Some states require certain Medicaid providers to post a state Medicaid Provider Bond before they can bill that state’s Medicaid program directly, separate from and in addition to the federal $50,000 DMEPOS bond that Medicare requires nationwide of DME suppliers.
This isn’t a DME-specific bond type. Which provider categories must carry it varies by state. See each state’s “Who Needs It?” section below. DME suppliers are commonly among them, but so are other Medicaid provider types in some states. If you bill Medicaid directly in Alabama, Florida, Minnesota, or Texas, check whether this bond applies to you, and if you also supply DME, remember it’s required in addition to (not instead of) your federal DMEPOS bond.
Why Some States Require an Additional Bond
The federal DMEPOS bond satisfies CMS’s requirement to enroll as a Medicare DME supplier nationwide. However, it does not automatically satisfy any state’s own Medicaid enrollment requirements.
Each state sets its own rules for who must post this bond. Alabama and Minnesota name DME and DMEPOS suppliers directly in their regulations. Florida’s Agency for Health Care Administration applies the requirement to several named risk categories, DME suppliers among them. By contrast, Texas takes a different, discretionary approach: HHSC can require the bond of any provider type with a documented history of fraud, waste, or of an individual provider based on their own conduct. DME suppliers are commonly asked for it in practice, but it isn’t an automatic category-based rule the way it is in the other three states.
Texas’s own Medicaid Provider Surety Bond form makes one thing explicit for every state: a bond obtained for Medicare accreditation, with CMS as obligee, will not satisfy a state’s requirement, because the two bonds protect two different programs.
If you already carry the federal DMEPOS bond and also bill one of these states’ Medicaid programs directly, check below whether you need this second bond as well.
State-by-State Bond Requirements
Each of these four bonds is issued by a different obligee, under different state authority, at a different price point. Here’s what applies in each state.
Alabama Medicaid DME and Medical Supply Provider Bond
| Bond Name | Alabama Medicaid DME and Medical Supply Provider Bond |
| Bond Amount | $50,000 per National Provider Identifier (NPI) |
| Who Needs It? | DME and medical supply providers enrolling or revalidating with Alabama Medicaid |
| Obligee | State of Alabama Medicaid Agency |
| Bond Term | One year |
| Renewal | Annually, before the day and month the bond was first effective; renewal proof must reach Alabama Medicaid’s fiscal agent at least 30 days before the bond’s termination date |
| Governing Regulation | Ala. Admin. Code r. 560-X-13-.02 |
| Processing | Instant Issue available |
Alabama requires this bond of DME and medical supply providers enrolling in Alabama Medicaid, effective since October 1, 2010. A lapse in coverage results in payment denial and can lead to termination from the program, so renewing on time matters.
A few provider categories are exempt, including providers who have been enrolled as Alabama Medicaid providers for five or more years with no history of impropriety government-operated DMEPOS providers, state-licensed orthotic/prosthetic and physical/occupational therapy private practices billing only their own patients, physicians and non-physician practitioners, pharmacy and phototherapy providers, Federally Qualified Health Centers, and providers who received $100,000 or less in Medicaid payments over the two prior calendar years. If you’re not sure whether an exemption applies to your business, contact us and we’ll help you confirm.
Qualified Alabama applicants can obtain this bond online through American Surety Bonds Agency for as low as $500/yr.
Florida Medicaid Provider Bond
| Bond Name | Florida Medicaid Provider Bond (AHCA Form 5000-1064) |
| Bond Amount | Up to $50,000 (the statutory cap is $50,000 or the provider’s total Medicaid billing for the current or most recent calendar year, whichever is greater) |
| Who Needs It? | Florida Medicaid providers AHCA identifies as moderate- or high-risk. Per AHCA’s Provider Enrollment Policy, this currently includes DME suppliers, Behavior Analysis Groups, and Independent Clinical Laboratories (first year of enrollment only), among others AHCA may designate. |
| Obligee | Agency for Health Care Administration (AHCA), State of Florida |
| Bond Term | One year |
| Renewal | Annually, maintained for as long as you remain an active Florida Medicaid provider |
| Governing Regulation | Fla. Stat. § 409.907(7); AHCA Medicaid Provider Enrollment Policy |
| Processing | Instant Issue available |
Florida law gives AHCA authority to require a surety bond from fee-for-service Medicaid providers it identifies as moderate or high risk. The statute itself doesn’t name specific provider types: that’s left to AHCA’s own Medicaid Provider Enrollment Policy, which currently designates DME suppliers, Behavior Analysis Groups, and Independent Clinical Laboratories (in their first year of enrollment only) as subject to this requirement, filed on AHCA Form 5000-1064. AHCA can add other categories to this list at its discretion.
That said, government-owned DME providers, enrolled pharmacies, and physician-owned orthopedic groups enrolling only for orthotics and prosthetics are exempt from this specific bond.
For qualified Florida applicants, American Surety Bonds Agency offers this bond online for as low as $500/yr.
