Medicare Blog

how to become a medicare approved equipment supplier

by Colleen Nienow Published 2 years ago Updated 1 year ago
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  • Step 1: Obtain a DMEPOS accreditation for a CMS-approved company.
  • Step 2: Make sure to have an NPI for each practice location.
  • Step 3: Complete the PECOS online Medicare enrollment system.
  • Step 4: Pay the Medicare application fee (for 2022, the cost is $631).
  • Step 5: Work with the National Supplier Clearinghouse MAC for any additional information you might need to provide.

3 Steps to Becoming DME Supplier for Medicare
  1. Acquire a National Providers Identification (NPI) Number.
  2. Complete Your Medicare Enrollment Application.
  3. Work with Your Medicare Administrative Contractor (MAC)
  4. Complete the DMEPOS Accreditation Process.
  5. You will Need an NPI for Each Location.
Apr 16, 2021

Full Answer

How do I become a Medicare supplier?

The most important step to becoming a supplier is to obtain DME accreditation. To do that, you have to comply with the supplier standards set for the Medicare program, as well as with the defined quality standards.

Should I rent or buy my DME equipment?

You may be able to choose whether to rent or buy the equipment. Medicare will only cover your DME if your doctors and DME suppliers are enrolled in Medicare. Doctors and suppliers have to meet strict standards to enroll and stay enrolled in Medicare. If your doctors or suppliers aren’t enrolled, Medicare won’t pay the claims submitted by them.

How do I become an accredited DME supplier?

In order to become an accredited DME supplier, the CMS requires you to first meet a set 42 Code of Federal Regulations (CFR) of supplier standards. Once you’ve satisfied the set of supplier standards, you can obtain your Medicare billing privileges through the National Supplier Clearinghouse (NSC).

Are your doctors and DME suppliers enrolled in Medicare?

Doctors and suppliers have to meet strict standards to enroll and stay enrolled in Medicare. If your doctors or suppliers aren’t enrolled, Medicare won’t pay the claims submitted by them. Make sure your doctors and DME suppliers are enrolled in Medicare.

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How do I get a product approved by Medicare?

Go to an in-person doctor visit, where your doctor will write an order for the DME. Take the order to a Medicare-approved DME supplier. Depending on the product, ask the supplier if they will deliver it to your home. Find out if Medicare requires prior authorization for your DME.

What is a supplier under Medicare?

Supplier is defined in 42 CFR 400.202 and means a physician or other practitioner, or an entity other than a provider that furnishes health care services under Medicare.

How do I set up a DME?

Begin setting up your DME business by decorating your store location or securing a website domain name and creating your website. Apply for an employer identification number with the IRS and apply for a merchant account with a credit card processing company if you intend to accept credit cards as a form of payment.

What is a Dmepos supplier?

DMEPOS supplier means an entity or individual, including a physician or a Part A provider, which sells or rents Part B covered items to Medicare beneficiaries and which meets the standards in paragraphs (c) and (d) of this section.

What is DME accreditation?

Durable Medical Equipment accreditation is available to DME suppliers that provide sleep-related DME to patients. This includes both free-standing suppliers and sleep facilities that provide DME equipment to their patients. Complete your DME application now or contact us for more information.

Is Amazon an approved Medicare supplier?

En español | Already a household name in almost everything from books to electronics to household items, Amazon is now a major health care player with its new digital pharmacy that offers free home delivery and other perks to some customers with Medicare Part D, Medicare Advantage plans and most major commercial health ...

What is a provider supplier?

• Accredited provider/supplier -- means a supplier that has been accredited by the Centers for Medicare & Medicaid Services (CMS)-designed accreditation organization.

How profitable is medical supply business?

Net profits average from 8 to 12 percent, while the more efficient HMEs (i.e. paperless) average 15 percent or higher. Revenue Mix. The average revenue mix of a profitable retail HME is from 30 to 45 percent Medicare/Medicaid, 25 to 50 percent cash and 20 to 35 percent private pay/third-party insurance.

What is a HMDR Exemptee license?

Home Medical Device Retailer (HMDR) Exemptee License In-State HMDR facilities supply prescription medical devices or durable medical equipment for use in the home These devices/equipment are used to treat acute or chronic illnesses or injuries.

What is HMDR license?

