Wisconsin Pharmacy Benefit Manager (PBM) Bond
Wisconsin does not have a standalone PBM license. It regulates pharmacy benefit managers as employee benefit plan administrators, and administrators must file a performance bond with the Office of the Commissioner of Insurance. That framing shapes everything about the Wisconsin bond, including how the amount is set and how it is filed. We handle the administrator route regularly. Surety Bond Authority has been writing surety bonds since 1971. For how PBM bonds work nationally, see our pharmacy benefit manager bond overview.
If you already know you need the Wisconsin bond, call us at 800-333-7800 or request a free quote online.
How Wisconsin Sets the Amount
There is no flat number. Wisconsin uses a two-track formula based on your projected Wisconsin business, and which track you are on depends on whether you handle client funds:
- If you do not handle client funds (information-only administration): 5 percent of projected Wisconsin business, with a minimum of $15,000 and a maximum of $250,000.
- If you collect premiums or pay benefits (handling funds): 10 percent of projected Wisconsin business, with a minimum of $25,000 and a maximum of $500,000.
Most PBMs that touch payment fall into the second track, so the working ceiling in Wisconsin is $500,000 rather than the $1,000,000 you see in the big fixed-amount states. We will help you run the projection so the bond is filed at the right figure.
What the Wisconsin Bond Actually Guarantees
The form is titled the "Employee Benefit Plan Administrator or Pharmacy Benefit Manager Bond," and the obligee is the Wisconsin Commissioner of Insurance. The condition ties directly to the administrator rules: the principal must faithfully perform the responsibilities specified under Chapter 633 of the Wisconsin Statutes and Chapter Ins 8, subchapter II of the Administrative Code, and make full accounting and due payment to the persons entitled to the funds. Two Wisconsin-specific details matter at filing time. First, the surety can terminate only on 60 days' advance written notice to the Commissioner, which is a longer runway than the 30-day notice most states use. Second, Wisconsin requires the original signed and sealed bond, not a copy, so plan for a wet-signature original.
Cost and Underwriting
The bond amount is the coverage the state requires; your premium is a fraction of it. Smaller bonds underwrite lightly, and amounts closer to the $500,000 ceiling get a closer look at your financials, with collateral possible. 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 license.
How to Get Your Wisconsin PBM Bond
- Run the formula. Tell us your projected Wisconsin business and whether you handle funds, and we will land on the amount and the correct track.
- Apply, with financials on the larger amounts.
- We shop and quote, flagging any collateral upfront.
- We issue an original signed and sealed performance bond so you can file it with the Commissioner and complete your license.
The bond sits under Wis. Admin. Code Ins 8.28(4) and is administered by the Wisconsin Office of the Commissioner of Insurance.
Frequently Asked Questions
How much is the Wisconsin PBM bond?
It is set by formula. If you do not handle funds, it is 5 percent of projected Wisconsin business ($15,000 to $250,000). If you handle funds, it is 10 percent ($25,000 to $500,000). Most PBMs fall into the second track.
Why is it called a performance bond?
Wisconsin licenses PBMs as employee benefit plan administrators, and administrators file a performance bond. That is the bond that applies to your PBM in Wisconsin.
What is different about filing in Wisconsin?
Two things: the surety must give 60 days' notice to cancel (longer than most states), and the state requires the original signed and sealed bond, not a copy.
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 Wisconsin PBM Bond Today
Wisconsin's administrator route and its original-bond requirement take a little handling, and we do it every day. Call us at 800-333-7800 or contact us for a free quote.
