Georgia Pharmacy Benefit Manager (PBM) Bond

Georgia's PBM bond is one of the more accessible in the country. The minimum is $100,000, a fraction of the $1,000,000 that states like West Virginia and Kentucky require, which makes it a comparatively light lift to put in place. It is filed with the Georgia Office of Commissioner of Insurance and Safety Fire as part of your PBM license. We can get it done quickly. Surety Bond Authority has been writing surety bonds since 1971. For the broader picture, see our pharmacy benefit manager bond overview.

 

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

 

How Much Is the Bond?

The Georgia bond is set at 10 percent of the funds the PBM handles or manages annually, but it never drops below a $100,000 minimum. For most PBMs, $100,000 is the operative number. Only companies handling very large volumes of funds move above the floor. That $100,000 baseline is what makes Georgia one of the easier PBM bonds to obtain.

 

What the Georgia Bond Actually Guarantees

Georgia's form is labeled a "Fidelity Bond Form," and the obligee is the State of Georgia through the Commissioner of Insurance. The condition has a distinct fidelity flavor: the PBM must maintain faithful accounting and application of all money coming into its possession in connection with its PBM activities, and the bond inures to the benefit of any person damaged by any fraudulent act or conduct of the PBM. So it does two jobs at once. It backs your honest handling of funds, and it gives anyone harmed by fraud or misconduct a way to recover. The bond can be canceled only on 30 days' written advance notice by certified or registered mail to the Commissioner, so it is meant to stay continuously in force while you are licensed. The requirement is part of O.C.G.A. Chapter 33-64, the state's PBM licensing law.

 

Cost and Underwriting

The bond amount is the coverage the state requires; your premium is a fraction of it. At the $100,000 level, underwriting is more straightforward than the $1,000,000 bonds other states demand, though the surety will still review your company profile and financials. Call us at 800-333-7800 and we will shop the bond for the best available terms. Premiums are paid annually, and the bond runs with your license.

 

How to Get Your Georgia PBM Bond

• Call us or request a quote. For most PBMs the amount is the $100,000 minimum.
• Apply. We collect a short application and your company details.
• We shop and quote across our carriers.
• We issue on the state's form so you can file it with your PBM license.

The bond requirement is in O.C.G.A. 33-64-3, and licensing is handled by the Georgia Office of Commissioner of Insurance and Safety Fire.

 

Frequently Asked Questions

How much is the Georgia PBM bond?

A minimum of $100,000. The amount is figured at 10 percent of the funds the PBM handles annually but never falls below the $100,000 floor, which is the number for most companies.

What does the bond cover?

Faithful accounting of the money the PBM handles, and it inures to the benefit of anyone damaged by a fraudulent act or conduct of the PBM.

Can the bond be canceled?

Only on 30 days' written advance notice by certified or registered mail to the Commissioner of Insurance.

Why is Georgia's bond easier to get than other states'?

At a $100,000 minimum, it underwrites more simply than the $1,000,000 financial-guarantee bonds required in several other states. Call 800-333-7800 for a quote.

 

Get Your Georgia PBM Bond Today

The Georgia PBM bond is one of the quicker ones to put in place, and we can move fast. Call us at 800-333-7800 or contact us for a free quote.