Texas Star Program Performance Surety Bond

Managed Care Organizations (MCOs) participating in the STAR, STAR+PLUS, CHIP, STAR Health, or Dental Contractors providing Texas Medicaid and CHIP Dental Services to members through dental health plans are required to contract for each program and as part of the contracting requirements they must post a $100,000 TX Star Program Performance Surety Bond.

The term “MCO” includes health maintenance organizations (HMOs), exclusive provider organizations (EPOs), insurers, Dental Contractors, and any other entities licensed or approved by the Texas Department of Insurance.


How much does the TX Star Program Performance Surety Bond need to be?

The amount of the performance bond should total $100,000 for each Program the MCO is contracted for in each Service Area that the MCO has a contract with Health and Human Services Commission (HHSC) to provide services.  For example, if the MCO contracts for the CHIP, STAR, and STAR+PLUS Programs in a Service Area A, and the CHIP and STAR Programs in Service Area B, then the total amount of the performance bond will be $500,000 annually.

The TX Star Program Performance Bond guarantees that should the PRINCIPAL fail to perform its obligations and duties under the Contract, HHSC may make demands upon the SURETY for payment.


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