Texas Medicaid Bond

Any health provider that would like to operate as a Medicaid provider in Texas needs to undergo the Texas Medicaid provider enrollment procedure. The Medicaid bond is required, so that the company is allowed to operate as a Medicaid provider. You can find the Texas Medicaid surety bond form online.

The bond functions as a guarantee that providers will act lawfully, and won’t commit financial fraud against the state, represented by the Texas Medicaid and Healthcare Partnership (TMHP). More specifically, if Medicaid providers fail to return excessive payments back to the state, or require larger sums than the actual medical expenses of patients, the bond can be used to compensate the state for the losses.

The price of your surety bond is based on the amount that you are required to obtain in order to enroll as a Medicaid provider. In the case of Texas, the bond requirement is $50,000.

This bond amount may seem considerable, but your bond premium is only a small percentage of it. In a standard case, you’ll need to pay only 1%-5% of this amount to get your Texas Medicaid surety bond.

Your exact bond price is calculated on the basis of your personal and business finances. When you apply for a bond, your surety examines your personal credit score, business finances, assets and liquidity, as well as professional experience. The more stable your overall profile is, the lower your bond cost will be.

Our surety bond cost page offers a full overview of how your surety bond cost is set, so you can consult it if you’d like to get a deeper insight.

Health providers with problematic finances can still get bonded. Lance Surety Bonds operates its Bad Credit Surety Bonds program to allow applicants with low credit scores, tax liens, bankruptcies, or civil judgements obtain the Medicaid bond they need.

If your finances are not stellar, the bonding rates are typically in the range of 4%-7.5%. The higher bond cost compensates for the risk level of bad credit bonding. Since we work with numerous A-rated, T-listed surety companies, we can still get you a top bonding price. We can shop around and select the best match for your particular circumstances.

You can get your free Texas Medicaid bond quote right away by applying online. Once you complete the full bond application, you can also obtain an exact bond price from us.

Want to learn more about the bonding process? Make sure to check out our How to Get Bonded page.

If you have any questions, call us at (877) 514-5146. Lance Surety Bonds’ experts will gladly help you out.

Your Texas Medicaid bond is not protection for your business, so it doesn’t work like insurance. Instead, it protects the state from financial fraud you might engage in. For example, if you fail to return overpayments on Medicaid insurance to the state, or you demand higher payments than needed, you can face a claim on your bond.

If the case is proven, you need to reimburse the state for the losses. The maximum penalty is the amount you have been bonded for. Initially it is your surety that takes care of the costs, but you need to repay it afterwards. This means that bond claims are a serious financial threat and should be avoided as much as possible.