No. A CHOW is a business transaction between two DMEPOS suppliers; CMS is not a party to that transaction. However, CMS is a party to any novation agreement involving a competitive bidding contract. CMS will execute a novation following a CHOW only if the successor or new entity meets all program requirements identified in §414.422(d). For more information, please see the CHOW fact sheet by selecting a round from the left hand navigation pane, then selecting Fact Sheets under Educational Information.

Medicare has issued regulations implementing new requirements for DMEPOS suppliers, including DMEPOS contract suppliers (see the interim final rule with comment period (IFC) titled Medicare and Medicaid Programs; Changes in Provider and Supplier Enrollment, Ordering and Referring, and Documentation Requirements; and Changes in Provider Agreements published on May 5, 2010; 75 FR 24437).

The requirements for physicians and treating practitioners to be enrolled in Medicare as a condition for Medicare claims payment as set forth in that regulation are consistent with contract suppliers’ responsibilities under the Competitive Bidding Program. Contract suppliers are expected to follow the requirements set forth in the May 5, 2010, IFC because covered items under the Competitive Bidding Program generally include only those DMEPOS items for which payment would otherwise be made under Medicare’s DMEPOS fee schedules outside the Competitive Bidding Program.

When Medicare begins to implement this new requirement, competitively bid and non-competitively bid items and services ordered by a physician or other treating practitioner who is not enrolled in Medicare will not be paid, as stipulated by the Affordable Care Act (ACA 2010). Therefore, contract suppliers would not be required to furnish items to beneficiaries whose ordering physician or treating practitioner is not enrolled with Medicare in PECOS.

Data entered into Form C does not save. You may enter all required information at one time and then select “View Completed Form and Print.”

You may also choose to enter product information for each single product category and competitive bidding area (CBA) combination and then select “View Completed Form and Print.” You must print each form since this information is not saved.

It is important that you print, sign and send ALL forms to the CBIC by the deadline. You must submit information for all product category and CBA combinations for which you were awarded a contract.

Please remember that you will not be able to make any changes to your information once you proceed to the “PRINT” page. Please review all information and make any changes before you proceed to print. If you use the browser to go back after you are on the print screen, you will need to re-enter all the information.

You can call the CBIC customer service center at 877-577-5331, and we will verify whether the report has been received.

No. Contract suppliers are entitled to begin a new capped rental period or to receive additional payments for oxygen only when a beneficiary is otherwise eligible to receive equipment from a grandfathered supplier. Regulations at 42 CFR 414.408(j) indicate that suppliers can become grandfathered suppliers only for beneficiaries permanently residing in a CBA who were renting DME or oxygen from them prior to the implementation of the program. Beneficiaries not residing in a CBA at the time the program began are not eligible for the grandfathering option. Therefore, the capped rental period for DME does not restart and the contract supplier is not entitled to receive additional oxygen rental payments, as specified in 42 CFR 414.408(h).

Beneficiaries moving into a CBA after the competitive bidding program becomes effective must use a contract supplier to receive competitively bid oxygen and DME. The moving beneficiary must return his/her rented item to the original supplier and receive replacement equipment from a contract supplier. A contract supplier is entitled to receive payments for the remainder of the rental period or until the equipment is no longer medically necessary, whichever occurs first.

The competitive bidding program has not changed the coverage criteria or medical necessity documentation requirements for competitively bid items. For example, in the case of power wheelchairs, beneficiaries who begin renting the power wheelchair in a non-CBA and then move to a CBA are not entitled to the first month purchase option as defined in 42 CFR 414.230(e).

A new detailed written order is required when a beneficiary switches suppliers. Each supplier that bills for an item must, in the event of an audit, be able to produce sufficient information to show that the coverage criteria and related medical necessity documentation requirements are met. The Medicare law requires that the supplier that furnishes the oxygen and oxygen equipment during the 36th month of continuous use must continue to furnish the oxygen and oxygen equipment after the cap for any period of medical need for the remainder of the reasonable useful lifetime of the equipment.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

The non-contract supplier must continue to furnish and bill for the rented DME item up to the first “anniversary date” that occurs after the start of the Competitive Bidding Program. (The anniversary date is the day of the month on which the item was first delivered to the beneficiary. Please note that an anniversary date can change if there is a break in service or need of more than 30 days.)

Under no circumstances may the noncontract supplier discontinue services by picking up a medically necessary item prior to the end of a month for which the supplier is eligible to receive a rental payment, even if the last day ends after the start date of the Competitive Bidding Program.

