Oregon Prescription Drug Wholesaler Bond
Class I Prescription Drug Wholesalers in Oregon must purchase a $100,000 bond for each location as required by the Oregon Board of Pharmacy. The Oregon Prescription Drug Wholesaler Bond is a guarantee the surety will pay any unpaid penalties, fees and other costs to the Pharmacy Board, should the wholesaler fail to do so.
Jet offers low monthly payments and has simplified the bonding process without any brokers in the middle.
What Is The Lowest Price For An Oregon Prescription Drug Wholesaler Bond?
Oregon Prescription Drug Wholesaler Bonds start at $75 monthly exclusively with Jet Insurance. Prepaid multi-year terms are also available with a $750 bond rate for a year. Jet can offer these rates by cutting out brokers and their commissions from the process and going directly to prescription drug wholesalers.
| Bond Limit | Monthly | Annual |
|---|---|---|
| $100,000 | $75 | $750 |
Rates do depend on the personal credit of the wholesale businesses ownership. The price in the chart above is dependent on a good credit score from the owner. For those without decent credit, Jet is still much lower than the other surety carriers for any level of personal credit. For operations with multiple locations the rate incrementally goes up with each location. For example, if another $100,000 is required for a second location, Jet would need an additional $75 monthly for qualified applicants.
How Does The Bond Get Filed To Oregon Board of Pharmacy?
For wholesalers applying to become distributors of pharmaceuticals in Oregon the Board of Pharmacy prefers the original bond form be sent in with the wholesaler application. Jet will send an original sealed and signed bond form directly to the wholesaler following purchase of the bond.
That said, Jet can also send the bond form directly to the Board whether you are a new applicant or a current wholesaler in Oregon. While most agents, brokers, and carriers just mail you an original bond to deal with on your own, and at your expense, Jet will send the form electronically to the Board of Pharmacy immediately getting the new bond on file.
Physical bond forms are sent to the address below:
State of Oregon Board of Pharmacy
800 NE Oregon St Suite 150
Portland, OR 97232
When Does The Wholesaler Bond Expire?
The bond is a continuous form, so once filed to the Oregon Board of Pharmacy it remains in effect. The surety company has to submit a cancellation notice to the Pharmacy board and will do so if the surety does not receive their renewal payment.
By selecting Jet’s monthly option the bond will never expire, so long as the automatic payments go through, the bond stays active.
What Happens If A Monthly Payment Doesn't Go Through?
There is no need to have any immediate worries with Jet. We give all our customers ample time to get the proper card on file. If Jet needs to file cancellation to the Oregon Board of Pharmacy there is a 30 day grace period where the wholesaler can remain active before the bond cancels. Should Jet’s customer make payment in that time period, then Jet simply sends a notice of reinstatement to the board.
How Do I Cancel My Bond With Jet?
A claim on the prescription wholesaler bond is made by the Oregon Board of Pharmacy should the wholesaler not pay any financial penalty, fees or incurred cost to the Pharmacy Board. To avoid any claim the wholesaler should not break any regulation set forth by the Oregon Secretary of State, for example purchasing or selling drugs to persons not legally authorized to sell or purchase drugs.
The Pharmacy Board will send an investigator should the board receive a complaint from the public. The investigator will create a report for the Board to review and take action on. The wholesaler will have a chance to dispute facts, but must abide by the Board’s disciplinary action, should an action be necessary.
There is not a definitive timeline for an investigation or decision by the board. The board states that the complexity of the case and cooperativeness of individuals involved can affect the timeline to handle any complaint.
How To Avoid Oregon Prescription Drug Wholesaler Bond Claims?
A claim on the prescription wholesaler bond is made by the Oregon Board of Pharmacy should the wholesaler not pay any financial penalty, fees or incurred cost to the Pharmacy Board. To avoid any claim the wholesaler should not break any regulation set forth by the Oregon Secretary of State, for example purchasing or selling drugs to persons not legally authorized to sell or purchase drugs.
The Pharmacy Board will send an investigator should the board receive a complaint from the public. The investigator will create a report for the Board to review and take action on. The wholesaler will have a chance to dispute facts, but must abide by the Board’s disciplinary action, should an action be necessary.
There is not a definitive timeline for an investigation or decision by the board. The board states that the complexity of the case and cooperativeness of individuals involved can affect the timeline to handle any complaint.
What Do I Do If The Oregon Board of Pharmacy Penalizes Me?
The wholesaler must make payment to the Pharmacy board within 30 days if assessed with any monetary penalty. After that 30 day period, the board will go make a claim on the surety bond for payment. While Jet’s claims department always works hard to defend our business owner clients from frivolous claims, there is only so much we can do in the case of a government agency claiming it did not receive their fees.
