Indiana Medicaid Transportation Provider Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain an Indiana Medicaid Transportation Provider bond

At a Glance:

• Lowest Cost: 1% of the bond amount per year based on the applicant’s credit
• Bond Amount: At least $50,000
• Who Needs it: Certain Medicaid transportation providers operating in Indiana
• Purpose: To ensure the public will receive compensation for financial harm if the Office of Medicaid Policy and Planning (OMPP) pays out any duplicate, false, or erroneous claims to the transportation provider
• Who Regulates Medicaid Transportation Providers in Indiana: The Indiana Office of Medicaid Policy and Planning

Background

Indiana code 12-15-11-2.5 requires all Medicaid transportation providers operating in the state to enroll with the OMPP. The Indiana legislature enacted the enrollment requirement to ensure that transportation providers receive accurate Medicaid payments for the services they provide. To provide financial security to the OMPP if the transportation provider receives unearned Medicaid payments, transportation providers must purchase and maintain a surety bond, with a minimum limit of $50,000, to be eligible to enroll.

What is the Purpose of the Indiana Medicaid Transportation Provider Bond?

Indiana requires transportation providers to purchase a surety bond as part of the application process to enroll as a Medicaid provider. The bond ensures that the OMPP will receive compensation for financial harm if the provider fails to abide by the regulations set forth in Indiana code 12-15-11-2.5. Specifically, the bond protects the OMPP if the transportation provider receives payments for any duplicate, false, or erroneous Medicaid claims. In short, the bond is a type of insurance that protects the OMPP if the transportation provider receives unearned Medicaid payments.

How Can an Insurance Agent Obtain an Indiana Medicaid Transportation Provider Surety Bond?

BondExchange makes obtaining an Indiana Medicaid Transportation Provider bond easy. Simply log in to your account and use our keyword search to find the “Medicaid” 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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How is the Bond Amount Determined?

Indiana code 12-15-11-2.5 dictates that the bond amount must be a minimum of $50,000. However, the OMPP has the authority to require individual providers to purchase a larger bond if they deem it necessary. When determining if a transportation provider needs a bigger bond, the OMPP will examine the actual or estimated amount of Medicaid payments paid to the provider.

Is a Credit Check Required for the Indiana Medicaid Transportation Provider Bond?

Surety companies will run a credit check on the owners of the company providing transportation to determine eligibility and pricing for the Indiana Medicaid Transportation Provider 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 Indiana Medicaid Transportation Provider Bond Cost?

The Indiana Medicaid Transportation Provider bond can cost anywhere between 1% to 7.5% of the bond amount per year. 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 $50,000 bond requirement.

$50,000 Medicaid Transportation Provider Bond Cost

*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?

Indiana code 12-15-11-2.5 defines a Medicaid transportation provider as an individual or business that provides transportation services to Medicaid recipients. However, not all transportation providers are required to purchase a bond prior to enrolling with the OMPP. The bond requirement only applies to transportation providers that fall into the following categories:

• Taxi
• Common carrier (ambulatory)
• Common carrier (non-ambulatory)
• Transportation network company
• Nursing home transportation
• Broker fleet

Transportation providers that are owned or controlled by a nonprofit organization, hospital, or pharmacy are exempt from the bonding requirement.

How Do Indiana Medicaid Transportation Providers Apply for Enrollment?

Medicaid transportation providers in Indiana must navigate several steps when applying for enrollment. Below are the general guidelines, but applicants should refer to Indiana Family & Social Services Administration’s enrollment page for details on the process.