If a beneficiary chooses to switch to a contract supplier, the non-contract supplier and the contract supplier must make arrangements for the pickup of the old equipment and delivery of the new equipment that are suitable to the beneficiary. Such arrangements need to be coordinated between the non-contract and contract suppliers to ensure that the beneficiary has continued access to medically necessary equipment.

The contract supplier can start billing beginning with the first anniversary date that occurs once the Competitive Bidding Program begins.

If a beneficiary who would otherwise be entitled to obtain oxygen from a grandfathered supplier changes to a contract supplier, the contract supplier will be paid at least 10 monthly payment amounts at the single payment amount regardless of how many months the previous supplier was paid.

For example, for rental agreements in months 2 through 26, the new contract supplier will be paid for the remaining rental months of the period. Contract suppliers assuming rental agreements that are in months 27 or later will receive a minimum of 10 payments regardless of how many months the previous supplier was paid.

If the beneficiary changes to a new contract supplier, the new contract supplier must replace the equipment. If the beneficiary changes from a contract supplier to another contract supplier, the new contract supplier is NOT entitled to a minimum number of months of payment and will be paid the single payment amount for the duration of the rental period not to exceed 36 months.

If a beneficiary who would otherwise be entitled to obtain a capped rental DME item from a grandfathered supplier changes to a contract supplier, a new 13-month rental period begins regardless of how many months the previous supplier was paid. However, rental payments only continue if the item continues to be medically necessary. The contract supplier will be paid the single payment amount. If the beneficiary changes from a contract supplier to another contract supplier, a new rental period does NOT begin, and the new contract supplier will be paid the single payment amount for the duration of the capped rental period.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

No. This is considered a temporary interruption in billing or a break in service. The beneficiary’s use of the equipment did not cease while he or she was inpatient. Therefore, the medical need never ended. The grandfathered supplier must continue providing the oxygen upon the beneficiary’s discharge from the hospital or facility. This policy applies to any type of break in service (e.g., admission to a nursing facility, enrollment in a managed care plan, travel out of the country, etc.).

No. A supplier that chooses to become a grandfathered supplier for an item must continue to provide the item to all beneficiaries who choose to continue receiving the item from the grandfathered supplier.

A grandfathered supplier for oxygen and oxygen equipment must continue furnishing the oxygen and oxygen equipment for any period of medical need for the remainder of the reasonable useful lifetime (five years) of the equipment.

A grandfathered supplier for other rented durable medical equipment (DME) must furnish the item for the remaining months of the rental period, unless the item is no longer medically necessary. For capped rental DME, the grandfathering relationship ends when the ownership is transferred to the beneficiary or the item is no longer medically necessary. For example, if a non-contract supplier grandfathers the rental of a CPAP device, the supplier must continue to rent the item to the beneficiary unless the ownership is transferred to the beneficiary or the item is no longer medically necessary. 

After the DMEPOS Competitive Bidding Program is implemented, when a new period of continuous use begins following a break in need of greater than 60 days plus the days remaining in the last paid rental month, the beneficiary must obtain new or additional equipment from a contract supplier.

For more information, please view the Fact Sheet.

The beneficiary must obtain the replacement oxygen equipment from a contract supplier for oxygen and oxygen equipment for the CBA. The non-contract supplier should coordinate with the contract supplier during this transition. 

For more information, please view the Fact Sheet.

If a beneficiary who would otherwise be entitled to obtain oxygen from a grandfathered supplier changes to a contract supplier, the contract supplier will be paid at least 10 monthly payment amounts at the single payment amount regardless of how many months the previous supplier was paid.

For example, for rental agreements in months 2 through 26, the new contract supplier will be paid for the remaining rental months of the period. Contract suppliers assuming rental agreements that are in months 27 or later will receive a minimum of 10 payments regardless of how many months the previous supplier was paid.

If the beneficiary changes to a new contract supplier, the new contract supplier must replace the equipment. If the beneficiary changes from a contract supplier to another contract supplier, the new contract supplier is NOT entitled to a minimum number of months of payment and will be paid the single payment amount for the duration of the rental period not to exceed 36 months.

If a beneficiary who would otherwise be entitled to obtain a capped rental DME item from a grandfathered supplier changes to a contract supplier, a new 13-month rental period begins regardless of how many months the previous supplier was paid. However, rental payments only continue if the item continues to be medically necessary. The contract supplier will be paid the single payment amount. If the beneficiary changes from a contract supplier to another contract supplier, a new rental period does NOT begin, and the new contract supplier will be paid the single payment amount for the duration of the capped rental period.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

Yes. When CMS signs the novation agreement, it will become effective retroactive to the effective date of the CHOW.

