The Texas Medicaid Provider Surety Bond is required by the Health and Human Services Commission.
The Health and Human Services Commission requires that the Texas Medicaid Provider Surety Bond has a one year term and that it must be in an amount no less than $50,000. For each location enrolled, there must be a separate $50,000 bond for each location. The cost of this bond starts at $500 for the year.
This bond must be continuous and must be kept in effect in order for the applicant to be granted and continue to be granted status as a medicaid provider. Because of the continuous nature of this bond, it will remain in effect until it is canceled or replaced.
At the time of enrollment or re-enrollment, providers must submit the surety bond form with original signatures and a copy of the Power of Attorney document from the surety company that issued the bond.
The bond basically states that the bond holder shall pay the obligee any uncollected over-payments.