Florida Medicaid Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Florida Medicaid bond needs.
What Are They?
Florida Medicaid bonds play an important role in ensuring the financial integrity of Florida’s Medicaid program. They are sometimes referred to as Florida DME (Durable Medical Equipment) or Florida Medicaid Provider bonds. They are classified as a type of license bond because purchasing one is a prerequisite for operating as a Medicaid provider in the state of Florida.
A Florida Medicaid bond is a Medicaid provider’s guarantee to do business in compliance with applicable Florida statutes, which includes properly handling reimbursements from Medicaid. It provides financial protection for the state, not for the Medicaid provider.
Who Needs Them?
Florida’s Agency for Health Care Administration requires several different types of Medicaid providers to purchase a Florida Medicaid bond. These non-government providers include:
- Certain for-profit physician groups that are more than 50% owned by non-physicians.
- Transportation providers that charge a fee for their services.
- Independent laboratories.
- Certain Durable Medical Equipment (DME) providers.
- Certain Home and Community-Based Services Waiver providers.
For Medicaid providers renewing their license, the required amount (penal sum) of a Florida Medicaid bond is the larger of $50,000 or the provider’s billing to the Medicaid program during the most recent calendar year. The Agency for Health Care Administration will determine the penal sum based on estimated first-year billing for new Medicaid providers.
Medicaid providers with multiple locations operating under the same Tax Identification Number (TIN) are required to purchase a separate bond for each location, for up to a maximum of five locations. Or, you can purchase a single $250,000 bond to cover all such locations in the state.
Each Florida Medicaid bond has a one-year term. To remain licensed as a Medicaid provider, there must be a valid bond in force at all times.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
Any violation of the terms of a Florida Medicaid bond can result in a claim against the bond, which the Medicaid provider is legally obligated to pay. However, the bonding company will pay any valid claim on the provider’s behalf and then be repaid by the provider.
What Do They Cost?
Florida Medicaid bonds are sold on a premium basis, with the annual premium being a specified percentage of the bond’s penal sum. The bonding company determines that rate based largely on the Medicaid provider’s personal credit score because of the risk associated with paying claims on behalf of the provider. Other factors considered include the Medicaid provider’s overall financial strength and industry experience, which are also good indicators of risk and the likelihood of claims.
Well-qualified providers will be assigned a premium rate in the range of 1-3% of the bond’s penal sum. Those representing a higher degree of risk to the surety company could pay a higher premium rate.
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Our surety bond professionals will get you the Florida Medicaid bond you need at a competitive rate.