Connecticut Pharmacy Benefit Manager (PBM) Bond

Connecticut sizes its PBM bond to your Connecticut business, and it points the protection in a specific direction: this bond is written for the benefit of the pharmacies in your network. It is filed as part of your PBM certificate of registration with the Connecticut Insurance Department, and the amount is calculated from your claims volume. We can work out the figure and get you bonded. Surety Bond Authority has been writing surety bonds since 1971. For how PBM bonds work across the country, see our pharmacy benefit manager bond overview.

 

If you already know you need the Connecticut bond, call us at 800-333-7800 or request a free quote online.

 

How Connecticut Calculates the Amount

Connecticut sets the bond at roughly 10 percent of one month of your Connecticut claims, using a 12-month average, with a floor of $25,000 and a ceiling of $1,000,000. In practice, a PBM with light Connecticut volume lands near the $25,000 minimum, and a high-volume PBM hits the $1,000,000 cap. Because the number comes straight from your claims data, the state uses a worksheet to derive it, and we will help you run it before you file so the bond is issued at the correct amount.

 

What the Connecticut Bond Actually Guarantees

The form is titled the "Pharmacy Benefits Manager (PBM) Bond," and this is where Connecticut differs from most states. Rather than running to the state as obligee, the bond is written for the member pharmacies and providers of the PBM, and its stated purpose is the exclusive use of paying any outstanding amounts owed in the event of the PBM's insolvency or nonpayment. In other words, it is a direct backstop for the pharmacies you are supposed to pay. One practical consequence: the form does not carry a fixed advance-notice cancellation period. Instead, the obligations under the bond cease when your PBM registration ends, except for liability that has already accrued. The requirement sits in Connecticut General Statutes 38a-479bbb, subsection (c).

 

Cost and Underwriting

The bond amount is the coverage the state requires; your premium is a fraction of it. Smaller bonds near the $25,000 floor underwrite easily. As the amount climbs toward the $1,000,000 cap, the surety will review your financials and may look for collateral. Call us at 800-333-7800 and we will shop the bond across our carriers for the best terms. Premiums are paid annually, and the bond runs with your registration.

 

How to Get Your Connecticut PBM Bond

• Run the worksheet. Share your Connecticut claims volume and we will calculate the required amount within the $25,000 to $1,000,000 range.
• Apply, with financials on the larger amounts.
• We shop and quote, flagging any collateral upfront.
• We issue on the state's form so you can file it with your PBM registration.

The requirement is set in Conn. Gen. Stat. 38a-479bbb and administered by the Connecticut Insurance Department.

 

Frequently Asked Questions

How is the Connecticut PBM bond amount calculated?

About 10 percent of one month of your Connecticut claims on a 12-month average, with a $25,000 minimum and a $1,000,000 maximum. The state uses a worksheet to derive it.

Who does the Connecticut bond protect?

Your network pharmacies and providers. It is written for their benefit, to pay outstanding amounts owed if the PBM becomes insolvent or fails to pay.

Is there a cancellation notice period?

The form does not set a fixed advance-notice period. The bond obligations end when your PBM registration ends, except for liability already accrued.

What will it cost me?

A fraction of the required amount, based on the bond size and your financials. Call 800-333-7800 for a quote.

 

Get Your Connecticut PBM Bond Today

Whether your number lands at the $25,000 floor or the $1,000,000 cap, we will calculate it and get you bonded. Call us at 800-333-7800 or contact us for a free quote.