If you are a Home Health Agency enrolled as Provider Type 14 and are not owned by a government municipality, Arkansas Department of Human Services requires that you must have an AR Home Health Agency (Provider Type 14) Medicaid Bond.
The bond value must be the greater of either (a) $50,000, or (b) 15% of the prior year’s claims payment to the provider. The bond cannot be written for less than $50,000.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The AR Home Health Agency (Type 14) Medicaid Bond holds you accountable for your business decisions.
By possessing an AR Home Health Agency (Type 14) Medicaid Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.