Please wait to submit claims for contract items you furnish after the CHOW until CMS notifies you that the novation agreement has been accepted.

If you submit claims before the novation agreement has been accepted, the Durable Medical Equipment Medicare Administrative Contractors (DME MACs) will not know that you are a contract supplier, and the claims may be denied. 

Payment for covered items furnished after the effective date of the CHOW will be made at the single payment amount according to the competitive bidding contract.

For more information, please see the CHOW fact sheet by selecting a round from the left hand navigation pane, then selecting Fact Sheets under Educational Information.

The Grandfathering for Rented DME fact sheet indicates that the current supplier and the new contract supplier must coordinate the pickup and delivery of the equipment so that service to the beneficiary is not disrupted. The current supplier should provide copies of all supporting documentation, such as the physician order or Certificate of Medical Necessity (CMN) when applicable, to the new contract supplier. The CPAP compliance data would be an example of supporting documentation. The contract supplier needs to obtain all documents and information necessary to demonstrate adherence to coverage requirements set forth in statute, regulation, rule, or national or local coverage determinations.

For more information, please view the Grandfathering for Rented DME fact sheet, by selecting a round from the left hand navigation pane, then selecting Fact Sheets under Educational Information.  

Medicare program integrity guidelines require a new order when there is a change in suppliers. When a beneficiary transitions from a non-contract supplier to a contract supplier or from a contract supplier to a contract supplier, this constitutes a change in suppliers and a new detailed written order is required.

Under competitive bidding, most transitions from non-contract suppliers to contract suppliers will occur during the first few months of the contract period. In order to facilitate transition for new competitive bidding contract suppliers and avoid disruptions in service during the first few months of the contract period, the new contract supplier is only required to obtain a new dispensing order from the treating physician prior to providing a competitively bid item. The new contract supplier does not need to acquire a detailed written order before submitting a claim for a competitively bid item furnished prior to May 1, 2011, but must obtain the detailed written order on or before May 1, 2011. For changes in suppliers that occur on or after May 1, 2011, the new contract supplier does need to acquire a detailed written order before submitting a claim for a competitively bid item.

In addition, for changes in suppliers that occur before May 1, 2011, a new dispensing order must be obtained before submitting a claim for a competitively bid item if the contract supplier is not able to obtain or validate the original order and other required documents from the non-contract supplier. If documentation in the beneficiary’s medical record as of the date of the transition is obtained from the non-contract supplier and meets Medicare requirements for documenting medical necessity, the contract supplier does not have to obtain a new written order until May 1, 2011. Copies of documents, rather than original documents, are acceptable during the transition period prior to May 1, 2011.

For the Round 1 Rebid, this policy applies to changes in suppliers for competitively bid items from a non-contract supplier to a contract supplier in which the transition to the new supplier and initial date of service for the new equipment takes place from January 1, 2011, through April 30, 2011.

Note: The coverage criteria for an item are unaffected by the competitive bidding status of a supplier. Each supplier that bills for an item must, in the event of an audit, be able to produce sufficient information to show that the reimbursement criteria are met. Suppliers may share information among themselves. If required information is not available, it may be necessary to repeat testing, required trials, physician visits, etc., in order to be able to justify payment. Medicare claims payment history does not provide the type of information necessary to demonstrate that coverage criteria have been met.

No, assuming the patient met the coverage requirements during the initial 90-day trial.

The non-contract supplier must continue to furnish and bill for the rented DME item up to the first “anniversary date” that occurs after the start of the Competitive Bidding Program. (The anniversary date is the day of the month on which the item was first delivered to the beneficiary. Please note that an anniversary date can change if there is a break in service or need of more than 30 days.)

Under no circumstances may the noncontract supplier discontinue services by picking up a medically necessary item prior to the end of a month for which the supplier is eligible to receive a rental payment, even if the last day ends after the start date of the Competitive Bidding Program.

If a beneficiary chooses to switch to a contract supplier, the non-contract supplier and the contract supplier must make arrangements for the pickup of the old equipment and delivery of the new equipment that are suitable to the beneficiary. Such arrangements need to be coordinated between the non-contract and contract suppliers to ensure that the beneficiary has continued access to medically necessary equipment.

