SENATE BILL No. 510
DIGEST OF INTRODUCED BILL
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
First Regular Session 117th General Assembly (2011)
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SENATE BILL No. 510
A BILL FOR AN ACT to amend the Indiana Code concerning
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;
(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
(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
(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
(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
(8) The surety bond must provide that actions under the
surety bond may be brought by the office or the attorney
(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
(g) The office or its designee may, at any time, require a
transportation provider to demonstrate compliance with this
(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