A Texas discount health care program operator surety bond is required by all operators that engage in the business of discount health services as defined under Texas Insurance Code §562.103. Per the TDI, "Discount health care programs are not insurance. Discount programs generally sell 'membership' cards that provide those members with discounts for health care services physicians, dentists and medical providers that participate in the operator's plan. The intent of the program is to provide a value to consumers who do not have health insurance by helping to reduce the out-of pocket cost of health care."
Pursuant to Texas Insurance Code §562.103(f), A program operator shall maintain a surety bond, payable to the Department for the use and benefit of members in a manner prescribed by the department, in the principal amount of fifty thousand dollars ($50,000), except that a program operator that is an insurer that holds a certificate of authority under Title 6. The Texas discount health care program operator surety bond guarantees that the operator will pay to the Texas Department of Insurance all funds necessary for the payment of eligible member claims upon determination by the TDI that funds are necessary for the payment of those claims following compliance with all applicable provisions of the Texas Insurance Code and applicable rules of the Texas Department of Insurance; or upon final judgment against the licensee arising from a claim.
A discount health care program operator must pay the TDI an initial registration fee of $1,000 accompanying the registration packet. The application must also inclusde a FIN526 Discount Health Care Program Operator Biographical Certificate from each of the individuals responsible for conducting the discount health care program affairs. Submissions may be made to:
Texas Department of Insurance
Agent and Adjuster Licensing, Mail Code 9999
P.O. Box 149104 Austin, TX 78714-9104
Texas surety bond leader, Surety One, Inc. provides all of the surety bonds required by the medical billing and program service provider sector. More questions? Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat with one of our underwriters about a Texas discount health care program operator surety bond.
Do you also act as an intermediary in the sale or delivery of durable medical equipment? You will need a DMEPOS bond. Learn more about this bond here.
Do you have a working agreement with Express Scripts? You will need an express scripts performance bond. Learn more about this bond here.
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