$50,000 Medicaid Provider Bond in Indiana

08/29/2011

SB 510/HB 1230: Miscellaneous Bond – Medicaid Providers

Transportation suppliers who are enrolling in Medicaid, changing the ownership of a Medicaid provider or those who are purchasing or transferring the assets or ownership interests of a Medicaid provider are required to post a $50,000.00 surety bond. This bond will be continuous for a term of three years and it will guarantee that the surety will pay the amount of a Medicaid overpayment or false claim made to the provider. The surety’s liability will not exceed the bond amount, and the bond requirement would not apply to federal tax-exempt organizations. Secretary of Family and Social Services would have discretion to grant waivers for transportation providers operating in a federal or state designated underserved area.

Minnesota PCA Agency Bond

07/04/2011

HB 1362: Miscellaneous Bond – Personal Care Assistants

This requires personal care assistants to enroll with the Department of Health and Health Care. They must also be employed through a qualified personal care assistance provider agency. A surety bond must be posted by the agency in an amount equal to $50,000 or 10% of the provider’s payments from Medicaid in the previous year, whichever is less. A fidelity bond providing coverage in the amount of $20,000 is also required.

Visit our website for more information on MN PCA Agency Bonds.

Center for Medicare and Medicaid Services (CMS) takes measures to fight fraud in California and Florida

01/08/2009

In reaction to the significant amount of medical equipment fraud in recent times, the Center for Medicare and Medicaid Services (CMS) just announced that it has taken back billing privileges of over 1,000 suppliers of medical equipment in two states:CaliforniaandFlorida.

Most affected suppliers were operating in Southern Cal andSouth Florida. CMS has also halted payments to a number of “home-health” agencies operating in and around Miami-Dade. Additionally, the CMS has mandated that some medical equipment suppliers must purchase/post “surety bonds” of $50,000 and up.

Existing suppliers must post the required surety bonds no later than Oct 2, 2009. New suppliers in the process of enrolling have until May 4, 2009 to post the bonds. It is said that CMS is requiring these surety bonds in order to lower the risk that Medicare must face as a result of fraudulent equipment suppliers.