Alabama Medicaid Durable Medical Equipment and Medical Supply Provider Bond

Alabama Medicaid Durable Medical Equipment and Medical Supply Provider Bond

The Alabama Medicaid Agency requires providers of Durable Medical Equipment (DME) and medical items including prosthetics, orthotics, and supplies (POS) contracted with Medicaid to have the Home Medical Equipment License. Part of getting and maintaining the license is securing a surety bond. Jet Insurance Company offers the Alabama Medicaid DME and Medical Supply Provider Bond as a guarantee of financial security to the Medicaid Agency and those utilizing medical equipment and supplies. A bond is needed for each National Provider Identifier (NPI) location.

APPLY FOR BOND

Applying for the bond with Jet ensures a smooth process by eliminating middlemen agents and brokers and offering claim defense should any arise.

What Is the Bond Limit and Cost of the Alabama Medicaid DME and Medical Supply Provider Bond?

With Jet, the bond costs as low as $500 for one year or $50 per month. A credit check must be completed to get you an approved rate, but it will not affect your score. 

The bond limit is a minimum of $50,000 but can be greater if the applicant has a past felony conviction, revoked license, or other disciplinary actions. The chart below reflects rates in the preferred credit tier for different payment terms for a $50,000 bond.

Bond TermCost
Monthly$50
1 Year$500
2 Years$875
AL Medical Supply Bond Cost

Jet is the only surety carrier in Alabama that offers monthly payment plans on this bond with no high down payment required. You can lock in a low rate for years to come.

Why Is the Alabama Medicaid DMEPOS Bond Required?

The Alabama Medicaid Agency exists to enforce Medicaid regulations. Providers of Durable Medical Equipment, supplies, appliances, prosthetics, orthotics, and pedorthics are expected to comply with the Alabama Medicaid Agency Administrative Code Chapter 560-x-13 and part of those regulations is holding a surety bond to ensure reimbursement is available to the Alabama Medicaid Agency or the public if financial loss occurs at the hands of the bonded provider.


There are some exemptions from the bond including those who have been providers for the last five years as long as there is no record of misconduct and all refund requests have been paid. If Medicaid has noticed improper billing or other fraudulent actions, the provider will once again be required to obtain the Alabama Medicaid DMEPOS Bond. Also, if you are a provider who receives $100,000 or less in Medicaid payment in the past two calendar years and have been bonded for at least three years, you can apply for exemption from the bond requirement. All exemptions from the bond are listed in Rule No. 560-X-13-.02, Section 6 of the Alabama Medicaid Agency Administrative Code.

How to Apply for the Alabama Medicaid DME and Medical Supply Provider Bond With Jet

Jet’s application can be completed in minutes! Fill out the required information, including your social security number for the credit check (which doesn’t affect your credit). After a quick review, Jet will send you an approved rate via email which can be purchased directly online.

How Does the DMEPOS Provider Bond Get Filed to the Alabama Medicaid Agency?

Once payment is complete, a bond form will be available immediately. You must upload the Durable Medical Equipment and Medical Supply Provider Bond, along with any other paperwork, to the Alabama Medicaid Interactive Web Portal. 

Gainwell Technologies, formerly known as DXC Technology, is responsible for the enrollment of providers in the Medicaid program and maintaining provider documentation and information in the Alabama Medicaid Management Information System (AMMIS). For additional information and directions on uploading license documentation and the surety bond, refer to the AMMIS Provider Enrollment Web Portal User Manual.

Can I Cancel My Medicaid DME and Medical Supply Provider Bond and Get a Refund?

Yes, Jet allows you to cancel the bond at any time. All we need is a written request, which can be done via email: [email protected]. Once we have it in writing, Jet sends a written notice to the Alabama Medicaid Agency who keeps the bond on file for 30 days. 

Any applicable refund will take that 30-day cancelation period into account, with the unearned premium being returned to you after that time. Monthly payments will end after the 30-day period.

How to Renew the Medicaid DME and Medical Supply Provider Bond

If you are paying monthly there is no renewal process. As long as Jet continually receives payment the bond will stay effective until cancellation is requested. Due to the bond form requiring an ending term, the monthly payment term ends after 5 years, which should be enough to get you to the point you no longer need the bond. 

If you paid for a one-year or multi-year term, Jet sends you a renewal notice via email and mail. Bonds are to be renewed before the month and day that the original bond was effective to avoid any lapse in coverage or potential license termination. A continuation certificate does need to be filed through your portal and Jet will provide you with that paperwork.

How Does a Provider Avoid Bond Claims?

Claims are easily avoidable by following the regulations set in place within the Alabama Medicaid Agency Administrative Code Chapter 560-x-13. Claims would arise for reasons such as:

Claims are brought on by the Alabama Medicaid Agency either for their own reasons or on behalf of a person who was directly impacted by the provider’s actions. Typically, when issues arise, claims can be avoided by cooperating with the Medicaid Agency. However, the Alabama Medicaid Agency has jurisdiction to terminate the license for failure of the provider to follow the applicable statutes.

What Happens if I Get a Medicaid DME and Medical Supply Provider Bond Claim?

Should the Alabama Medicaid Agency determine the bond should pay out to the claimant, Jet will still perform our due diligence by thoroughly reviewing all the details. If Jet deems the claim to be valid, we will pay out the claim up to the full $50,000 bond limit. 

We will need to be reimbursed for the claim payout, as the bond acts as an extension of credit and you are responsible for your actions as a provider. Failure to pay back the claim and restore the bond to the full limit will result in future complications obtaining the required license and bond to provide Durable Medical Equipment, supplies, appliances, prosthetics, orthotics, and pedorthics.

Alabama Medicaid Durable Medical Equipment and Medical Supply Provider Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: