Oklahoma Long Term Care Facility Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Oklahoma Long Term Care Facility bond
At a Glance:
- Lowest Cost: 0.75% of the bond amount per year, based on the applicant’s credit
- Bond Amount: Greater than or equal to all resident funds held by the facility at any given time
- Who Needs it: All Oklahoma long term care facilities that hold residents’ personal funds and are Medicaid providers
- Purpose: To ensure that residents will receive compensation for financial harm if the facility mishandles their funds
- Who Regulates Long Term Care Facilities in Oklahoma: The Oklahoma Health Care Authority
Background
Oklahoma Administrative Code 317:30-3-2 requires all long term care facilities that receive Medicaid payments to enroll as a provider with the Oklahoma Health Care Authority. The Oklahoma legislature enacted the enrollment requirement to ensure that eligible long term care facilities receive compensation for services that are covered by Medicaid. To ensure residents are not taken advantage of, long term care facilities that manage residents’ funds must purchase and maintain a surety bond to be eligible to receive Medicaid payments. Additionally, federal statute 483.10 requires all long-term care facilities that hold resident funds in a trust account to purchase a surety bond or other similar form of security. However, the federal regulation leaves the implementation and enforcement of this requirement to individual states.
What is the Purpose of the Oklahoma Long Term Care Facility Bond?
Oklahoma requires long term care facilities that manage resident funds to purchase a surety bond before enrolling as a Medicaid provider. The bond ensures that residents will receive compensation for financial harm if the facility fails to abide by the regulations outlined in federal statute 483.10. Specifically, the bond protects residents if the facility in any way mismanages their funds. In short, the bond is a type of insurance that protects residents if the long term care facility acts unethically with their money.
How Can an Insurance Agent Obtain an Oklahoma Long Term Care Facility Bond?
BondExchange makes obtaining an Oklahoma Long Term Care Facility bond easy. Simply log in to your account and use our keyword search to find the “long term care” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Is a Credit Check Required for the Oklahoma Long Term Care Facility Bond?
Surety companies will run a credit check on the owners of the long term care facility to determine eligibility and pricing for the Oklahoma Long Term Care Facility bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Oklahoma Long Term Care Facility Bond Cost?
The Oklahoma Long Tern Care Facility bond can cost anywhere between 0.75% to 7% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $20,000 bond requirement.
$20,000 Long Term Care Facility Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $150 | $15 |
| 625 – 719 | $200 | $20 |
| 600 – 624 | $500 | $50 |
| 575 – 599 | $600 | $60 |
| 550 – 574 | $1,000 | $100 |
| 500 – 549 | $1,400 | $140 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Oklahoma requires all long term care facilities that hold resident funds to purchase a surety bond prior to enrolling as a Medicaid provider. To paraphrase Oklahoma statute 1-1902, a long term care facility is an institution that provides personal and/or skilled nursing care to residents of the facility.
The term “long term care facility” includes all nursing homes, skilled nursing facilities, residential care homes, assisted living centers, continuum of care homes, and intermediate care facilities for individuals with mental disabilities.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Oklahoma Long Term Care Facilities Enroll as Medicaid Providers?
Long term care facilities in Oklahoma must navigate several steps to secure their provider enrollment. Below are the general guidelines, but applicants should refer to the enrollment statutes for details on the process.
Step 1 – Obtain a Business License
Long term care facilities must obtain a business license, issued by the Oklahoma Department of Health, prior to enrolling as a Medicaid provider. To obtain a business license, long term care facilities must complete the following actions.
*The below steps focus solely on how to obtain nursing and specialized facility licenses
1.a Obtain a Certificate of Need (if applicable) by mailing a completed application to
Oklahoma State Department of Health
Health Facility Systems
123 Robert S. Kerr Ave., Suite 1702
Oklahoma City, OK 73102-6406
1.b Register their business with the Oklahoma Secretary of State
1.c Mail a completed license application to
Oklahoma State Department of Health
Health Facilities Systems
PO Box 268823
Oklahoma City, OK 73126-8823
Long term care facilities must complete the application in its entirety and submit the following items:
Applicants must pay a $10 fee (per bed) when submitting their license application.
License Period – Oklahoma Long Term Care Facility Licenses are valid for 3 years from the date of issuance and must be renewed before the expiration date
Step 2 – Purchase a Surety Bond
Long term care facilities that hold resident funds must purchase and maintain a surety bond prior to enrolling as a Medicaid provider
Step 3 – Enroll as a Provider
Long term care facilities are eligible to enroll as Medicaid providers after obtaining their business license. To enroll as a provider, long term care facilities must create an account with the Health Care Authority’s SoonerCare Provider Portal and submit their application electronically.
Enrollment Period – Medicaid providers must revalidate their enrollment at least once every 5 years
How do Oklahoma Long Term Care Facilities Renew Their Licenses and Provider Enrollments?
To renew their licenses, long term care facilities must mail their completed renewal application, including a $10 fee (per bed), to the following address:
Oklahoma State Department of Health
Health Facilities Systems
PO Box 268823
Oklahoma City, OK 73126-8823
Oklahoma Long Term Care Facility Licenses are valid for 3 years from the date of issuance and must be renewed before the expiration date. The Health Care Authority will contact the facility with instructions on how to revalidate their provider enrollment. Medicaid providers must revalidate their enrollment at least once every 5 years.
What are the Insurance Requirements for Long Term Care Facilities in Oklahoma?
Oklahoma does not require long term care facilities to obtain any form of liability insurance as a prerequisite to obtaining a business license or provider enrollment. Long term care facilities that hold resident funds must purchase and maintain a surety bond prior to enrolling as a Medicaid provider.
How Do Oklahoma Long Term Care Facilities File Their Bond?
Long term care facilities should mail their completed bond form, including the power of attorney, to the following address:
Oklahoma Health Care Authority
4345 N. Lincoln Blvd.
Oklahoma City, OK 73105
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the long term care facility. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond is signed
What Can Oklahoma Long Term Care Facilities Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, long term care facilities in Oklahoma must ensure that they:
- Faithfully account for all resident funds
- Disburse funds as requested by the resident or their representative
What Other Insurance Products Can Agents Offer Long Term Care Facilities in Oklahoma?
Oklahoma does not require long term care facilities to purchase any form of liability insurance as a prerequisite to obtaining a business license or enrolling as a Medicaid provider. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Oklahoma Long Term Care Facility Customers?
Oklahoma conveniently provides a public database to search for active long term care facilities in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.