What Is a Florida Medicaid Provider Bond?
Medicaid providers in Florida must be enrolled with the Florida Agency for Health Care Administration. As part of the enrollment process, you have to obtain a Florida Medicaid provider bond to meet the authority’s requirements.
The Medicaid provider bond is a type of license bond. Its purpose is to ensure that providers who serve patients with Medicaid insurance act lawfully and handle reimbursements from Medicaid diligently.
The Florida Medicaid provider bond works like most other Florida surety bonds. In essence, it is a three-party contract. The principal is your Medicaid provider company. The Agency for Health Care Administration is the obligee which imposes the bonding. The third entity is the surety that provides you with the bond.
Questions about Medicare Bonds Dmepos Bonds in Florida
Who needs to obtain a Florida Medicaid provider bond?
If you want to operate as a Medicaid provider in Florida, you have to enroll with the Agency for Health Care Administration via the official Enrollment Application. This way, you gain the right to receive payments from the Medicaid program for services you have provided to Medicaid insurance recipients.
After you have successfully enrolled and received your nine-digit Medicaid provider number, you will use the number to apply for your Florida Medicaid provider bond. Only then you have fully completed the process, and can receive reimbursements from Medicaid.
The bond is an extra layer of guarantee for the state and its citizens that you will abide by the applicable Florida statutes. In case you fail to follow the law, you can face a bond claim that can provide compensation for any affected parties.
How much does a Florida Medicaid provider bond cost?
The bond amount that Florida Medicaid providers need to post is $50,000. The bond price you have to cover, however, is different. It’s called the bond premium. It’s only a fraction of this amount, which can be as low as 1%-3%. Your bond price may be only $500-$1,500.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Florida Home Medical Equipment Provider||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
How is your bond premium set? It’s determined on the basis of your personal and business finances. Your surety has to examine your personal credit score, business finances, and assets and liquidity. Your professional experience can also affect your bond price. By assessing these factors, the surety can predict the level of bonding risk. If your finances are in good shape, you’re likely to get a lower bond premium.
You can consult our surety bond cost page for further information about the way your bond price is determined.
Can I get a Florida Medicaid provider bond with bad credit?
Even if your finances are far from perfect, you can still get your Florida Medicaid provider enrollment surety bond with us. Lance Surety Bonds runs its Bad Credit Surety Bonds program to allow applicants with low credit scores, tax liens, bankruptcies, or civil judgements get the bond they need.
The bonding rates for applicants with problematic finances are between 5% and 10%. The higher price is there to compensate for the increased bonding risk. With us, however, you are still guaranteed a top rate. Since we work with a number of A-rated, T-listed surety companies, we can choose the most appropriate and cheap bond option for your case.
How do I get a Florida Medicaid provider bond?
You can start your bonding process online. Apply online for a free, no-obligations Florida Medicaid provider bond quote today. Ready to see your exact price? Just complete the full application and provide all needed documents, and we’ll deliver it to you in no time.
Our How to Get Bonded page is an excellent resource on the intricacies of the bonding process.
For any questions, just call us at (877) 514-5146. Lance Surety Bonds’ specialists will be happy to assist you.
How are bond claims handled for Florida Medicaid providers?
Unlike insurance, surety bonds protect the state and Medicaid recipients, and not your business. In case you transgress from state rules, you can get a claim on your bond. On proven claims, you are liable to pay affected parties up to the penal sum of your bond, which is $50,000.
Your surety covers the costs at first, but you have to repay it fully soon after. This means that bond claims can cause financial harm to your company. They can also prevent you from getting bonded in the future.