Oklahoma Pharmacy Benefits Managers Bond Updated Requirements

As discussed in Goldleaf Surety’s blog post dated August 9, 2017, effective August 31, 2017, the Oklahoma Insurance Department’s statutory dollar amount requirement for the Pharmacy Benefit Manager’s (PBM) Bond had been amended to $1,000,000 per occurrence and $5,000,000 annual aggregate.

Due to a substantial number of questions and comments from both PBM’s and surety companies regarding the bond requirement set forth in Oklahoma Administrative Code Sec. O.A.C. 365:25-29-6, the Commissioner has determined that the amount of the surety bond as provided in section 365:25-29-6(c) is not readily available in the marketplace and has again amended the surety bond requirement.  The bond requirement has been amended as follows:

“Absent a finding otherwise, a bond with a minimum penal sum of limits pursuant to the following table of One Million Dollars \($1,000,000.00) per occurrence and Five Million Dollars ($5,000,000.00), annual aggregate, shall be deemed to be sufficient:

                        Annual Oklahoma Covered Lives[1]                     Minimum Penal Sum

0-5,000                                                                       $50,000

5,001-10,000                                                              $100,000

10,001 – 25,000                                                          $250,000

25,001 – 50,000                                                         $500,000

50,001 -100,000                                                         $750,000

100,001 – Up                                                              $1,000,000

[1] The number of total covered individuals or lives served under all of the PBM’s contracts or agreements in Oklahoma.”

Goldleaf Surety Services works with several surety companies who are excellent markets for the Pharmacy Benefit Manager’s Bond. If you would like more information on the PBM Bond or need assistance placing this bond for your client, Goldleaf Surety Services’ knowledgeable and experienced staff is available to assist you.