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A contract supplier is responsible for repairing equipment that the supplier is currently renting to a Medicare beneficiary, including oxygen equipment furnished after the equipment rental payment cap.
The monthly rental payments made by Medicare for durable medical equipment (DME) and oxygen equipment include payment for necessary repairs, maintenance and servicing of the rented equipment. For oxygen equipment, the statute and regulations require the supplier to continue furnishing the oxygen equipment after the rental payment cap for any period of medical need for the remainder of the reasonable useful lifetime of the oxygen equipment. A contract supplier may repair the rental equipment itself or subcontract for this service.
CMS recognizes that contract suppliers may not have the training or expertise to repair all brands or types of equipment; therefore, a contract supplier is not obligated to repair beneficiary-owned equipment. Any Medicare-enrolled supplier may perform repairs to beneficiary-owned equipment.
Under the Competitive Bidding Program, the contract supplier is responsible for maintaining rented equipment. Maintenance and servicing of beneficiary-owned equipment may be performed by any supplier with a valid Medicare billing number. All Medicare-enrolled suppliers, including contract suppliers, must be in compliance with all of the supplier standards and be accredited. The Medicare-enrolled supplier is always responsible for meeting the supplier standards under 42 CFR 424.57, regardless of whether it chooses to make repairs or perform maintenance directly or through a subcontractor.
For more information, please view the Repairs and Replacement fact sheet, which you can find on this website by selecting a round from the left hand navigation pane, then selecting Fact Sheets under Educational Information.