Texas Medicaid Surety Bond

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What is a Texas Medicaid surety bond?

A Texas Medicaid surety bond is a type of financial guarantee required by the Health and Human Services Commission (HHSC) in Texas for providers participating in the Medicaid program. It’s a safeguard, ensuring that healthcare providers adhere to all applicable regulations, provide quality care to Medicaid recipients, and fulfill their financial obligations.

The bond protects the HHSC from financial loss if a Medicaid provider fails to provide covered services to a Medicaid recipient or properly reimburse the HHSC for those services. The bond must be in the amount of $50,000.

To learn more about DMEPOS-specific surety bonds, check out these two guides on our website:

Get Your Medicaid Provider Bond:

Quick Takeaways

  • A Texas Medicaid surety bond is a type of financial guarantee required by the HHSC for providers participating in the Medicaid program. 
  • The bond protects the HHSC from financial loss if a Medicaid provider fails to provide covered services to a Medicaid recipient or properly reimburse the HHSC for those services. 
  • If a Medicaid provider breaks their bond contract, the HHSC can file a claim.
  • The bond must be in the amount of $50,000.

Who needs a $50,000 Medicaid bond in Texas?

Healthcare providers in Texas wishing to participate in the Medicaid program are typically required to obtain a $50,000 Medicaid bond. This requirement applies to various types of providers, including: 

  • Doctors
  • Dentists
  • Clinics
  • Hospitals
  • Nursing homes
  • Home health agencies
  • Ambulance providers 
  • Other healthcare professionals or organizations seeking Medicaid reimbursement for their services

How does this bond work?

The Texas Medicaid surety bond provides financial assurance to the HHSC that a Medicaid provider will provide covered services to Medicaid recipients and will properly reimburse the HHSC for those services. 

If a Medicaid provider fails to provide covered services to a Medicaid recipient or properly reimburse the HHSC, the HHSC can file a claim against the bond. The surety company will then be obligated to pay the claim up to the bond amount (then will seek reimbursement from the healthcare provider).

Parties Involved

A Texas Medicaid surety bond is a contract that involves three parties:

  • Principal: The principal is the healthcare provider or organization seeking to participate in the Medicaid program. They are responsible for obtaining and maintaining the required surety bond.
  • Obligee: The obligee is the Texas HHSC. They require the Medicaid bond as a condition for providers to participate in the Medicaid program. The obligee sets the bond requirements and regulations and monitors compliance.
  • Surety: The surety is the bonding company that issues the Medicaid surety bond to the principal. 

Active Period

The Texas Medicaid surety bond must remain active for as long as the healthcare provider remains enrolled in the Medicaid program. You must renew your bond annually before the expiration date.

How to Cancel the Bond

The Medicaid provider or the surety company can cancel a Texas Medicaid surety bond. If the Medicaid provider cancels the bond, they must provide written notice to the surety company at least 30 days before the cancellation date. If the surety company cancels the bond, it must provide written notice to the Medicaid provider at least 15 days before the cancellation date.

How Claims Work

If someone files a claim against your bond, the surety company will investigate the claim and determine whether it’s valid. If it is, the surety will pay out the claim up to the bond amount and then seek reimbursement from you. 

Ultimately, you are liable for covering all claim-related costs, which can be expensive and damage your reputation. Avoid claims by following your bond contract and all applicable laws and regulations for your industry.

How much does this bond cost?

The cost of a Texas Medicaid surety bond varies based on several factors, including the bond amount, the provider’s creditworthiness, and the specific requirements set by the HHSC. The bond amount is typically $50,000. The premium for the bond, which is the cost paid by the principal, is generally a small percentage of the bond amount.

How to Become a Texas Medicaid Provider

To become a Texas Medicaid provider, follow these basic steps:

  • Determine eligibility and provider type.
  • Gather required licenses and certifications.
  • Complete the enrollment application accurately.
  • Post a surety bond.
  • Submit the application and required documents.
  • Await enrollment verification and approval from the HHSC.

The process and requirements may vary depending on your specific provider type and any changes implemented by the HHSC. Stay informed and regularly check the HHSC website for any updates related to the Texas Medicaid program.

How to Apply for a Texas Medicaid Surety Bond

To obtain this bond, simply apply and pay online. ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply on our website or call us at 888-435-4191 to speak with an agent directly.

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About ZipBonds.com

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.