Florida Health Care Clinic Nonimmigrant Alien Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Florida Health Care Clinic Nonimmigrant Alien bond
At a Glance:
- Lowest Cost: $5,000 per year or $500 per month based on the applicant’s credit
- Bond Amount: $500,000
- Who Needs it: All Florida health care clinics whose owners are nonimmigrant aliens
- Purpose: To ensure the public will receive compensation for any damages should the health care clinic violate licensing law
- Who Regulates Health Care Facilities in Florida: The Florida Agency for Health Care Administration
Background
Florida statute 408.804 requires all health care clinics operating in the state to obtain a license with the Agency for Health Care Administration. The Florida legislature enacted the licensing laws and regulations to ensure that health care clinics engage in ethical business practices. To provide financial security for the enforcement of the licensing law, health care clinics owned by a nonimmigrant alien must purchase and maintain a $500,000 surety bond to be eligible for licensure.
What is the Purpose of the Florida Health Care Clinic Nonimmigrant Alien Bond?
Florida requires all health care clinics that are owned by nonimmigrant aliens to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the health care clinic fails to comply with the regulations set forth in Florida statutes 408 Part II. Specifically, the bond protects the public if the health care clinic engages in any acts of fraud or illegal activity. In short, the bond is a type of insurance that protects the public if the health care clinic breaks licensing laws.
How Can an Insurance Agent Obtain a Florida Health Care Clinic Nonimmigrant Alien Surety Bond?
BondExchange makes obtaining a Florida Health Care Clinic Nonimmigrant Alien surety bond easy. Simply log in to your account and use our keyword search to find the “health care” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Florida Health Care Clinic Nonimmigrant Alien Bond?
Surety companies will run a credit check on the nonimmigrant alien owners of the health care clinic to determine eligibility and pricing for the Florida Health Care Clinic Nonimmigrant Alien bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Florida Health Care Clinic Nonimmigrant Alien Bond Cost?
The Florida Health Care Clinic Nonimmigrant Alien Bond can cost anywhere between $5,000 to $37,500 per year or $500 to $3,750 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on the $500,000 bond requirement.
$500,000 Health Care Clinic Nonimmigrant Alien Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $5,000 | $500 |
| 625 – 679 | $7,500 | $750 |
| 575 – 624 | $18,750 | $1,875 |
| 550 – 574 | $25,000 | $2,500 |
| 500 – 549 | $37,500 | $3,750 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase a Bond?
Any nonimmigrant alien who owns a 5% or more controlling interest in a Florida health care clinic must purchase and maintain a $500,000 surety bond. If a health care clinic has multiple owners and one of the owners is a nonimmigrant alien, then only the nonimmigrant alien owner must be bonded.
“Nonimmigrant alien” is defined as an individual who is admitted into the United States for a limited period of time and for a specific purpose. Most nonimmigrant aliens are students, tourists, business travelers, or temporary workers.
Why are Only Nonimmigrant Aliens Required to be Bonded?
Florida requires nonimmigrant aliens to be bonded to ensure that the public will receive compensation for financial harm if the health care clinic violates licensing law. Nonimmigrant aliens usually have permanent residences in foreign countries, so if the health care clinic were to be sued or ordered to pay out funds to consumers then the owner could easily return to their country of origin and avoid making any payments. By requiring nonimmigrant aliens to be bonded, Florida is providing the public with a guarantee that they will not suffer financial losses if the health care clinic owner left the country to avoid paying out any judgments. Florida does not require US citizens, permanent residents, and other visa holders to be bonded because they are less likely to have a permanent residence abroad, and therefore can’t easily escape legal judgments issued in the US.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Health Care Clinics Apply For a License in Florida?
Health care clinics in Florida must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the application checklist for details on the process.
License Period – All Florida Health Care Clinic Licenses are valid for two years from the date of issuance and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Nonimmigrant aliens that own at least 5% or more of a health care clinic must purchase and maintain a $500,000 surety bond for the clinic to be eligible for licensure
Step 2 – Complete the Application
All Florida Health Care Clinic License applications should be mailed to the following address:
Agency for Health Care Administration
Hospital and Outpatient Services Unit
2727 Mahan Dr., MS 53
Tallahassee FL, 32308-5407
Health care clinics must complete the application in its entirety, and submit the following items:
-
- Application addendum
- Proof of financial ability to operate
- Medical/Clinic Director attestation
- Medical/Clinic Director’s contract including the effective date of service
- Copy of the Medical/Clinic Director’s Florida health care practitioner’s license as well as any other specialty certifications
- Proof of MRI accreditation or a letter of intent to receive accreditation in the next 12 months (MRI providers only)
- Required Medicare, Medicaid, or CLIA disclosures (if applicable)
- Approved repayment plan (if applicable)
Health care clinics must pay a $2,000 fee when submitting their license application.
Step 3 – Pass Inspection
Health care clinics must pass an inspection of their facility conducted by the Agency for Health Care Administration
How Do Florida Health Care Clinics Renew Their License?
Health care clinics in Florida can renew their license online here. All Florida Health Care Clinic Licenses are valid for two years from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for the Florida Health Care Clinic License?
Florida does not require health care clinics to obtain any form of liability insurance as a prerequisite to obtaining a business license. Nonimmigrant aliens that own at least 5% or more of a health care clinic must purchase and maintain a $500,000 surety bond for the clinic to be eligible for licensure.
How Do Florida Health Care Clinics File Their Bond?
Health care clinics should mail their completed bond form, including the power of attorney, to the following address:
Agency for Health Care Administration
Hospital and Outpatient Services Unit
2727 Mahan Dr., MS 53
Tallahassee FL, 32308-5407
The surety bond requires signatures from both the surety company that issues the bond and from the nonimmigrant alien owner of the health care clinic. The surety company should include the following information on the bond form:
- Legal name and location of entity/individual(s) buying the bond
- Surety company’s name and address
- Premium rate
- Date the bond goes is signed
- Witness signatures for both the principal and surety company
What Can Florida Health Care Clinics Do to Avoid Claims Against Their Bonds?
To avoid claims on their bond, health care clinics in Florida must follow all license regulations in the state, including some of the most important issues below that tend to cause:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
What Other Insurance Products Can Agents Offer Health Care Clinics in Florida?
Florida does not require health care clinics to obtain any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable clinics will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Florida Health Care Clinic Customers?
Florida conveniently provides a public database to search for licensed health care clinics in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
What other Health Care Bonds are Required for Nonimmigrant Aliens in Florida?
In addition to health care clinics, Florida requires nonimmigrant aliens who own home health agencies or who are home medical equipment providers to purchase a surety bond prior to obtaining a business license.
