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A Florida surety bond guarantees principal owners and the public that services will be performed with excellence and security. Florida legally requires a variety of contractors and organizations to secure bonds to conduct business across the public service industry. Single Source Insurance is a leading Florida bonding company. Apply easily online and take advantage of lowest rates. Browse the most common types of FL surety bonds, or contact us for a full list.
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What Are Medicaid Surety Bonds?
Florida Medicaid surety bonds serve the important purpose of protecting Medicaid patients and the entire Medicaid system against fraudulent billing, superfluous fees, and other financial harm caused by unscrupulous Medicaid providers.
A Medicaid surety bond is a prerequisite for being able to bill Medicaid for services provided to patients covered by Florida�s Medicaid program. It is the provider�s pledge to operate in compliance with Florida Law and the Medicaid provider agreement.
These bonds may be known by different names, but they all include the word �Medicaid.� For example, they can be called Florida DME (Durable Medical Equipment) bonds or FL Healthcare Provider Medicaid Bond. To keep things simple, we�ll refer to them as �Florida Medicaid bonds.�
Medicaid providers operating in Florida who are reimbursed by Medicaid for services provided for Medicaid patients must purchase a Florida Medicaid bond before they can submit any bills to Medicaid. With certain exceptions and waivers, the following people are subject to Medicaid�s bonding requirement:
Providers with multiple locations must obtain a separate bond for each location up to a maximum of five, or a total bond amount of $150,000, under a single tax ID number.
There are three parties to a Florida Medicaid surety bond agreement, which include the following:
Before you can purchase a Florida Medicaid bond, you must enroll as a Medicaid provider using the Florida Medicaid Web Portal. This will give you the Medicaid provider number that you�ll need in order to purchase the bond.
As long as you abide by all rules of the Florida Medicaid program, you should not see any claims against your Florida Medicaid bond. However, any unlawful or unethical actions you commit in providing Medicaid services that cause financial harm to AHCA or a Medicaid patient gives the injured party the right to file a claim against the bond and be compensated for the loss.
Typically, the surety will pay valid claims upfront and be reimbursed by the principal. By law, the principal, not the surety, has full responsibility for claims payments. By paying claims in advance on behalf of the principal, the surety is essentially extending a short-term credit line to the principal and can take whatever legal measures might be required to ensure repayment.
The annual premium for a Florida Medicaid bond is calculated as a small percentage of the required bond amount. That percentage is the premium rate, which is assigned by the surety on a case-by-case basis, taking into account the principal�s personal credit score and industry history. A principal with good credit and good standing in the industry could pay a premium rate as low as 1%.
The required bond amount is the lesser of $50,000 or the total amount the principal billed to Medicaid during the most recent calendar year. For new providers lacking previous Medicaid billing history, AHCA will establish the required bond amount based on an estimate of first-year billing.
Request a convenient online quote today, or call to discuss your need for a Florida Medicaid surety bond with one of our surety bond professionals.