Minnesota Medicaid DMEPOS Supplier Bond
| Bond Name | Minnesota Medicaid DMEPOS Supplier Bond (Form DHS-3869-ENG) |
| Bond Amount | $50,000 (initial enrollment, or prior-year Medicaid revenue up to $300,000); $100,000 (revalidation with prior-year Medicaid revenue over $300,000) |
| Who Needs It? | All durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers enrolling in Minnesota Medical Assistance |
| Obligee | Minnesota Department of Human Services |
| Bond Term | One year |
| Renewal | Annually; general provider revalidation occurs at least once every five years |
| Governing Regulation | Minn. Stat. § 256B.04, subd. 21(l) |
| Processing | Instant Issue available |
Minnesota statute directly names DMEPOS suppliers as requiring this annually renewed bond to enroll in Minnesota Medical Assistance. The required amount steps up from $50,000 to $100,000 at revalidation if your prior-year Medicaid revenue exceeded $300,000.
Still, Federally Qualified Health Centers, home health agencies, Indian Health Service providers, pharmacies, and rural health clinics are exempt.
American Surety Bonds Agency issues this bond online to qualified Minnesota applicants for as low as $500/yr.
Texas Medicaid Provider Bond
| Bond Name | Texas Medicaid Provider Surety Bond |
| Bond Amount | $50,000 per enrolled location (increases by $50,000 for each additional location) |
| Who Needs It? | Any Texas Medicaid provider type HHSC identifies as having a significant history of, or potential for, fraud, waste, or abuse, or any individual provider HHSC determines should be bonded based on their own conduct. This is a discretionary, risk-based requirement rather than a fixed list of provider types; DME suppliers are commonly required to carry it in practice. |
| Obligee | Texas Health and Human Services Commission (HHSC) |
| Bond Term | One year, continuous, and in effect at the time your enrollment application is submitted |
| Renewal | Annually |
| Governing Regulation | 1 Texas Administrative Code § 352.15 |
| Processing | Instant Issue available |
Texas’s rule is discretionary rather than a fixed list: HHSC can require this bond of any Medicaid provider type with a documented fraud, waste, or abuse risk, or of an individual provider based on their own conduct, such as falsifying information. DME suppliers are commonly asked for this bond in practice (both major sureties ASBA works with catalog a standard DME-specific version of it), but it isn’t an automatic requirement solely from being a DME supplier the way it is in Alabama or Minnesota. The bond’s own form is explicit that a bond obtained for Medicare/CMS purposes will not satisfy this state requirement: the two are not interchangeable.
Qualified Texas applicants can obtain this bond online through American Surety Bonds Agency for as low as $250/yr.
Why Choose American Surety Bonds Agency?
American Surety Bonds Agency has been helping businesses meet their surety bond requirements for decades. Whether you’re applying for your first Medicaid enrollment or renewing an existing one, our experienced team is here to help make the bonding process simple and efficient.
When you choose American Surety Bonds Agency, you’ll receive:
- Instant Issue available for qualified applicants
- Competitive rates
- Fast online application
- Fast turnaround
- Experienced surety professionals available to answer questions
- Convenient annual renewal reminders
Above all, we’re committed to helping businesses obtain the bonds they need with responsive service and experienced guidance every step of the way.
Frequently Asked Questions
| How much is the bond? | Depending on your state, this bond ranges from $50,000 to $100,000. See the table for your state above. |
| How much does the bond cost? | Estimated premiums start as low as $250/yr (Texas) or $500/yr (Alabama, Florida, Minnesota) through our Instant Issue platform. |
| When does the bond renew? | All four bonds renew annually. |
| What does the bond cover? | It protects the state’s Medicaid program, not your business, by giving the state a source of recovery if you bill improperly and fail to repay funds owed. |
| Who requires the bond? | The state Medicaid agency named as obligee: the Alabama Medicaid Agency, Florida’s Agency for Health Care Administration, the Minnesota Department of Human Services, or the Texas Health and Human Services Commission, depending on your state. |
| Does my federal DMEPOS bond satisfy this requirement? | No. The federal DMEPOS bond names CMS as obligee and only satisfies Medicare enrollment. These four state bonds name the state Medicaid agency as obligee and are required separately if you bill that state’s Medicaid program directly. |
| Which states require this additional bond? | Alabama, Florida, Minnesota, and Texas all have a Medicaid Provider Bond requirement that regularly applies to DME suppliers. Alabama and Minnesota name DME/DMEPOS suppliers directly; Florida applies it to several named risk categories including DME; Texas applies it on a discretionary, risk-based basis rather than an automatic DME-category rule. Other states may have similar requirements for other provider categories, so contact us if you’re not sure about yours. |
| Is this a DME-specific bond? | Not exactly. It’s a state Medicaid Provider Bond; DME suppliers are one of the groups most commonly required to carry it, alongside other provider categories in some states. |
| Can I obtain the bond online? | Yes. We offer all four of these bonds through a secure Instant Issue application. |
Looking for a Different Bond?
This guide covers the state Medicaid Provider Bonds only. If you’re setting up your federal Medicare enrollment or bidding on a Competitive Bidding Program contract area, you’ll need a different bond.
Read Our Federal DMEPOS Bond Guide
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