For healthcare providers that bill to Medicaid, this surety bond ensures that providers keep accurate records, bill correctly, and handle funds properly.

1. Medicaid BondFor healthcare providers that bill to Medicaid, this surety bond ensures that providers keep
accurate records, bill correctly, and handle funds properly.
WWW.SURETYBONDAUTHORITY.COM

2. 01
What is a
Medicaid Bond?
The Medicaid bond is required to make sure that any business
that works with Medicaid will bill appropriately.
This bond has been necessary since 1997 when the Secretary
of the United States Department of Health set it as a
requirement in the Balanced Budget Act.

3. PHARMACIES
Some businesses that may require this bond include:
This is a bond that protects consumers by ensuring that the business they work with is operating in
accordance with state laws.
MEDICAL
EQUIPMENT
SELLERS
PHYSICIANS
GROUPS

4. In a Medicaid bond, as with all surety bonds, there are three
key parties:
The State
OBLIGEE
The agency that
requires a surety bond
to be purchased.
The Person /
Business
PRINCIPAL
The person or business that is
required to obtain the bond.
The Surety
Company
SURETY
The company that
underwrites the bond.
A B C

5. If for any reason the principal fails to meet the said terms, the obligee will file a claim against
the bond.
02
After an investigation, the surety will make a payment to the complainant, not to exceed the
amount of the bond.
How does a surety
bond work?
The principal will then need to repay the amount that was paid out from the bond.

6. What is the cost
of this bond?
Each state has its personal specific requirements for the amount
of a Medicaid bond.
03
The bond Cost is also called the “Bond Premium”.
You will be required to pay a premium that is a percentage of that
total bond amount.

7. +1-800-333-7800
https://suretybondauthority.com/medicaid-bond/