Pharmacy Financial Security Bond

A New York Pharmacy Financial Security / Medicaid Bond is a type of surety bond required by the New York State Department of Health for pharmacies that participate in the Medicaid program. The purpose of the bond is to protect the Medicaid program from financial losses in the event that the pharmacy fails to meet its obligations under its Medicaid contract. The bond amount is determined by the New York State Department of Health based on the pharmacy’s estimated annual Medicaid claims. The bond amount is typically $50,000, but it can be higher for pharmacies with a high volume of Medicaid claims.

Here are some examples of the types of obligations that a pharmacy must fulfill under its Medicaid contract:

• Dispense prescription drugs to Medicaid patients at the Medicaid reimbursement rate
• Provide Medicaid patients with access to a pharmacist during pharmacy hours
• Maintain accurate records of all Medicaid prescriptions dispensed
• Submit Medicaid claims promptly and accurately

If a pharmacy fails to meet any of these obligations, the Medicaid program may file a claim against the pharmacy’s bond. If the claim is successful, the surety company will be responsible for paying the Medicaid program for any financial losses that it incurs.

How to obtain a New York Pharmacy Financial Security / Medicaid Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the New York Pharmacy Financial Security / Medicaid Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

To be a pharmacy that participates in the Medicaid program in New York, you must:

1. Be a licensed pharmacy in New York State.
2. Provide the required New York Pharmacy Financial Security / Medicaid Bond
3. Have a valid New York Pharmacy Financial Security / Medicaid Bond.
4. Enter into a contract with the New York State Department of Health.
5. Meet all of the requirements of the New York State Medicaid program, including:
   • Dispensing prescription drugs to Medicaid patients at the Medicaid reimbursement rate.
   • Providing Medicaid patients with access to a pharmacist during pharmacy hours.
   • Maintaining accurate records of all Medicaid prescriptions dispensed.
   • Submitting Medicaid claims promptly and accurately.

To apply to become a Medicaid participating pharmacy in New York, you must complete the Medicaid Provider Enrollment Application and submit it to the New York State Department of Health. The application can be found on the Department of Health’s website. Once you have submitted your application, the Department of Health will review it and determine if you are eligible to participate in the Medicaid program. If you are eligible, the Department of Health will send you a contract to sign. Once you have signed the contract, you will be officially enrolled as a Medicaid participating pharmacy.

If you have any questions about how to become a Medicaid participating pharmacy in New York, you can contact the New York State Department of Health at 1-800-541-2831.