Nursing Home Patient Trust Funds Bond - Statewide in Ohio

Brief Summary

A home that holds resident money needs this bond because it holds that money, and the amount should track what it holds. Size it to your actual trust balances, put the right state official on it, and revisit it when census or balances climb. That keeps you in line with both Ohio law and the federal participation rule.

Ohio Revised Code 3721.15(D) requires every home that manages residents' financial affairs to purchase a surety bond, or provide other assurance satisfactory to the director of health, to assure the security of all residents' funds the home manages. For a home in the Medicaid program the assurance must satisfy the Medicaid director. Certified facilities also fall under the matching federal rule at 42 CFR 483.10(f)(10)(vi). Neither rule sets a fixed dollar amount.

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How to Apply for a Nursing Home Patient Trust Funds Bond:

• Total the resident funds the home manages, petty cash included.
• Legal name of the licensed operator and the facility address.
• Identify the obligee: the director of health, or the Medicaid director for a Medicaid-participating home.
• Confirm the bond amount and any required form with that obligee before the bond is issued.
• Keep the written, independently witnessed authorization for each resident whose funds the home manages.
• Increase the bond when trust balances grow.

Detailed Information About the Ohio Nursing Home Patient Trust Funds Bond:

The amount follows the money

Neither ORC 3721.15 nor the federal rule names a dollar figure. Both tie the bond to the security of all resident funds the facility holds. A home keeping a few small petty cash balances and a home managing large balances for many residents are in very different positions, so the bond should be set against actual trust balances. Confirm the amount and any required form with the director of health, or the Medicaid director for a Medicaid home, before the bond is issued.

Who is covered

The requirement applies to a home that manages residents' financial affairs. It can do that only with written authorization from the resident, or from a sponsor holding power of attorney, witnessed by someone with no connection to the home or its administrator. For these sections, "home" covers nursing homes, residential care facilities, homes for the aging and veterans' homes under ORC 3721.01, plus any skilled nursing facility or nursing facility and county or district homes.

Section 3721.15(D) opens with an exception for ORC 3.061, which lets a political subdivision use an employee dishonesty and faithful performance of duty policy instead of a bond, as long as coverage is at least equal to the maximum bond otherwise required.

Handling the funds

Ohio requires resident funds over $1,000 to sit in an interest-bearing account separate from the home's operating accounts, with interest credited to the resident. The home must tell a resident when their balance plus other nonexempt resources comes within $200 of the Medicaid maximum. The federal rule uses lower interest-bearing thresholds for certified facilities, $100 generally and $50 for Medicaid residents, and requires quarterly statements. When a resident is transferred, discharged or dies, the account is closed and the balance goes back to the resident or sponsor, or is handled under ORC 5162.22 after a death.

Eligibility and Requirements for a Ohio Nursing Home Patient Trust Funds Bond:

• Surety bond or other assurance satisfactory to the director of health or Medicaid director under ORC 3721.15(D).
• Coverage that assures the security of all residents' funds managed by the home.
• Resident funds over $1,000 kept in a separate interest-bearing account.
• Federal surety bond rule at 42 CFR 483.10(f)(10)(vi) for certified facilities.
• Political subdivisions may use a qualifying employee dishonesty and faithful performance policy under ORC 3.061.

Ohio Nursing Home Patient Trust Funds Bond FAQs:

Official and Additional Resources for the Ohio Nursing Home Patient Trust Funds Bond: