Lance Surety Bond Associates, Inc.

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.

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.

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: California and Florida.

Most affected suppliers were operating in Southern Cal and South Florida. CMS has also halted payments to a number of