Medicare Blog

how to bill medicare for durable medical equipment

by Roger Kemmer Published 2 years ago Updated 1 year ago
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Once you have the prescription, you can take it to a DME provider that’s enrolled in Medicare and accepts assignments. They will let you know how soon you will receive the equipment, and the store will also bill Medicare for you. You’ll receive a bill in the mail for your portion of the equipment cost.

Full Answer

Does Medicare pay for durable equipment?

Yes, Medicare covers durable medical equipment in many cases. Medicare Part B covers a range durable medical equipment, also referred to as DME, but it needs to meet certain criteria. For Medicare to cover DME, a doctor must deem it medically necessary, you must have a prescription for in-home use, and you need to buy it from an authorized seller.

What are examples of durable medical equipment?

  • Historical Market Size (2020): USD 190.5 billion
  • Forecast CAGR (2022-2027): 6.29%
  • Forecast Market Size (2027): USD 274.9 billion

What durable equipment will Medicare pay for?

Some examples of Durable Medical Equipment Covered by Medicare: Blood sugar monitors and test strips Canes CPAP devices [CPAP machines] Crutches Hospital beds Infusion pumps (some medicines need these) Nebulizers and nebulizer medications Oxygen equipment, supplies and accessories Power scooters ...

Is durable equipment covered by Medicare?

Medicare covers durable medical equipment (DME) as well as supplies that go along with it. For example, when you get a blood sugar meter (glucometer), you also need test strips and lancets as supplies to use the glucometer. Medicare will usually cover these supplies as DME.

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When will Medicare change the KU modifier?

As aforementioned, these system changes will be implemented on July 1, 2020.

When will CMS reprocess claims?

Claims for these accessories submitted prior to July 1, 2020, with dates of service from January 1, 2020 through June 30, 2020, will need to be reprocessed to ensure that CMS pays the unadjusted fee schedule amounts, as required by section 106 of the Further Consolidated Appropriations Act, 2020.

What is Medicare Accessibility Act?

CMS is implementing the Patient Access and Medicare Protection Act to ensure that beneficiaries have access to wheelchair accessories and seat and back cushions when furnished with Group 3 complex rehabilitative power wheelchairs. To ensure beneficiary access to these accessories particularly for these vulnerable populations, advance payment may be available for suppliers. Prior to July 1, suppliers will be paid the adjusted fee schedule rates. The average reduction during this period for these items is approximately 10%. During this time, CMS has announced that suppliers are able to submit a single advance payment request for multiple claims if the conditions described in CMS regulations at 42 CFR Section 421.214 are met. Additional information is below.

What is gap filling in Medicare?

For newly covered items of DMEPOS paid on a fee schedule basis where a Medicare fee does not exist , the Centers for Medicare & Medicaid Services (CMS) uses a process to establish fees called gap-filling. This allows Medicare to establish a price that aligns with the statutory requirements for the DMEPOS fee schedule.

What is a DMEPOS file?

The DMEPOS public use file contains fee schedules for certain items that were adjusted based on information from the DMEPOS Competitive Bidding Program in accordance with Section 1834 (a) (1) (F) of the Act.

What is TTFT in Medicare?

TTFT is a system consisting of an electromagnetic field generator and transducer arrays and will be covered under the Medicare Part B benefit for durable medical equipment (DME) for items and services furnished on or after September 1, 2019.

When to use KU modifier?

Suppliers should use the KU modifier for claims with dates of service on or after July 1, 2020 through June 30, 2021 for Attachment A codes that are furnished in conjunction with complex rehabilitative manual wheelchairs or certain manual wheelchairs.

What is assignment in Medicare?

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.

Does Medicare pay for DME repairs?

Medicare will pay 80% of the Medicare-approved amount (up to the cost of replacing the item) for repairs. You pay the other 20%. Your costs may be higher if the supplier doesn’t accept assignment.

What is the difference between Medicare Advantage and Original?

The main difference between Original Medicare and Medicare Advantage lies in how you get a durable medical equipment item covered. For example, a Medicare Advantage plan may require prior authorization in order for items to be covered.

What is DME in medical terms?

Medicare defines durable medical equipment, or DME, as reusable medical equipment that has been deemed medically necessary. Your doctor or another health care provider determines what equipment you need per Medicare guidelines. He or she assesses your health condition, what equipment can be used in your home and what equipment you are able to use.

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How long does a durable medical equipment item last?

Used because of an illness or injury. Able and necessary to be used at home (though you may also use it outside your home)*. Likely to last for three or more years.

What are some examples of DME?

Some examples of DME are walkers, hospital beds, home oxygen equipment, diabetes self-testing equipment (and supplies), and certain nebulizers and their medications (non-disposable). Wheelchairs and power scooters are also included in the list of DME, but additional rules apply. (See below.)

What is Part B for Medicare?

Original Medicare’s Part B covers durable medical equipment items when your Medicare-enrolled doctor or health care provider prescribes it for you to use at home. Once you have the doctor’s prescription, you can take it to any Medicare-enrolled supplier.

What is considered durable medical equipment?

Durable medical equipment that is not suitable for at-home use such as paraffin bath units used in hospitals or skilled nursing facilities. Most items that are considered as providing convenience or comfort (ex. air conditioners) Items that are thrown away after use or that aren’t used with equipment (ex. catheters)

What is the CPM code for DME?

The CPM devices (HCPCS code E0935) are classified as items requiring frequent and substantial servicing and are covered as DME as follows (see the Medicare National Coverage Determinations Manual.):

How long do DME MACs pay rental fees?