The contract supplier can start billing beginning with the first anniversary date that occurs once the Competitive Bidding Program begins.

No. Contract suppliers are entitled to begin a new capped rental period or to receive additional payments for oxygen only when a beneficiary is otherwise eligible to receive equipment from a grandfathered supplier. Regulations at 42 CFR 414.408(j) indicate that suppliers can become grandfathered suppliers only for beneficiaries permanently residing in a CBA who were renting DME or oxygen from them prior to the implementation of the program. Beneficiaries not residing in a CBA at the time the program began are not eligible for the grandfathering option. Therefore, the capped rental period for DME does not restart and the contract supplier is not entitled to receive additional oxygen rental payments, as specified in 42 CFR 414.408(h).

Beneficiaries moving into a CBA after the competitive bidding program becomes effective must use a contract supplier to receive competitively bid oxygen and DME. The moving beneficiary must return his/her rented item to the original supplier and receive replacement equipment from a contract supplier. A contract supplier is entitled to receive payments for the remainder of the rental period or until the equipment is no longer medically necessary, whichever occurs first.

The competitive bidding program has not changed the coverage criteria or medical necessity documentation requirements for competitively bid items. For example, in the case of power wheelchairs, beneficiaries who begin renting the power wheelchair in a non-CBA and then move to a CBA are not entitled to the first month purchase option as defined in 42 CFR 414.230(e).

A new detailed written order is required when a beneficiary switches suppliers. Each supplier that bills for an item must, in the event of an audit, be able to produce sufficient information to show that the coverage criteria and related medical necessity documentation requirements are met. The Medicare law requires that the supplier that furnishes the oxygen and oxygen equipment during the 36th month of continuous use must continue to furnish the oxygen and oxygen equipment after the cap for any period of medical need for the remainder of the reasonable useful lifetime of the equipment.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

Yes. A contract supplier for Round 1 Rebid must offer the lump sum purchase option for a standard power wheelchair furnished prior to January 1, 2014, to a beneficiary who permanently resides within a CBA included in the Round 1 Rebid and travels to the CBA for which the contract supplier was awarded a contract for furnishing standard power mobility devices.

Yes. Under competitive bidding, payment for capped rental DME items is made in an amount equal to 10 percent of the single payment amount for each of the first 3 months and 7.5 percent of the single payment amount for the remaining 4 through 13 months of rental. The supplier is required to transfer title to the equipment to the beneficiary after 13 months of continuous use.

No. A supplier that chooses to become a grandfathered supplier for an item must continue to provide the item to all beneficiaries who choose to continue receiving the item from the grandfathered supplier.

A grandfathered supplier for oxygen and oxygen equipment must continue furnishing the oxygen and oxygen equipment for any period of medical need for the remainder of the reasonable useful lifetime (five years) of the equipment.

A grandfathered supplier for other rented durable medical equipment (DME) must furnish the item for the remaining months of the rental period, unless the item is no longer medically necessary. For capped rental DME, the grandfathering relationship ends when the ownership is transferred to the beneficiary or the item is no longer medically necessary. For example, if a non-contract supplier grandfathers the rental of a CPAP device, the supplier must continue to rent the item to the beneficiary unless the ownership is transferred to the beneficiary or the item is no longer medically necessary. 

After the DMEPOS Competitive Bidding Program is implemented, when a new period of continuous use begins following a break in need of greater than 60 days plus the days remaining in the last paid rental month, the beneficiary must obtain new or additional equipment from a contract supplier.

For more information, please view the Fact Sheet.

No. Contract suppliers are entitled to begin a new capped rental period or to receive additional payments for oxygen only when a beneficiary is otherwise eligible to receive equipment from a grandfathered supplier. Regulations at 42 CFR 414.408(j) indicate that suppliers can become grandfathered suppliers only for beneficiaries permanently residing in a CBA who were renting DME or oxygen from them prior to the implementation of the program. Beneficiaries not residing in a CBA at the time the program began are not eligible for the grandfathering option. Therefore, the capped rental period for DME does not restart and the contract supplier is not entitled to receive additional oxygen rental payments, as specified in 42 CFR 414.408(h).

Beneficiaries moving into a CBA after the competitive bidding program becomes effective must use a contract supplier to receive competitively bid oxygen and DME. The moving beneficiary must return his/her rented item to the original supplier and receive replacement equipment from a contract supplier. A contract supplier is entitled to receive payments for the remainder of the rental period or until the equipment is no longer medically necessary, whichever occurs first.

