How to Start an NEMT Business in California: A Several Part “Bambi Knows Best” State-By-State Series

Part 3: Study California’s Regulations and Get Insured

To kickstart your NEMT business under the California sun, mastering state and federal regulations is a must. Get ready to navigate California's unique registration and compliance requirements while sticking to federal guidelines for a smooth launch!

1 | Find out California's NEMT Requirements

‍To ensure compliance with California's NEMT requirements, you must fulfill specific criteria, including passing background checks, meeting driver and vehicle standards and adhering to regulations set forth by the California Department of Health Care Services (DHCS). They oversee Medicaid (Medi-Cal) and can provide all the guidelines and rules you need.

2 | Stay on top of federal NEMT regulations

‍NEMT services must also comply with federal regulations established by the Centers for Medicare & Medicaid Services (CMS). Ensure you are familiar with these federal requirements before launching your NEMT business operations.

3 | Get insured

‍To insurance-proof your NEMT business in California, reach out to specialized insurance providers offering reliable, legally compliant coverage. This shields your company, employees, and patient riders from accidents and unexpected events. While ITR covers some bases, securing multiple types of insurance guarantees complete peace of mind under the sunny skies of California.

4 | Obtain necessary licenses and permits

Check with local city and county offices, as well as the California Department of Financial Protection and Innovation on the necessary licenses for highly-regulated industries such as NEMT.

CaliGold is also a good resource that provides information on permits and licenses required for specific business types in California.

5 | Know your employer responsibilities

If you're considering hiring employees — and it's a good bet you will — thorough research is crucial. After all, who will be driving your extensive fleet? Even Bambi had his forest friends for support. This highlights the importance of complying with employment laws, such as securing workers' compensation insurance, unemployment insurance and fulfilling new hire reporting requirements. The California Employment Development Department is a stellar resource for understanding these regulations. 

By following these steps and leveraging available resources, you can ensure your new California business is set up for success, operating in complete compliance with the state’s regulations.

You're ridin’ the California NEMT business surf and lingo like a pro — keep surfin’ that wave in style! Ready to dive into Part 4 and discover how to secure funding in the Golden State? Click here to continue. Or, check out the table of contents here. to explore more sections in the series. Sunny days ahead!

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