We are a surety only agency that thrives on creating an unbeatable client experience! Our industry leading bond volume allows us to create programs that can be tailored to each individual client, getting them their bond faster at the cheapest cost! Below are a few reasons our clients love to work with us:
Most of those who accept Medicaid through varying healthcare practices need a Medicaid Bond. These include but are not limited to physician groups, medical equipment sellers, ambulance transportation providers, and home health agencies. The bond exists to ensure honest and truthful business performance from healthcare providers and is required in most states.
Just like other surety bond types, a Medicaid bond includes three parties in the agreement. The obligee is the state or the government agency that requires the bond. The principal is the business that purchases the bond so it can work in the industry. The surety is the organization that issues the bond.
If the principal fails to comply with contract terms, the obligee files the claim against the bond and requires financial reimbursement for the contract breach. The surety examines the claim and accepts or declines it. If the claim turns out to be valid and the principal has failed to comply with the agreement, the surety pays for the financial losses. However, the principal takes over all the responsibility and covers all the expenses of the claim later on.
Each state has specific requirements regarding the Medicaid Bond price. The Medicaid providers, however, will only need to pay a premium that is a percentage of the total bond amount. The Medicaid Bond premium cost is determined by a surety and usually ranges somewhere between 1% and 5%.
For instance, if the state requires a Medicaid Bond that costs $50,000, you’ll only need to pay between $500 to $2,500 for the premium. The rates are usually determined depending on the clients’ financial statements and credit score. Some sureties offer even lower rates for Medicaid Bond premiums for trustworthy and long-term clients.
A Medicaid bond is required by state authorities and is meant to protect the consumers from fraud and misdeeds. The bond works as a guarantee for compliance with state laws and regulations in the healthcare industry. Its main purpose is to ensure healthcare providers will fulfill the obligation from an agreement and provide adequate services to the clients.
Applying for a Medicaid bond is easy when you choose to work with Bonding Solutions. As a national surety agency, we have the authority to write any bond in any state. Our rates are low and our turnaround time is quick. Let our team help you get the Medicaid bond necessary to continue running your business legally. Our online application is quick and easy to fill out but if you need additional help, our agents are available with just a simple call!
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