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Texas Medicaid Bond

Complete Guide to Bonding for DMEPOS Providers in Texas

  • Your free Texas Medicaid bond quote is a step away
  • Excellent bonding rates
  • Bad credit options

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What Is a Texas Medicaid Bond?

Medicaid providers in Texas need to obtain a Texas Medicaid bond in order to be allowed to operate legally in the state. The requirement is set forth in the Texas Administrative Code, Title 1, Part 15, Chapter 352, Rule §352.15.

The bond is required by the Texas Health and Human Services Commission. Its purpose is to protect the state from financial fraud on the side of Medicaid providers, including companies and health providers offering Medicaid as an insurance option for patients.

Just like other surety bonds, the Texas Medicaid bond is a contractual agreement between three entities. The principal is your Medicaid provider business, which has to post the bond. The Texas Health and Human Services Commission is the obligee that enforces the requirement. The surety is the third party that underwrites the bond and backs your company.

Apply for your surety bond today and lock your rate for 90 days!

Frequently Asked Questions

Who needs to obtain a 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.

How much does a Texas Medicaid bond cost?

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.

Bond Cost Based on Credit Score
Bond Type Surety Bond Amount Credit Sore
Above 700 Between 650-699 Between 600-649 Below 599
Texas Medicaid Bond $50,000 $250-$625 $375-$750 $1,000-$2,500 $2,500-$5,000

Can I get a Texas Medicaid bond with bad credit?

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.

How do I get my Texas Medicaid bond?

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.

Apply for your surety bond today and lock your rate for 90 days!

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.

What happens in case of a claim against me?

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.

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What Our Clients Have To Say?




Kimberlee Ables
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew Poincot
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie Martinez
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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