IN HB1230

Requires Medicaid transportation providers (common carrier ambulatory, common carrier nonambulatory, and taxi services) to obtain a $50,000 surety bond beginning January 1, 2012, with exemptions for 501(c)(3) nonprofit organizations and underserved area providers granted waivers by the secretary.

Bond must be continuous for 3 years and allow the office of Medicaid policy and planning to seek payment from the surety for Medicaid overpayments and false claims submitted by the transportation provider.

Surety must pay claims within 30 days of written notice from the office, not to exceed the full $50,000 bond amount, plus accrued interest.

Bond remains in effect through the 3-year coverage period even if the provider's Medicaid agreement is not renewed or terminated, and the surety stays liable for claims submitted during the bond term.

Office may revoke or deny a provider agreement for non-compliance with bond requirements or if the provider cancels the bond; effective July 1, 2011.