violates the terms of its Express Scripts bond, Express Scripts has the right to file a claim against the bond and be compensated appropriately. The surety will first verify the validity of the claim and then make payment to Express Scripts.
By law, though, only the principal is legally responsible for claims payments. Therefore, the principal must subsequently reimburse the surety for the payment made on the principal’s behalf.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
What Do They Cost?
The premium a pharmacy will pay for an Express Scripts surety bond is a small percentage of the required $500,000 bond amount.
The surety takes several key factors into account in setting the premium rate for a given principal, such as the owner’s personal credit score, personal and business financials, and the owner’s business experience. With great credit and financial strength, the premium rate could be as low as 1%.
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