Surety Bond Encyclopedia

Miscellaneous Indemnity ($500,000) Bond - Express Scripts in All States

Brief Summary

This $500,000 miscellaneous indemnity bond names Express Scripts as obligee. It is a written guarantee, backed by a surety company, that the pharmacy or provider posting it will meet the obligation Express Scripts has asked it to secure. Get the exact wording from Express Scripts first, and the bond can be issued to match it.

Express Scripts, the pharmacy benefit management business of Cigna's Evernorth, may ask a pharmacy or provider for a $500,000 miscellaneous indemnity bond. Express Scripts is the obligee, the pharmacy or provider is the principal, and a surety company guarantees the principal's obligation up to $500,000. Express Scripts sets the bond wording, so confirm it with them before the bond is issued.

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How to Apply for a Miscellaneous Indemnity ($500,000) Bond:

Get the required bond wording and the obligee name from Express Scripts in writing.
Confirm the $500,000 amount and the bond term Express Scripts expects.
Use the pharmacy or provider's legal name and address exactly as they appear in the Express Scripts agreement.
Complete the surety application and provide the financial information the underwriter asks for.
Review and accept the quoted premium.
Have the executed bond delivered to Express Scripts the way it directs.

Detailed Information About the All States Miscellaneous Indemnity ($500,000) Bond:

Start with the wording

This bond is requested by Express Scripts, so Express Scripts sets the terms. For this listing the obligee is Express Scripts and the bond amount is $500,000. Before anything is issued, get from Express Scripts the exact bond language it wants, how it wants its name shown as obligee, and the term it expects. A surety can then issue the bond on that wording.

What the bond guarantees

The Surety and Fidelity Association of America defines a surety bond as a written agreement to guarantee performance or payment of another company's obligation under a separate contract, or compliance with a law or regulation. Three parties are involved. Here the pharmacy or provider is the principal, Express Scripts is the obligee the bond protects, and the surety company stands behind the principal's obligation. If the principal fails to meet the obligation the bond secures, Express Scripts can make a claim against the bond up to $500,000.

Who Express Scripts is

Express Scripts is the pharmacy benefit management business of Evernorth, the health services arm of Cigna. It manages pharmacy benefits and a national retail pharmacy network, and pharmacies join that network through its contracting and credentialing teams.

Where to ask

Cigna's pharmacy page for health care providers lists the Express Scripts contacts. Independent pharmacy contracting questions go to ProviderContracting@express-scripts.com. Credentialing status and missing documentation go to NetworkCompliance@express-scripts.com. Network applications and re-credentialing run through the Express Scripts Provider Portal. Ask the team that requested the bond to send the required wording in writing.

Eligibility and Requirements for a All States Miscellaneous Indemnity ($500,000) Bond:

Express Scripts named as obligee.
Bond amount of $500,000.
The pharmacy or provider named as principal, matching the contracting entity.
A surety company that guarantees the principal's obligation to Express Scripts.
Bond wording that matches what Express Scripts provides.

All States Miscellaneous Indemnity ($500,000) Bond FAQs:

Who is the obligee on this bond?

Express Scripts, the pharmacy benefit management business of Evernorth, part of Cigna. The bond protects Express Scripts if the pharmacy or provider fails to meet the obligation it secures.

What does a miscellaneous indemnity bond guarantee?

It guarantees the principal's performance or payment of an obligation owed to the obligee. The SFAA describes a surety bond as a written agreement that guarantees another company's obligation under a separate contract. The exact obligation here is set by the wording Express Scripts provides.

Where do I get the required bond wording?

From Express Scripts. Start with the team that asked for the bond. For independent pharmacy contracting, Cigna's provider page lists ProviderContracting@express-scripts.com. For credentialing documentation, it lists NetworkCompliance@express-scripts.com.

Can the bond be written on a standard surety form instead?

Use the form or wording Express Scripts gives you. A bond on different wording may not be accepted, so send the obligee's language to the surety before the bond is issued.