What is a Medicaid provider bond?
In some states, healthcare providers that accept Medicaid are required to post a surety bond to ensure they conduct business legally and ethically, following applicable laws and regulations. Relevant healthcare providers may include home health agencies, personal care assistance providers, physician groups, ambulance transportation providers, and durable medical equipment providers.
Posting this surety bond provides Medicaid with a financial guarantee that healthcare providers will bill them fairly. If you overcharge for coverage or abuse the Medicaid program somehow, Medicaid can file a claim.
To learn more about DMEPOS-specific surety bonds, check out these two guides on our website:
Get Your Medicaid Provider Bond:
- In some states, healthcare providers that accept Medicaid are required to post a surety bond to ensure they conduct their business legally and ethically.
- Posting this bond provides Medicaid with a financial guarantee healthcare providers will bill them fairly.
- If a healthcare provider abuses the Medicaid program or breaks the surety bond contract in any way that costs Medicaid money, Medicaid may file a claim against the bond.
How do Medicaid provider bonds work?
Medicaid provider bonds are three-party agreements involving:
- An obligee: The agency requiring the principal to post a bond
- A principal: The healthcare provider that accepts Medicaid
- A surety: The bond underwriter that backs the bond
If a healthcare provider abuses the Medicaid program or breaks the surety bond contract in any way that costs Medicaid money, Medicaid may file a claim against the bond. The surety may step in to settle the claim initially, but the principal must repay them in full.
How much does a Medicaid provider bond cost?
If you have a high credit score, you may pay as low as 1% or less of the total bond amount required in your state. So if your bond requirement is $50,000, you might pay as little as $500 to obtain your bond.
Get a Medicaid Provider Bond in Your State
We can help you find the right license and permit bond for your healthcare business. ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.