Pharmacy Benefit Manager Bond Overview
A Pharmacy Benefit Manager Bond (PBM Surety Bond) is a state‑required financial guarantee for PBMs operating in regulated states. It ensures PBMs comply with state laws, handle funds properly, and meet all obligations to pharmacies, insurers, and consumers.
The bond protects against:
- Misuse or mismanagement of funds
- Failure to reimburse pharmacies
- Violations of state PBM regulations
- Fraud, misrepresentation, or non‑performance
PBM bonds are not federal; each state sets its own requirements.
States That Require a PBM Surety Bond
Only certain states mandate a Pharmacy Benefit Manager Bond as part of PBM licensing or registration. Current states with active PBM bond requirements include:
- Georgia
- Kentucky
- Nevada
- North Dakota
- Oklahoma
- South Carolina
- Tennessee
- West Virginia
PBMs operating in any of these states must post a bond to obtain or maintain licensure.
Pharmacy Benefit Manager Bond Amounts
Bond amounts vary by state and may depend on:
- PBM size
- Claims volume
- State‑specific statutes
- Financial responsibility requirements
Some states set a fixed statutory amount, while others allow regulators to adjust based on risk.
PBM Surety Bond Cost
Premiums are a small percentage of the required bond amount. Pricing depends on:
- Bond amount
- Credit profile
- Business financials
- Claims or regulatory history
Most PBMs qualify for competitive annual rates.
Who Needs a Pharmacy Benefit Manager Bond?
Any PBM operating in a state that requires PBM licensing may need this bond, including:
- Third‑party PBMs
- Insurer‑affiliated PBMs
- Pharmacy network administrators
- Claims processors
- Benefit management service providers
If a PBM manages reimbursements, negotiates drug pricing, or oversees pharmacy networks in a regulated state, a bond is typically required.
How the process works in three easy steps
1
Complete the App
Provide PBM licensing details. Confirm the required bond amount for your state
Fast digital delivery — your PBM surety bond is ready for immediate filing with your state insurance or regulatory department.
2
Secure the low rates
We secure the lowest rate available
3
Receive your bond
File the bond with the state licensing authority
Why Choose Us?
Lowest rates from A‑rated sureties
Fast approvals
Digital delivery
Dedicated PBM bond specialists
100% state compliance guarantee
Top questions answered
Our most common questions answered efficiently.
They are state‑regulated. Each state decides whether PBMs must be bonded.
No. Only a limited number of states currently mandate them.
Most bonds are approved and issued quickly.
No. Each state requiring a bond must have its own bond filed.
No. It protects pharmacies, insurers, and consumers from financial harm caused by the PBM.
