Mississippi Nursing Home Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Mississippi Nursing Home bond

At a Glance:

• Lowest Cost: 0.75% of the bond amount per year based on the applicant’s credit
• Bond Amount:  Determined on a case by case basis (more on this later)
• Who Needs it: All Mississippi nursing homes that are enrolled Medicaid providers and hold residents’ funds
• Purpose: To ensure that residents will receive compensation for financial harm if the nursing home mismanages their funds
• Who Regulates Nursing Homes in Mississippi: The Mississippi Department of Health (DOH)

Background

Mississippi Administrative Code 23-207-2:1 requires all nursing homes that receive Medicaid payments to enroll as a provider with the Mississippi Department of Health. The Mississippi legislature enacted the enrollment requirement to ensure that eligible nursing homes receive compensation for services that are covered by Medicaid. To ensure residents are not taken advantage of, nursing homes that manage residents’ funds must purchase and maintain a surety bond to be eligible to receive Medicaid payments. Additionally, federal statute 483.10 requires all long-term care facilities that hold resident funds in a trust account to purchase a surety bond or other similar form of security. However, the federal regulation leaves the implementation and enforcement of this requirement to individual states.

What is the Purpose of the Mississippi Nursing Home Bond?

Mississippi requires nursing homes that manage resident funds to purchase a surety bond before enrolling as a Medicaid provider. The bond ensures that residents will receive compensation for financial harm if the nursing home fails to abide by the regulations outlined in Mississippi administrative code 23-207. Specifically, the bond protects residents if the nursing home in any way mismanages their funds. In short, the bond is a type of insurance that protects residents if the nursing home acts unethically with their money.

How Can an Insurance Agent Obtain a Mississippi Nursing Home Surety Bond?

BondExchange makes obtaining a Mississippi Nursing Home bond easy. Simply log in to your account and use our keyword search to find the “Nursing Home” 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.

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How is the Bond Amount Determined?

Mississippi administrative code 23-207-2:1 dictates that the bond amount must be greater than or equal to the highest daily balance of all resident funds held on deposit. First-time enrollment applicants must use their estimated balance when determining the required bond amount.

Is a Credit Check Required for the Mississippi Nursing Home Bond?

Surety companies will run a credit check on the owners of the nursing home to determine eligibility and pricing for the Mississippi Nursing Home 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 Mississippi Nursing Home Bond Cost?

The Mississippi Nursing Home bond can cost anywhere between 0.75% to 5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $20,000 bond requirement.

$20,000 Nursing Home 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 the Bond?

Mississippi requires all nursing homes that manage resident funds and accept Medicaid payments to purchase a surety bond before enrolling as a Medicaid provider. To paraphrase Mississippi rule 43-11-13, a nursing home is any facility that provides care to residents under the supervision of a registered nurse and has either a registered nurse or a licensed practical nurse on duty at all times.

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 Nursing Homes Enroll as Medicaid Providers in Mississippi?

Nursing homes in Mississippi must navigate several steps when enrolling as a provider. Below are the general guidelines, but applicants should refer to the enrollment guidelines for details on the process.

Step 1 – Obtain a Facility License

Nursing homes must obtain a license through the Mississippi Department of Health before enrolling as a Medicaid provider. To obtain a license, nursing homes must:

• • Submit a notice of intent 15 days before submitting a formal Certificate of Need application
  • Apply for a Certificate of Need
    • Must include a completed financial analysis spreadsheet

45 days after the nursing home submits its Certificate of Need application, the DOH will publish a staff analysis providing their recommendation on whether the facility should be issued a license. An ex parte rule will take effect based on the DOH’s recommendation. If the nursing home does not agree with the DOH’s recommendation, they may request a hearing with an independent health officer to make their case as to why they should be licensed. The health officer will then make a recommendation to the State Health Officer on whether the facility should be licensed. The State Health Officer will then issue a final order on the facility’s application. The Certificate of Need application process can be viewed in more detail here. Additionally, all required forms can be found here.

All Mississippi Certificate of Need applications should be mailed to the following address:

Mississippi State Department of Health
Health Planning and Resource Development (Osbourne – Suite 150)
570 East Woodrow Wilson
Jackson, MS 39215-1700

License Period – All Mississippi Nursing Home Licenses expire on March 31 and must be renewed before the expiration date

Step 2 – Enroll as a Medicaid Provider

The DOH will certify the nursing home for participation in Medicaid programs after issuing a facility license. The certification does not automatically enroll the nursing home as a provider but rather deems the facility eligible to submit a provider application. Nursing homes should mail their completed provider application to the following address:

Conduent State Healthcare, LLC
ATTENTION: Provider Enrollment P.O. Box 23078
Jackson, MS 39225

Applications submitted via FedEx should be mailed to:

Conduent State Healthcare, LLC
ATTENTION: Provider Enrollment
385 B Highland Colony Parkway, Suite 300
Ridgeland, MS 39157

Nursing homes must complete the application in its entirety, and pay all applicable fees.

Step 3 – Purchase a Surety Bond

Nursing homes that manage resident funds and accept Medicaid payments must purchase and maintain a surety bond

How do Mississippi Nursing Homes Renew Their License and Provider Enrollment?

Nursing homes in Mississippi must renew their state license annually by March 31 of each year. Before the expiration date, the DOH will contact the nursing home with instructions on how to renew their facility’s license. Additionally, nursing homes must revalidate their Medicaid provider enrollment at least once every 5 years. The Division of Medicaid will contact the nursing home when it is time to revalidate their enrollment and provide them with instructions on how to complete the revalidation process.

What are the Insurance Requirements for Nursing Homes in Mississippi?

Mississippi does not require nursing homes to obtain any form of liability insurance as a prerequisite to obtaining a business license or Medicaid enrollment. Nursing homes that manage residents’ funds and receive Medicaid payments must purchase and maintain a surety bond in an amount greater than or equal to the highest daily balance of all resident funds held on deposit. First-time enrollment applicants must use their estimated balance when determining the required bond amount.

How Do Mississippi Nursing Homes File Their Bond?

Nursing homes should mail their completed bond form, including the power of attorney, to the following address:

Mississippi State Department of Health
Post Office Box 1700
Jackson, MS 39215-1700

The surety bond requires signatures from both the surety company that issues the bond and from a representative of the nursing home. 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 state of incorporation
• Bond amount
• Date the bond is signed

What Can Mississippi Nursing Homes Do to Avoid Claims Against Their Bond?

To avoid claims on their bond, nursing homes in Mississippi must ensure that they:

• Hold all resident funds in a designated trust account
• Administer all resident funds in a lawful manner
• Accurately report on all resident funds
• Refund all resident funds upon the termination of a deposit

What Other Insurance Products Can Agents Offer Nursing Homes in Mississippi?

Mississippi does not require nursing homes to purchase any form of liability insurance as a prerequisite to obtaining a business license or enrolling as a Medicaid provider. 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 Mississippi Nursing Home Customers?

Mississippi conveniently provides a public database to search for active nursing homes 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.