Health Care Service Contractor and Dental & Optometrical Service Bond

Oregon Health Care Service Contractor and Dental & Optometrical Service Bond

The Department of Consumer & Business Services requires a $260,000 Health Care Service Contractor Bond or a $55,000 Dental and Optometrical Service Bond as part of the certification process for health care service contractors. Purchase your bond with Jet Insurance Company for the lowest rates in the industry.

APPLY FOR BOND

We know the certification process for health care services is extensive and thorough. Jet has simplified the application and lowered pricing to account for the degree of difficulty it takes to become licensed for the DCBS.

Cost of Health Care Service Contractor Bonds

At Jet, the $260,000 Health Care Service Contractor Bond price starts at $260 monthly and $2,600 if paid in full for an annual term. The $55,000 Dental and Optometrical Service Bond starts at $55 per month or annual payments as low as $550. The DCBS assigns a lower limit to accommodate specialized services that have less liability than other general health care services, such as dentists, optometrists, acupuncturists, chiropractors, massage therapists, and naturopathic practitioners. 

Health Care Service Contractor and Dental & Optometrical Service Bond
Bond Type Bond Limit Monthly Annual
Health Care Service $260,000 $260 $2,600
Dental Service $55,000 $55 $550
Optometrical Service $55,000 $55 $550
 

The cost of a bond is largely based on the bond limit and the personal credit of the ownership. Other companies take high-limit bonds and put the contractors through the ringer just to apply. Then, the application goes through an extensive underwriting process to determine rates. Jet knows becoming a certified health service contractor is a rigorous process so we’ve made the bond application process simple and the underwriting quick. Apply today through our step-by-step application to find the rate that is approved for you.

The Bond Limit Required by the DCBS

Through ORS 731.616, the director of the DCBS may increase the amount of financial assurance required as needed to account for market fluctuation of the assets. To avoid the assets from dropping below the amount required for licensing, the director may raise the bond limit to balance the value. 

Currently, the director has set the limit at $260,000 for Health Care Service Contractor Bonds and at $55,000 for Dental or Optometrical Service Bonds. 

How to File the Health Care Service Contractor Bond

As part of the certification process, the bond satisfies the financial assurance required by the Department of Consumer & Business Services. It must be submitted as part of initial certification or renewal, if the bond term has ended. Jet will complete the bond form with the surety information, signatures, and seal; however, your signature is still required before it can be accepted by the DCBS. Our office will mail your original bond to you to sign. 

Once the original bond is signed, you may send it to the following address: 

Department of Consumer & Business Services
Division of Financial Regulation
P.O. Box 14480
Salem, Or 97309

Who Needs the Dental & Optometrical Service Bond and Health Care Service Contractor Bond?

The $260,000 bond is required by the DCBS for health care service contractors, a corporation with a close relationship with a group of licensed doctors or hospitals that supply health care services. 

However, the $55,000 bond applies only to a select few health care services. Dental and optometrical services fall into this category, as well as acupuncture, massage therapy, naturopathic medicine, and chiropractic services, also known as complementary services. 

Why are Health Care Service Contractor Bonds Required?

The DCBS has a financial assurance requirement to make sure that health care service contractors follow their certification requirements and present high quality care to their patients. The bond stands as a guarantee that patients will receive payment for any fraudulent or negligent dealings from the health care service contractor. 

Currently, the director of the DCBS has set the limit at $260,000 for Health Care Service Contractor Bonds and at $55,000 for Dental or Optometrical Service Bonds. The director may increase the amount of financial assurance required as needed per ORS 731.616, as long as the limit is not lower than the required amount of $250,000 and $50,000, respectively. 

Can I Cancel a Health Care Service Bond?

Yes; Jet Insurance Company will process your request to cancel and calculate the premium that can be returned to you. Not only does Jet offer the lowest rate approved when you are purchasing your bond, we try to save you every penny possible after cancellation. 

Unlike other companies, who make sure that their brokerage fees are held back before sending you the return, Jet does not deduct any cancellation fees from the money you are owed back. And since we don’t take broker fees in the first place, those fees won’t be taken from the premium either. 

Once a cancellation request has been submitted to the DCBS, the bond will remain in effect for an additional 60 days. This period of time is calculated as part of the earned premium, not towards the refund, since the bond is still providing coverage.

How to Avoid Claims Against a Health Care Service Contractor Bond

Claims against a bond are usually a result of failure to uphold the certification requirements. For health care service contractors and dental/optometrical services, the DCBS lists the Oregon Revised Statutes (ORS) 750.005 - 750.095 as the standard for a health care practice. The best way to avoid claims is to follow these statutes, some of which include: 

  • Maintaining a valid certificate of authority
  • Holding insurance in the proper amount, $2.5 million for health care service contractors, $1 million for dental, optometrical, and complementary services
  • Upon initial certification, the contractor must have additional capital or surplus of at least $500,000

If the statutes are not observed, claims may be filed against your bond. The bond ensures that any damages caused by the health care service contractor would be repaid to the claimant. However, it is the responsibility of the health care service contractor to restore the bond to its full limit. 

When Jet receives a claim, we begin the standard claims procedure for the state of Oregon. Within 30 days Jet will acknowledge the claim, and give instructions, necessary paperwork (for example, the proof of loss form), and reply to the claimant regarding the claim. Within 45 days, Jet will complete the investigation or request additional time to investigate. 

Once a correctly completed proof of loss form has been submitted, it usually takes 30 days for our claims department to accept or deny the claim. Additional time may be requested to continue the investigation until the claim is resolved. 

 

Health Care Service Contractor and Dental & Optometrical Service Bond Form