Introduced Version




Citations Affected: IC 12-15-11-2.5.

Synopsis: Medicaid transportation providers. Requires a transportation provider that applies to enroll in the Medicaid program to file with the office of Medicaid policy and planning a surety bond to be used for specified purposes.

Effective: July 1, 2011.


    January 18, 2011, read first time and referred to Committee on Health and Provider Services.


First Regular Session 117th General Assembly (2011)

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    A BILL FOR AN ACT to amend the Indiana Code concerning human services.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 12-15-11-2.5; (11)IN0510.1.1. -->     SECTION 1. IC 12-15-11-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.5. (a) As used in this section, "transportation provider" means a person:
        (1) that is a common carrier, including a taxi;
        (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; and
        (3) that is not a nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
    (b) 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.
    (c) The secretary may waive the surety bond requirement of subsection (b) for a transportation provider if, in the secretary's sole discretion, the secretary determines that the transportation provider renders or will render transportation services in an underserved area, as classified by applicable federal or state designations.
    (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 (b).
        (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 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.
        (7) 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.
        (8) 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.