Pennsylvania Pharmacy Wholesaler Bonds

Get a Free Quote for Your Pennsylvania Pharmacy Wholesaler Bond Today

Why is a Pennsylvania Pharmacy Wholesaler Bond Required?

The Department of Health is responsible for the licensing regulations for any company manufacturing or distributing drugs, medical devices, even medicated cosmetics.

Not every license is required to purchase a surety bond.

When surety bond is required, it's typically the results of the Department receiving complaints against licensed distributors for acts of purposeful financial fraud.

The surety bond is the primary tool the Department of Health has to hold licensed distributors accountable to the promise they're making. It's not realistic to monitor every licensee.

However, despite the licensing process and purchasing a surety bond, there are distributors who purposefully and financially harm their customers to increase profits every year.

Examples of these fraudulent actions include:

• Selling mislabeled drugs or drugs from the incorrect pharmaceutical companies
• Selling drugs with container defects
• Selling drugs that have been stored in the incorrect temperature
• Breaking any of the FDA regulations for a drug and still selling it

If a distributor engages in any of these or similar actions, the customer (hospital or pharmacy) can make a claim against the distributor's surety bond for financial compensation to replace the purchased drugs.

However, any one claim and the sum of all claims is capped by the bond amount which is set by the Pennsylvania Department of Health.

 

How Much Does A Pennsylvania Wholesale Drug Distributor Surety Bond Cost?

 

What is the Bond Amount

The Department of Health has set the bond amount at $100,000.

If your company has gross receipts from the previous tax year less than $10,000,000, you can request a lower bond amount.

You must provide either:

• Official documentation proving your previous years gross receipts
• Or have a CPA provide a financial review proving your gross receipts

The Department will review your numbers and tell you a lower bond amount.

The minimum is $25,000.

 

How a Surety Bond Price Is Determined

Because of the nature of the business and the bond amount, these bonds are credit driven and will be priced by a surety.

A surety is an insurance company that underwrites prescription drug distributor bonds.

The surety will use the following factors to determine a rate:

• The personal credit of the owner or owners
• Staffing agency industry experience
• Prior bond claims if any of the ownership team has been bonded in the past

This rate multiplied by the bond amount will be the price you pay.

 

How To Save Thousands Of Dollars Purchasing Your Bond

We are Surety Bonds Direct, a specialized surety agency. We work with the highest A-rated sureties and price shop for you.

Every surety is different in how they assess an applicant. And it doesn't make sense, but the rates different sureties quote can be different by one to three percentage points.

As you'll see, this can easily be thousands of dollars difference in the price you pay.

 

$100,000 Bond Price Examples

Here's a table with price examples so you can see how much different rates affect the price.

Remember, it's our job to find you the lowest possible price, so let's look at example pricing.

You can see how big of a difference even half a percentage point can make.

These prices are one payment for a 12 month bond term. More on the bond term in the next section.

Click here and fill out our online quote form or call a bond specialist at 1-800-608-9950. We will get you, your exact price and there's no obligation to purchase once we do.

Make sure you ask our bond specialists about financing options which may be available to you.

 

How Long Does It Take To Get Your Pennsylvania Wholesale Drug Distributor Bond?

Once you purchase your bond, our issuance team will prepare your bond with the:

• Correct bond form
• The required signatures and seals
• The power of attorney

The Employment and Personal Services will accept a copy of the bond. This means once your bond is ready, we can email it to you.

The issuance process takes less than one business day to complete.

 

How Long Does a Wholesale Drug Distributor Surety Bond Last?

The wholesale drug distributor bond have a bond term of 12 months from the effective date.

You'll choose the effective date (activation date) during the checkout process. And in 12 months you'll need to renew your bond.

This is another great reason to work with a surety agency like Surety Bonds Direct. You're assigned a bond specialist who manages your bond for you.

Your bond specialist will contact you 30 to 40 days in advance of your bonds expiration date to help you get it renewed. The renewal process requires you to pay a renewal premium.

If you need to adjust the bond amount for any reason, your bond specialist will help you.

 

Pharmacy Wholesaler Bonds And Getting Your Pennsylvania Business License/Registration

The licensing process has a number of requirements. At a high level these license requirements include the:

• Provide your full legal name and business name
• Provide all trade names if applicable
• Outline the ownership of the company
• Provide proof of the appropriate facility meeting minimum requirements
• Have procedures in place for the examination of materials when accepting outside shipping
• Have procedures in place for handling damaged or mislabelled material
• Have your record keeping in order according to the rules
• Meet compliance requirements for Federal, State and local law