[Code of Federal Regulations]

[Title 42, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR489.64]



[Page 956-957]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 489_PROVIDER AGREEMENTS AND SUPPLIER APPROVAL--Table of Contents

 

               Subpart F_Surety Bond Requirements for HHAs

 

Sec. 489.64  Authorized Surety and exclusion of surety companies.



    (a) An HHA may obtain a surety bond required under Sec. 489.61 only 

from an authorized Surety.

    (b) An authorized Surety is a surety company that--

    (1) Has been issued a Certificate of Authority by the U.S. 

Department of the Treasury in accordance with 31 U.S.C. 9304 to 9308 and 

31 CFR parts 223, 224, and 225 as an acceptable surety on Federal bonds 

and the Certificate has neither expired nor been revoked; and

    (2) Has not been determined by CMS to be an unauthorized Surety for 

the purpose of an HHA obtaining a surety bond under this section.

    (c) CMS determines that a surety company is an unauthorized Surety 

under this section--

    (1) If, upon request by CMS, the surety company fails to furnish 

timely confirmation of the issuance of, and the validity and accuracy of 

information appearing on, a surety bond an HHA presents to CMS that 

shows the surety company as Surety on the bond;

    (2) If, upon presentation by CMS to the surety company of a request 

for payment on a surety bond and of sufficient evidence to establish the 

surety company's liability on the bond, the surety company fails to 

timely pay CMS in full the amount requested, up to the face amount of 

the bond; or

    (3) For other good cause.

    (d) Any determination CMS makes under paragraph (c) of this section 

is effective immediately when notice of the determination is published 

in the Federal Register and remains in effect until a notice of 

reinstatement is published in the Federal Register.

    (e) Any determination CMS makes under paragraph (c) of this section 

does not affect the Surety's liability under any surety bond issued by a 

surety company to an HHA before notice of



[[Page 957]]



such determination is published in accordance with paragraph (d) of this 

section.

    (f) A determination by CMS that a surety company is an unauthorized 

Surety under this section is not a debarment, suspension, or exclusion 

for the purposes of Executive Order No. 12549 (3 CFR, 1986 comp., p. 

189).