Express Scripts now demand a bond from all pharmacy companies to whom they are going to offer their services. This requirement will guarantee Express Scripts that the Pharmacy Company who will sign this bond will carry out all their performance as per the terms and conditions agreed by the concerned parties.
This surety bond for Express Scripts pharmacy may also need to extend for more than the initial 2-years period. Swift Bonds, can offer all the necessary support to provide performance bonds.
What this pharmacy bond is?
As such, this kind of pharmacy bond can be considered as a kind of permit and license surety bond that has been issued for keeping the pharmacy businesses from any kind of mismanaging their drug sales and also their shipments. Besides that, this kind of surety bond will also perform the following:
- It will provide necessary protection to any pharmacies or a pharmaceutical wholesaler with whom any business will be done
- It will create a certain binding legal agreement between the wholesalers of pharmaceutical products and the state and federal agencies that are governing the industry to ensure wholesalers that they will adhere to laws strictly
- It will act as a kind of deterrent to all those wholesalers of pharmaceutical products who may try to dodge any laws and statutes. This bond will hold them accountable for all such illegal activities
- It will ensure all the Medicare beneficiaries will receive all reasonable services and products from certain legitimate suppliers
All those businesses transacting or distributing drugs and/or any other medical equipment to pharmacies, wholesalers, or practitioners should file this surety bond before they become licensed in any state.
For qualifying for this bond, the company has to first prove that they are really capable of performing all the work and can also complete the necessary jobs. Once they are able to accomplish this, the companies will then prove that they are qualified for the bond.
Also, the bond producer will like to know whether the company has the required assets for paying any claim if anything ever goes wrong. A bonding company is going to write a necessary bond if these 2 criteria are fully met.
How much will this Express Scripts performance bond cost?
As far as the total cost is concerned, the pharmacy signing this performance surety bond with Express Scripts will be a certain percentage of their total bond amount. This percentage can vary from 1% to 10% and will be based on their personal credit history as well as their financial background.
Requirement for getting the bond
For obtaining this surety bond, which is going to be acceptable to Express Scripts, the concerned pharmacies have to make sure that the surety they are going to apply with will have the best rating on an AM, which should be a minimum of A-VIII.
In addition to that, the pharmacies who will post this bond have to hold a bond that must be an active bond, which should be for a minimum duration of 2 years.
Author: Siddhi Chothani