Home Medical Device Retailer (HMDR) License, issued by the California Department of Public Health' Food and Drug Branch, if your business includes medical devices and equipment for use in the home to treat illness or injuries.

Can you dropship medical supplies?

You can consider dropshipping items like feeding tubes or exam gloves to medical professionals. Besides, you can also sell home health supplies, such as medical beds, canes, or home diagnostic kits. As you can see, the medical supplies niche is so widespread. It has a consistent, growing demand in the market.

What is DME and POS?

DMEPOS = Durable Medical Equipment, Prosthetics, Orthotics and Supplies.

What is Medicare Dmerc?

DMERCs were the Durable Medical Equipment Regional Carriers. The name change occurred in 2007. Durable Medical Equipment Medicare Administrative Contractors is the current name of the Durable Medical Equipment Regional Carriers. Prior to the DME MAC label, they were also called Medicare A/B contractors.

How much does Achc accreditation cost?

ACHC - When you enroll a $1,500.00 not refundable deposit is required, $300.00 of which represents ACHC's administrative fee. You will then be sent a contract and 30 days after a payment of $6,900 is due, representing the remainder of your contract.

What is a surety bond for Medicare?

These bonds help protect against billing fraud and abuse. Typically, Medicare surety bonds renew annually and stay in place as long as you keep your license. The annual premium is often only 0.5% of the bond amount ($250) but may be higher in some circumstances.

What are non accredited products?

Non-accredited products are products provided by a DMEPOS supplier that do not require the DMEPOS supplier to obtain accreditation from a CMS approved agency in order for the DMEPOS supplier to bill Medicare for that product.

How to become a supplier for Medicare?

The most important step to becoming a supplier is to obtain DME accreditation . To do that, you have to comply with the supplier standards set for the Medicare program, as well as with the defined quality standards. You also need to provide a $50,000 DMEPOS surety bond as a part of the enrollment after receiving your accreditation.

How long does it take to get Medicare accreditation?

The accreditation can take up to nine months from the time of your application. Once you have obtained it, you have to undergo the Medicare enrollment with the CMS. Institutional providers have to use CMS-855A Form, while DMEPOS suppliers have to complete CMS-855S Form.

How much surety bond do I need for CMS?

You have to provide a $50,000 surety bond to the CMS. This amount is necessary for each NPI you have and want to use. Thus, you may need a larger bond amount if you have numerous practice locations as an organizational supplier. In order to get bonded, you have to pay a bond premium, which is a fraction of the required amount.

What is DMEPOS in Medicare?

Medical practitioners and medical service providing organizations that want to be able to bill the Medicare system for supplying Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) need to undergo a rigorous process.

Do dentists have to be accredited to use DMEPOS?

While there are exemptions, it is applicable to medical practitioners who want to act as suppliers of: Since the beginning of 2019, dentists providing DMEPOS to patients are also required to undergo an accreditation process and meet relevant requirements.

Do I need a NPI number for DME?

While this is not a part of the accreditation itself, getting a National Provider Identifier (NPI) number is necessary for meeting the DME license requirements. Existing providers typically have the number already, as it is required by the CMS and commercial healthcare insurers.

How to get a DME license?

1. Acquire a National Providers Identification (NPI) Number. If you don’t have one already, you won’t meet the DME license requirements. NPI’s are issued through the National Plan & Provider Enumeration System. You can apply on their website here. 2. Complete Your Medicare Enrollment Application.

Can you become a DME without a license?

Following the proper guidelines to become a DME or DMEPOS supplier for Medicare is essential for your success. Any company that provides DME without a license could face civil and criminal penalties. Contact CMS with any questions or concerns you may have or visit their website for information about the DME supplier process here.

What is DMEPOS in Medicare?

Suppliers who receive Medicare reimbursement for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) are required to: If your business doesn’t dispense or furnish DMEPOS, you should use the Medicare Enrollment Guide for Providers & Suppliers.

How long does it take to change your Medicare billing information?

It’s important to keep your enrollment information up to date. To avoid having your Medicare billing privileges revoked, be sure to report any change within 30 days. Changes include, but are not limited to: a change in ownership. an adverse legal action. a change in practice location.

What to do if your business doesn't dispense DMEPOS?

