2023 Indiana Code › Title 12. Human Services › Article 15. Medicaid › Chapter 11. Provider Agreements and Competitive Bidding › 12-15-11-2.5. Surety Bond Requirement for Certain Transportation Providers; Requirements; Revocation or Denial of Provider Agreement for Failure to Comply; Demonstration of Compliance; Refund

Sec. 2.5. (a) As used in this section, "transportation provider" means a person:
(1) that is a common carrier, including a person that provides transportation by a taxi; and
(2) that:
(A) is enrolled; or
(B) applies for enrollment;
in the Medicaid program as a Medicaid provider to render transportation services to Medicaid recipients.
(b) This section does not apply to a transportation provider that is:
(1) exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code;
(2) at the discretion of the secretary, granted a waiver of the bond requirement under subsection (c) to provide transportation services in a federal or state designated underserved area;
(3) at the discretion of the secretary, granted a waiver of the bond requirement under subsection (c) based on the determination that the provider does not pose a significant risk of submitting fraudulent or false Medicaid claims;
(4) owned or controlled by a person that is licensed or certified by an entity described in IC 25-0.5-11;
(5) owned or controlled by a pharmacy that has a permit issued under IC 25-26-13;
(6) owned or controlled by a hospital licensed under IC 16-21; or
(7) required under federal law to obtain a surety bond to cover Medicaid overpayments and false Medicaid claims and has obtained a bond that complies with the applicable federal law.
(c) A transportation provider that applies for enrollment as a Medicaid provider:
(1) as a new applicant;
(2) due to a change in ownership of a transportation provider currently enrolled; or
(3) due to a purchase or transfer of the assets of a transportation provider currently enrolled;
shall, at the time the transportation provider files a provider agreement with the office, submit to the office a surety bond that meets the requirements of subsection (d) and is issued by a surety that is authorized by the office of the secretary.
(d) The following apply to a surety bond filed with the office under this section:
(1) The surety bond must be continuously in effect for at least three (3) years after the application is made as described in subsection (c).
(2) The surety bond must provide coverage for liability of at least fifty thousand dollars ($50,000).
(3) The surety bond must name the:
(A) transportation provider as the principal;
(B) office as the obligee; and
(C) person that issues the surety bond, including the person's heirs, executors, administrators, successors, and assignees, jointly and severally, as surety.
(4) The surety bond must provide the surety's name, street address or post office box number, city, state, and ZIP code.
(5) The surety bond must provide that the surety is liable under the surety bond for a duplicate, erroneous, or false Medicaid claim paid by the office or its fiscal agent to the transportation provider during the term of the surety bond.
(6) The surety bond must provide that the bond may not be void on a first recovery, but that suits may be instituted until the penalty is exhausted.
(7) The surety bond must guarantee that the surety will, not later than thirty (30) days after the surety receives written notice from the office containing sufficient evidence to establish the surety's liability under the surety bond as described in subdivision (5), pay to the office the following amounts, not to exceed the full amount of the surety bond:
(A) The amount of the duplicate, erroneous, or false claim that was previously paid by the office or its fiscal agent to the transportation provider, plus accrued interest.
(B) An assessment imposed under IC 12-15-22 by the office on the transportation provider.
(8) The surety bond must provide that if the transportation provider's provider agreement is not renewed or is terminated, the surety bond submitted by the transportation provider remains in effect until the last day of the surety bond coverage period and the surety remains liable for a duplicate, erroneous, or false claim paid by the office or its fiscal agent to the transportation provider during the term of the surety bond.
(9) The surety bond must provide that actions under the surety bond may be brought by the office or the attorney general.
(e) The office may revoke or deny a provider agreement for a transportation provider's failure to comply with this section.
(f) The office may revoke a provider agreement if a transportation provider cancels a surety bond required by this section.
(g) The office or its designee may, at any time, require a transportation provider to demonstrate compliance with this section.
(h) If:
(1) a surety has paid the office for a liability incurred under a surety bond under this section; and
(2) the transportation provider is subsequently successful in appealing the determination of liability;
the office shall, upon completion of the appellate process, refund the surety or the transportation provider the full amount paid for the liability.
As added by P.L.197-2013, SEC.11. Amended by P.L.3-2014, SEC.4.