Medicare Blog

new rules for how medicare pays suppliers for oxygen equipment

by Joany Little DDS Published 2 years ago Updated 1 year ago
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Recent legislation changes how Medicare pays for oxygen equipment and supplies. Effective Jan. 1, Medicare will continue to pay 36 monthly payments (less deductible) to oxygen equipment suppliers, but beneficiaries will not own the equipment at the end of the three-year contract — as they have in the past.

Full Answer

Does Medicare pay for oxygen equipment?

CENTERS FOR MEDICARE & MEDICAID SERVICES. New Rules for How Medicare Pays Suppliers for Oxygen Equipment. Changes in law require Medicare to change the way it pays suppliers for oxygen equipment and supplies. You will still be able to get your oxygen equipment. However, you should know about the new rules that start January 1, 2009.

How long does my supplier have to provide oxygen equipment?

If you have Medicare and use oxygen, you’ll rent oxygen equipment from a supplier for 36 months. After 36 months, your supplier must continue to provide oxygen equipment and related supplies for an additional 24 months. Your supplier must provide equipment and supplies for up to a total of 5 years, as long as you have a medical need for oxygen.

Do you have to pay for oxygen after 5 years?

Your doctor may decide that your oxygen equipment is no longer effective for you. If so, he or she may notify the oxygen supplier with a new letter of medical necessity for different equipment. The oxygen supplier must provide you with equipment that fits your needs. It should address your mobility needs both inside and outside your home.

Should you rent or buy oxygen equipment?

Medicare pays oxygen suppliers a monthly rental fee for the first 36-months for the equipment, oxygen, supplies, and maintenance. In addition to supplier payments made by Medicare, oxygen patients pay 20% of each month’s rental fee. After the initial 36-month rental period, oxygen patients pay no more rental fees.

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Will Medicare pay for the purchase of a portable oxygen concentrator?

Medicare does not cover the cost of purchasing an oxygen concentrator; that said, when you ask, “Are portable oxygen concentrators covered by Medicare?” the answer is: Sometimes. Medicare may cover oxygen equipment rental costs if you are eligible for Medicare and approved for therapeutic oxygen use.

How do you bill a portable oxygen concentrator?

Code E1392 describes an oxygen concentrator which is designed to be portable, is capable of delivering 85% or greater oxygen concentration, and is capable of operating on either AC or DC (e.g., auto accessory outlet) power.Oct 15, 2020

Can you bill E1390 and E1392 together?

o Code E1392 is not reimbursable in conjunction with any other oxygen system (codes E1390, E0424, E0431, E0434 or E0439). o Do not report modifier '-RR' with code E1392.Jan 1, 2009

Does Medicare pay for E0445?

Oximeters (E0445) and replacement probes (A4606) will be denied as non-covered because they are monitoring devices that provide information to the treating practitioner to assist in managing the beneficiary's treatment. Respiratory therapist services are non-covered under the DME benefit.

What is the Revenue Code for oxygen?

If the prescribed amount of oxygen is greater than 4 LPM, suppliers use either of the following modifiers with the stationary oxygen HCPCS code: o The modifier “QG”; HHAs use revenue code 0603. The monthly payment amount for stationary oxygen is increased by 50 percent. o The modifier “QR”; HHAs use revenue code 0603.Feb 14, 2018

What is the CPT code for oxygen therapy?

CPT code 99183 Physician attendance and supervision of hyperbaric oxygen therapy, per session, is reported for physician attendance of each session of hyperbaric oxygen therapy.

What ICD 10 codes cover oxygen?

ICD-10 code Z99. 81 for Dependence on supplemental oxygen is a medical classification as listed by WHO under the range - Factors influencing health status and contact with health services .

What is the CPT code for oxygen administration?

For 2019, CMS added a new oxygen payment class that would set the rental payment for portable liquid oxygen (HCPCS code E0434) equivalent to the rental payment made for portable concentrators and transfilling equipment (HCPCS codes E1392, K0738, or E0433).Jul 31, 2019

How long does Medicare provide oxygen?

If you have Medicare and use oxygen, you’ll rent oxygen equipment from a supplier for 36 months. After 36 months, your supplier must continue to provide oxygen equipment and related supplies for an additional 24 months. Your supplier must provide equipment and supplies for up to a total of 5 years, as long as you have a medical need for oxygen.

How much does Medicare pay for oxygen tanks?

If you use oxygen tanks or cylinders that need delivery of gaseous or liquid oxygen contents, Medicare will continue to pay each month for the delivery of contents after the 36-month rental period, which means that you will pay 20% of the Medicare-approved amount for these deliveries.

What is Part B for medical equipment?

Oxygen equipment & accessories. Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services. covers the rental of oxygen equipment and accessories as durable medical equipment (DME) that your doctor prescribes for use in your home. Medicare will help pay for oxygen 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 deductible applies.

How long does a supplier own equipment?

The supplier owns the equipment during the entire 5-year period . If your medical need continues past the 5-year period, your supplier no longer has to continue providing your oxygen and oxygen equipment, and you may choose to get replacement equipment from any supplier.

Does Medicare pay for oxygen?

Medicare will help pay for oxygen equipment, contents and supplies for the delivery of oxygen when all of these conditions are met: Your doctor says you have a severe lung disease or you’re not getting enough oxygen. Your health might improve with oxygen therapy.

Does Medicare cover oxygen equipment?

If you meet the conditions above, Medicare oxygen equipment coverage includes: Systems that provide oxygen. Containers that store oxygen. Tubing and related oxygen accessories for the delivery of oxygen and oxygen contents. Medicare may also pay for a humidifier when it's used with your oxygen machine.

What to do if oxygen supplier says no longer provides therapy?

If your supplier tells you they’ll no longer provide your prescribed therapy, and you haven’t completed your 5-year contract, you can: Get the oxygen supplier to put their intentions in writing. File a complaint.

What is a letter to a new supplier?

A letter to a new supplier you’ve chosen, transferring responsibility for oxygen therapy services to the new supplier on a specific date.

Can a supplier change the type of equipment?

Your supplier can’t change the type of equipment or number of tank refills you get unless your doctor orders a change. If you find you need more tank refills, ask your doctor to submit an updated letter of medical necessity to your supplier.

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