Steps your agency must take to secure an extension
Although HCFA will soon publish changes to its surety bond requirements for home health, agencies must still notify their intermediaries by Feb. 27 if they haven't been able to purchase a bond. The National Association for Home Care in Washington recommends that agencies take the following steps by the deadline in order to remain in compliance:
1. Agencies that have already secured a bond.
Although an extension is likely to be granted, if your agency has already secured a bond, it should attempt to submit proof by Feb. 27. According to NAHC, such agencies should be able to meet any new standards that are published, especially since the new standards are expected to be less stringent than those currently in place. Even so, contact your surety company to find out if the insurer plans to make adjustments - including lowering prices - in response to the new regulations.
2. Agencies accepted by bond companies who have not yet signed.
NAHC encourages these agencies to "seek clarity from their insurer about their intent to honor the new standards in the new pending regulations before signing." Agencies that have won approval for a bond but haven't yet signed an agreement are in an excellent position to negotiate lower rates, NAHC says.
3. Agencies that have been rejected or cannot afford bonds.
If your agency has been rejected outright for a surety bond, obtain documentation from the company or broker - preferably on its own letterhead - indicating that they were unable to provide you with a bond "under the restrictive standards in the current regulations," NAHC says.
Agencies unable to afford a bond because of the high cost of collateral should also seek to obtain documentation from the bonding company indicating a rejection. NAHC encourages all agencies to document telephone rejections and correspondence from your agency to the company describing your difficulty in meeting the bonding company's terms.
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