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Elizabeth M. Whitehorn, Director

Provider Notice issued 03/03/15

Supplies Included in Equipment Rental Reimbursement

To:​ Durable Medical Equipment and Supplies Providers; and Hospitals ​
Date:​ ​March 3, 2015
​Re: Supplies Included in Equipment Rental Reimbursement​

The purpose of this notice is to remind providers that, per the Handbook for Providers of Medical Equipment and Supplies, Topic M-210.6, Equipment Rental Limitations, all accessories and supplies needed to use equipment during a rental period are considered to be included in the rental reimbursement and cannot be billed separately.  When cumulative rental costs meet the department’s maximum allowable purchase price, the department considers the equipment paid for in full and the property of the patient.  

The department is currently reviewing paid claims for supplies billed during equipment rental periods, and identifying payments for recoupment. HFS will initiate recoupment for payments made with dates of service beginning July 1, 2012 through December 31, 2014.

The department’s processing system is being modified to prohibit reimbursement of associated supplies during equipment rental periods. Until the system is changed, the department will continue to monitor provider billing during rental periods. Any inappropriate supplies payments will be recouped. For updates on the procedure codes adjustments and the adjustment processing, please refer to the Claims Processing System Issues page on the website. 

Questions regarding this notice should be directed to the Bureau of Professional and Ancillary Services at 1-877-782-5565, option 3, option 2.

James M. Parker, Acting Administrator

Division of Medical Programs