This does not leave the wholesaler off of the hook. Unlike a business insurance policy, which protects the prescription drug wholesaler from unforeseen accidents, this surety bond protects the board and ultimately the public from the unlawful actions of the wholesaler. The wholesalers are ultimately responsible for their own actions and therefore must reimburse the surety company for any claims paid. Think of the surety as providing you a letter of credit that you need to demonstrate to the Pharmacy Board that it’s safe to license you to distribute drugs to the public.
If Jet and any other surety carrier are not reimbursed the bond will be cancelled. The wholesaler must make the bond amount whole again by repaying the surety the amount due. A wholesaler without an active surety bond cannot operate in the State of Oregon.
One way or another the wholesaler must abide by any financial penalty levied against themselves by the board or go out of business.
Why Is The Oregon Prescription Drug Wholesaler Bond Required?
The Oregon Board of Pharmacy exists to protect the public by regulating the manufacture and distribution of drugs. The Prescription Drug Wholesaler Bond guarantees penalty fee payment for infractions caused by the wholesaler. These fees are in place as a deterrent for dealers to abide by regulations that are meant to keep people safe. As discussed above a wholesaler’s best option is to avoid any penalty, which if not rectified will end that operation.
The bond is only required for Class I Wholesalers and this is due to the added risks involved in the drugs Class I Wholesalers are allowed to distribute. That classification allows for the business to deal the following substances:
- Prescription Drugs
- Controlled Drugs
- Medicinal Chemicals
- Poisons
There is a way around the bonding requirement and that is through VAWD Accreditation. There is a lengthy application process for the accreditation with strict guidelines. VAWD fees for the first year are $5,500 and $1,000 each year after to participate. The bonding option is less expensive and can be obtained through a simple online application.
For any additional location the wholesaler operates within the board requires an additional $100,000 surety bond must be obtained.
How Does The Application Process Work With Jet?
Jet’s online application allows you to apply for your bond online in about 3 minutes. Jet does perform a credit check during the underwriting process and may require more information to deliver our rate. For the Prescription Drug Wholesaler Bond other carriers and agencies will require lengthy paper applications, third party finance agreements and 24+ hour turnaround time.
How To Renew The Bond?
Monthly Terms
The simple renewal process with Jet and can be avoided altogether with our monthly payment process. The $100,000 Prescription Drug Wholesaler Bond is continuous and will remain in place until Jet actively files cancellation with the Pharmacy Board. Jet can lock in monthly rates for dealers, so as long as the credit card you provide stays active, the bond stays active.
Annual Terms
Jet will send an invoice via mail and email to all wholesalers who purchase an annual term. Jet’s renewal process is simplified to the point where it will only take a minute for the wholesaler to pay online and receive confirmation and a validation card immediately.
Are There Other Bonds That A Principal Needs?
If the wholesaler operates in the following list of states a bond would be needed for each.
| State | Bond Requirements | Annual Gross Reciepts |
|---|---|---|
| Arizona | $100k Full Service Drug Wholesaler Bond | N/A Gross Receipts |
| California | $100k Prescription Drug Wholesaler Bond | Over $10 million Gross Receipts |
| California | $25k Prescription Drug Wholesaler Bond | Under $10 million Gross Receipts |
| Florida | $100k Prescription Drug Wholesale Distributor Bond | Over $10 million Gross Receipts |
| Florida | $25k Prescription Drug Wholesale Distributor Bond | Under $10 million Gross Receipts |
| Indiana | Licensed Wholesale Drug Distributor Bond | N/A Gross Receipts |
| Iowa | $100k Wholesale Distributor (Pharmacy) Bond | Over $10 million Gross Receipts |
| Iowa | $25k Wholesale Distributor (Pharmacy) Bond | Under $10 million Gross Receipts |
| Maryland | $100k Prescription Drug Wholesale Distributor Bond | Over $10 million Gross Receipts |
| Maryland | $25k Prescription Drug Wholesale Distributor Bond | Under $10 million Gross Receipts |
| Nebraska | Wholesale Drug Distributor Bond | N/A Gross Receipts |
| Nevada | $100k Pharmaceutical Wholesaler Bond | N/A Gross Receipts |
| North Dakota | Licensed Wholesale Drug Distributor Bond | N/A Gross Receipts |
| Oregon | $100k Prescription Drug Wholesaler Bond | N/A Gross Receipts |
| Wisconsin | $5k Prescription Drug Wholesale Distributor Bond | N/A Gross Receipts |