For these items of DME, A/B MACs (HHH) and DME MACs pay the fee schedule amounts on a monthly rental basis not to exceed a period of continuous use of 15 months. In the tenth month of rental, the beneficiary is given a purchase option (see §30.5.2). If the purchase option is exercised, A/B MACs (HHH) and DME MACs continue to pay rental fees not to exceed a period of continuous use of 13 months and ownership of the equipment passes to the beneficiary. If the purchase option is not exercised, A/B MACs (HHH) and DME MACs continue to pay rental fees until the 15 month cap is reached and ownership of the equipment remains with the supplier (see §30.5.4). In the case of electric wheelchairs only, the beneficiary must be given a purchase option at the time the equipment is first provided (see §30.5.3).

How to determine liability to a provider other than an HHA?

To determine patient liability to a provider other than an HHA (including nominal charge providers other than a HHA), A/B MACs (A) subtract any unmet deductible from the actual charge and multiply the remainder by 20 percent. The result, plus the unmet deductible is the patient's liability. Coinsurance is applied as applicable.

How to determine Part B payment to nominal charge?

To determine the Part B payment to a nominal charge HHA , A/B MACs (HHH) subtract any unmet Part B deductible from the fee schedule amount and multiply the remainder by

How to determine Part B payment?

To determine the Part B payment to a provider other than nominal charge provider, A/B MACs (A) and (HHH) subtract any unmet Part B deductible from the lower of the actual charge or the fee schedule amount for the item or service and multiply the remainder by

How is PEN coverage determined?

The PEN coverage is determined by information provided by the treating physician and the PEN supplier. A completed certification of medical necessity (CMN) must accompany and support initial claims for PEN to establish whether coverage criteria are met and to ensure that the PEN therapy provided is consistent with the attending or ordering physician's prescription. DME MACs ensure that the CMN contains pertinent information from the treating physician. Uniform specific medical data facilitate the review and promote consistency in coverage determinations and timelier claims processing.

What is an enteral care kit?

Enteral care kits contain all the necessary supplies for the enteral patient using the syringe, gravity, or pump method of nutrient administration. Parenteral nutrition care kits and their components are considered all-inclusive items necessary to administer therapy during a monthly period.

What is a CMN form?

Certification of Medically Necessity (CMN) Certain DME equipment require CMN form from a doctor to support the medically necessity of the item to a beneficiary in order to reimburse the claim for DME supplier.

What does DME mean in medical terms?

DME means Durable Medical Equipment. Medical equipment’s that are utilized by the provider in treatment of the procedure or it’s prescribed by the provider to the patient, which is appropriate to use in the home and helps to boost patient’s daily activities. It means DME is principally used to help in for a medical purpose, ...

Does DME require a prescription?

DME requires a prescription to either rent or purchase the equipment. Authorization is required from insurances for a few of the Durable Medical Equipment’s and it varies from insurance to insurance. Medicare insurance as secondary won’t pay for the rental items. It means Medicare insurance as secondary they pay just for the purchased items.

What is a DME in Medicare?

Medicare Reimbursement for Durable Medical Equipment. Wheelchairs, walkers, hospital beds, and oxygen pumps are all examples of durable medical equipment (DME). For a piece of medical equipment to be considered durable, it must be able to withstand extended use.

How much does Medicare pay for Part B?

Medicare Part B will pay 80% of the cost, while you pay the other 20%. This is known as your Part B coinsurance. Medicare has a pre-approved price for each type of durable medical equipment though, and these rates are heavily discounted from the retail price.

How long do you have to file a DME claim?

For Medicare to even consider your reimbursement claim, you must file it no later than 12 months after the date of service – or in this case date of which you purchased the equipment.

Where can I download Medicare reimbursement form?

You can download the reimbursement form at Medicare’s website or at the link below. The form is called the Patient Request for Medical Payment form. You must carefully read and fill out each part of the form or else Medicare will send it back to you for you to complete and re-submit.

Does Medicare cover DME?

Medicare has fairly strict guidelines for covering DME. For instance, Medicare will not cover a power wheelchair if the only reason you need it is for getting around outside of your home. You must need the equipment to safely get around inside your home in order for Medicare to cover it at all.

Is DME part of Medicare?

It’s important to use a DME provider that is either part of Medicare’s competitive bidding program or accepts Medicare assignment rates. Otherwise, you could end up having to pay excess charges up to an additional 15% of the approved price.

What is Durable Medical Equipment?

Durable medical equipment (DME) is the technical term for the equipment that can be used multiple times and is provided for a medical reason. These items are intended to help you complete your daily activities, and are medically necessary due to a medical condition or recent procedure.

What Types of DME are Covered?

Durable medical equipment that is prescribed by your doctor is generally covered by Medicare. Keep in mind that Medicare may cover the basic form of equipment rather than an advanced version with extra features. For example, for diabetes, Medicare (Part B) covers insulin pumps as DME

What is the Criteria for DME?

The criteria for getting DME coverage is simple, which is why so many types of equipment are covered. The equipment must be:

How to Get Durable Medical Equipment with Medicare Coverage

If you know that you need medical equipment, how do you go about getting it?

Learn More About Medicare and Durable Medical Equipment

This guide answered most of the questions we commonly receive about Medicare coverage of durable medical equipment. However, you might have questions about your specific situation or be interested in comparing Medicare plans based on your needs. We’re here to help. Contact us today for more information about Medicare and DME.

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