Enrollment Period – Indiana Medicaid Provider enrollments must be revalidated every 5 years

Step 1 – Determined the Enrollment Specialty

Indiana requires Medicaid transportation providers to obtain specific enrollment specialties corresponding to the nature of their business/relationship with Medicaid recipients. Below are the different specialties for Medicaid transportation providers in Indiana:

• • 260 – Ambulance
  • 261 – Aire Ambulance
  • 262 – Bus
  • 263 – Taxi
  • 264 – Common Carrier (Ambulatory)
  • 265 – Common Carrier (Non-Ambulatory)
  • 266 – Family Member
  • 267 – Transportation Network Company
  • 268 – Nursing Home Transportation
  • 269 – Broker Fleet (requires preapproval prior to submitting an application)

Step 2 – Purchase a Surety Bond

Medicaid transportation providers who have any of the following enrollment specialties must purchase and maintain a surety bond with a minimum limit of $50,000:

• • 263
  • 264
  • 265
  • 267
  • 268
  • 269

The remaining steps focus solely on the enrollment process for the above specialties

Step 3 – Purchase Insurance

Indiana requires certain enrollment specialties to purchase insurance, as outlined below:

• • Taxi: Minimum of $25,000/$50,000 public livery insurance
  • Common Carrier (both Ambulatory and Non-Ambulatory): Minimum of $500,000 single-limit commercial automobile liability
  • Transportation Network Company: Limits not specified, however, the company must submit proof of insurance with their application
  • Nursing Home Transportation: Limits not specified, however, the company must submit proof of insurance with their application
  • Broker Fleet: Limits not specified, however, the company must submit proof of insurance with their application

Step 4 – Complete the Application

All Indiana Medicaid Transportation Provider Enrollment applications can be submitted either online (preferred method) or mailed to the following address:

IHCP Provider Enrollment Unit
P.O. Box 726
Indianapolis, IN 46207-7263

Providers must complete the application in its entirety, and submit the documents required for their enrollment specialty as outlined here. Additionally, providers may need to pay an application fee and can determine whether or not they must do so here.

How do Indiana Medicaid Transportation Providers Renew Their Enrollment?

Prior to the stated expiration date, the Indiana Family & Social Services Administration will contact the provider with instructions on how to renew their enrollment. Indiana Medicaid Provider enrollments must be revalidated every 5 years.

What are the Insurance Requirements for Medicaid Transportation Providers in Indiana?

Indiana requires certain enrollment specialties to purchase insurance, as outlined below:

• Taxi: Minimum of $25,000/$50,000 public livery insurance
• Common Carrier (both Ambulatory and Non-Ambulatory): Minimum of $500,000 single-limit commercial automobile liability
• Transportation Network Company: Limits not specified, however, the company must submit proof of insurance with their application
• Nursing Home Transportation: Limits not specified, however, the company must submit proof of insurance with their application
• Broker Fleet: Limits not specified, however, the company must submit proof of insurance with their application

Additionally, providers with the following enrollment specialties must purchase and maintain a surety bond with a minimum limit of $50,000:

• 263 – Taxi
• 264 – Common carrier (ambulatory)
• 265 – Common carrier (non-ambulatory)
• 267 – Transportation network company
• 268 – Nursing home transportation
• 269 – Broker fleet

How Do Indiana Medicaid Transportation Providers File Their Bond?

Medicaid transportation providers can submit their completed bond form, including the power of attorney, online or mail it to the following address:

IHCP Provider Enrollment Unit
P.O. Box 7263
Indianapolis, IN 46207-7263

The surety bond requires signatures from both the surety company that issues the bond and from a representative of the transportation provider. The surety company should include the following information on the bond form:

• Legal name and address of entity/individual(s) buying the bond
• Surety company’s name and address
• Bond amount
• Date the bond goes into effect
• Date the bond is signed

What Can Indiana Medicaid Transportation Providers Do to Avoid Claims Against Their Bond?

To avoid claims on their bond, Medicaid transportation providers in Indiana must ensure they do not submit any duplicate, false, or erroneous Medicaid reimbursement claims.

What Other Insurance Products Can Agents Offer Medicaid Transportation Providers in Indiana?

Indiana requires certain Medicaid transportation providers to obtain liability insurance. However, most reputable businesses 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 Indiana Medicaid Transportation Provider Customers?

Indiana conveniently provides a public database to search for active Medicaid transportation providers 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.