Health Care Programs (MHCP) Bonds

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Who Is Required To Purchase a Health And Human Care Bond?

The Minnesota Department of Human Services issues licenses for:

• Community First Services and Supports Provider agencies
• Recuperative Care agencies

Community First Services and Support Provider Agency License

This agency is responsible for offering flexible programs to help people suffering from disabilities, chronic illness, and any other care to help their patients live more independently.

The primary individuals who fall into these categories are the elderly and those with special needs. And the services include in-home help and outside the home, community, assistance.

Recuperative Care Agency License

This agency focuses on homeless individuals to help prevent hospitalizations, including providing medical care and support services for physical illness when they are living in a shelter.

Why is a Minnesota Health Care Programs (MHCP) Bonds Required?

At a high level, a surety bond is used to hold a service provider accountable to the promises they make as a licensed authority.

Bottom line, the surety bond is for the protection of the clients and patients of a health and human care license, along with Medicaid, more on this in the next section.

Here are the two surety bond requirements:

• Fidelity surety bond
• License surety bond

What is a Fidelity Surety Bond

Only the Community First Services and Support Provider agency is required to purchase this fidelity bond.

The fidelity surety bond is also called an employee dishonesty surety bond. (There are many different types of fidelity bonds.)

This surety bond is required because the owner and/or employees are performing care work in the private residence, protecting the patient from:

• Theft of personal belongings
• Theft of money if access to personal finances is required

If a patient or their family could prove an employee committed theft, they could make a claim against the agency's surety bond for the financial damages suffered.

The License Bond

Both the Community First Services and Support Provider agency and the Recuperative Care agency are responsible for billing Medicaid for services they are providing.

This license bond has the primary purpose to ensure proper Medicaid billing. If an agency is found guilty of improperly over billing Medicaid, a claim can be made against the agency's surety bond for financial compensation.

The license bond is also responsible for holding the agency to the laws and regulations for their license.

What Is The Health And Human Care Bond Amounts?

Each surety bond requirement has a bond amount. This is the total amount of protection available for any one or in the event of multiple claims.

These bond amounts are set by the Department of Human Services.

Here are the bond amounts you're required to purchase:

If you're ready to get pricing now, you can complete a quote request with our online form or call a bond specialist at 1-800-608-9950.

How Much Does a Health and Human Care Bond Cost?

The Fidelity Bond

The $20,000 fidelity bond will have a low fixed price based on the number of employees your agency has entering patients homes.

Here are some of the most common options. All of these prices are one payment for a 12 month bond term from the time you purchase your bond.

If you need more than 10 employees, call a bond specialist because we might be able to reduce the price you pay - 1-800-608-9950

The License Bond

The license bond is a custom priced bond that is going to depend on three primary factors including the:

• Primary credit or the owner or owners
• Business and industry experience
• Bond history if an owner has been bonded in the past

Once we get you and any other owners information, we will price shop for you to find the lowest possible price.

We are Surety Bond Direct, a specialized surety agency. We have a network of the highest A-rated sureties, allowing us to price shop for you.

We don't even understand why it happens but different sureties will come back with vastly different prices based on a quoted rate. These rates often vary by 1, 2, even 3 percentage points and this difference can save you hundreds, even thousands of dollars.

Here are some pricing examples based on the $50,000 bond amount. Pay attention to how much the price changes from one rate to the next.

And if you're required to get the $100,000 bond, you can double the savings.

If you're ready to get pricing now, you can complete a quote request with our online form or call a bond specialist at 1-800-608-9950.

All price quotes are good for 30 days and there is no obligation to purchase once we get you, your exact price.

How Long Does a Health and Human Care Bond Last?

Once you're read and you purchase you bond, our bond issuance team will prepare your bond with the:

• Correct bond form
• Legal signatures and seals
• Power of attorney

We will then email you a copy of your bond so you can submit it with your application.

Each bond has a bond term or an active timeframe of coverage. For both the fidelity bond and the license bond, the bond term is 12 months from the bond effective date (the start date you choose when you purchase your bond).

This is another great reason to purchase your bond with us. You're assigned a bond specialist who will manage your bond for you.

As your bond's expiration or renewal date approaches, your bond specialist will reach out to you 30 to 40 days in advance to ensure the bond renewal premium is paid so your bond remains active.

The renewal premium is likely to be the same price. However, if you've improved your credit, you can pay less for your license bond.

Health Care Programs (MHCP) Bondss And Getting Your Minnesota Business License/Registration

Getting licensed for your Community First Services and Supports Provider agency consists of:

• Complete the application (each location requires its own application process)
• The owners and managing employees need to attend a Steps for Success workshop

The follow forms are required:

• CFSS Agency Enrollment Application
• Disclosure of Ownership and Control Interest of Equity
• MHCP Provider Agreement
• CFSS Agency Agreement Addendum
• CFSS Agency Assurance Statement
• Designation or Billing Person
• Your surety bond(s)
• Copy of liability insurance policies
• Certificate of Registration for your business
• Copy of Workers Compensation insurance

The Recuperative Care agency must submit the following forms:

• Recuperative Care Provider Assurance Statement
• Recuperative Care Health Services Provider Acknowledgement
• Copy of the PERA approval letter
• Copy of your surety bond
• Organization - Provider Enrollment application
• Disclosure of Ownership and Control Interest
• Fee for Service Only or Fee for Service and Managed Care Organization In-Network Provider agreement