If your business doesn’t dispense or furnish DMEPOS, you should use the Medicare Enrollment Guide for Providers & Suppliers. If you’re enrolling a hospital, critical care facility, skilled nursing facility, home health agency, hospice, or other similar institution, you should refer to the Medicare Enrollment Guide for Institutional Providers.

How to become a DME supplier for Medicare?

Obtaining an approval during the accreditation process is the key answer to the question on becoming a DME supplier for Medicare. To be approved, you first have to select from one of the approved accreditation companies and get acquainted with their rules and regulations.

What is a DME supplier?

Are primarily used to serve a medical purpose. Are ordered or prescribed by a physician. Are reusable. Can be used repeatedly. Are able to be used inside a home. To help you learn how to become a DME supplier for Medicare, we’ve prepared this step-by-step guide below to help you learn the basics.

What is DME in medical?

0. 3710. Durable Medical Equipment (DME) is any equipment that provides therapeutic benefits to those in need because of certain illnesses and/or medical conditions. Those providing Durable Medical Equipment or Home Medical Equipment depends on the type of equipment as well as the jurisdiction.

Does Medicare cover blood sugar monitors?

Medicare Part B (Medical Insurance) will cover most of the medically required durable medical equipment (DME)to use in your home if prescribed by your doctor. Medicare DME coverage includes, but isn’t limited to: Blood sugar test strips. Blood sugar monitors. Canes.

Who are DME providers?

DME providers include home health agencies, DME companies, practitioners, and physicians.

Does Medicare cover wheelchairs?

Wheelchairs & scooters. Medicare will also cover certain prescriptions and supplies that you use with your DME, even if they can only be used once. For example, Medicare covers medications that are used with nebulizers as well as test trips used with diabetes self-testing equipment.

Do you have to be enrolled in Medicare to receive DME?

In order to receive DME coverage by Medicare, your doctor and suppliers must also be enrolled. Before you inquire about DME, it’s important to ask your suppliers if they’re enrolled in Medicare. If they are, they must accept assignment (i.e. the cost of a hospital bed).

What is a DME supplier?

A DME supplier is any business that sells or rents certain types of medical equipment intended for the management of chronic conditions. These types of medical equipment include, but are not limited to: Prosthetics and orthotics. Blood sugar meters and test strips. Dialysis supplies.

Why is DME important?

What’s more, the DME market is essential to serving the medical needs of many different people, including seniors and people with disabilities, which makes it a key component of the standard of care for medical practices that serve these populations. The ability to bill Medicare is a vitally important component of most DME suppliers’ businesses ...

What percentage of Medicare payment does a supplier pay for assignment?

If your supplier accepts Assignment you pay 20% of the Medicare-approved amount, and the Part B Deductible applies. Medicare pays for different kinds of DME in different ways. Depending on the type of equipment:

What is Medicare approved amount?

Medicare-Approved Amount. In Original Medicare, this is the amount a doctor or supplier that accepts assignment can be paid. It may be less than the actual amount a doctor or supplier charges. Medicare pays part of this amount and you’re responsible for the difference. , and the Part B.

What is Medicare assignment?

assignment. An agreement by your doctor, provider, or supplier to be paid directly by Medicare, to accept the payment amount Medicare approves for the service, and not to bill you for any more than the Medicare deductible and coinsurance. you pay 20% of the. Medicare-Approved Amount.

Does Medicare cover DME equipment?

You may be able to choose whether to rent or buy the equipment. Medicare will only cover your DME if your doctors and DME suppliers are enrolled in Medicare. Doctors and suppliers have to meet strict standards to enroll and stay enrolled in Medicare.

How to contact Medicare?

Medicare has specific rules for marketing to people with Medicare. Suppliers can’t make uninvited contact with you by phone about supplying a Medicare-covered item unless one of these situations applies: 1 You've given written permission to the supplier to contact you about a Medicare-covered item that you need to rent or buy. 2 The supplier is contacting you to coordinate delivery of the item. 3 The supplier is contacting you about providing a Medicare-covered item other than a covered item you already have, and the supplier has provided at least one covered item to you during the previous 15-month period.

Do Medicare contract suppliers have to accept assignment?

They also have to be in good standing with Medicare, and be accredited by an independent accreditation organization. Medicare contract suppliers must: Accept Assignment for all contract items. This means they can’t charge you more than the Medicare-approved amount .

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