The competitive bidding program has not changed the coverage criteria or medical necessity documentation requirements for competitively bid items. For example, in the case of power wheelchairs, beneficiaries who begin renting the power wheelchair in a non-CBA and then move to a CBA are not entitled to the first month purchase option as defined in 42 CFR 414.230(e).

A new detailed written order is required when a beneficiary switches suppliers. Each supplier that bills for an item must, in the event of an audit, be able to produce sufficient information to show that the coverage criteria and related medical necessity documentation requirements are met. The Medicare law requires that the supplier that furnishes the oxygen and oxygen equipment during the 36th month of continuous use must continue to furnish the oxygen and oxygen equipment after the cap for any period of medical need for the remainder of the reasonable useful lifetime of the equipment.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

No. This is considered a temporary interruption in billing or a break in service. The beneficiary’s use of the equipment did not cease while he or she was inpatient. Therefore, the medical need never ended. The grandfathered supplier must continue providing the oxygen upon the beneficiary’s discharge from the hospital or facility. This policy applies to any type of break in service (e.g., admission to a nursing facility, enrollment in a managed care plan, travel out of the country, etc.).

No. A supplier that chooses to become a grandfathered supplier for an item must continue to provide the item to all beneficiaries who choose to continue receiving the item from the grandfathered supplier.

A grandfathered supplier for oxygen and oxygen equipment must continue furnishing the oxygen and oxygen equipment for any period of medical need for the remainder of the reasonable useful lifetime (five years) of the equipment.

A grandfathered supplier for other rented durable medical equipment (DME) must furnish the item for the remaining months of the rental period, unless the item is no longer medically necessary. For capped rental DME, the grandfathering relationship ends when the ownership is transferred to the beneficiary or the item is no longer medically necessary. For example, if a non-contract supplier grandfathers the rental of a CPAP device, the supplier must continue to rent the item to the beneficiary unless the ownership is transferred to the beneficiary or the item is no longer medically necessary. 

After the DMEPOS Competitive Bidding Program is implemented, when a new period of continuous use begins following a break in need of greater than 60 days plus the days remaining in the last paid rental month, the beneficiary must obtain new or additional equipment from a contract supplier.

For more information, please view the Fact Sheet.

The beneficiary must obtain the replacement oxygen equipment from a contract supplier for oxygen and oxygen equipment for the CBA. The non-contract supplier should coordinate with the contract supplier during this transition. 

For more information, please view the Fact Sheet.

If a beneficiary who would otherwise be entitled to obtain oxygen from a grandfathered supplier changes to a contract supplier, the contract supplier will be paid at least 10 monthly payment amounts at the single payment amount regardless of how many months the previous supplier was paid.

For example, for rental agreements in months 2 through 26, the new contract supplier will be paid for the remaining rental months of the period. Contract suppliers assuming rental agreements that are in months 27 or later will receive a minimum of 10 payments regardless of how many months the previous supplier was paid.

If the beneficiary changes to a new contract supplier, the new contract supplier must replace the equipment. If the beneficiary changes from a contract supplier to another contract supplier, the new contract supplier is NOT entitled to a minimum number of months of payment and will be paid the single payment amount for the duration of the rental period not to exceed 36 months.

If a beneficiary who would otherwise be entitled to obtain a capped rental DME item from a grandfathered supplier changes to a contract supplier, a new 13-month rental period begins regardless of how many months the previous supplier was paid. However, rental payments only continue if the item continues to be medically necessary. The contract supplier will be paid the single payment amount. If the beneficiary changes from a contract supplier to another contract supplier, a new rental period does NOT begin, and the new contract supplier will be paid the single payment amount for the duration of the capped rental period.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

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.  

If you already have a contractual agreement with your subcontractor, you may submit a copy of that agreement along with your required documents.

For more information, please view the Subcontracting fact sheet, which you can find on this website by selecting Educational Information, then Fact Sheets.

A contract supplier may subcontract specifically for the delivery of the item (e.g., by using a common carrier such as Federal Express, the United States Postal Service, or the United Parcel Service). If the subcontractor only delivers the item, the subcontractor need not be accredited. If the subcontractor is providing more than the delivery by setting up the equipment or giving instructions about the use of the item, then the subcontractor must be accredited.

All contract suppliers and their subcontractors must comply with federal laws and regulations including the Stark and federal anti-kickback statutes. To report suspected illegal practices, please contact the Competitive Bidding Implementation Contractor (CBIC) Customer Service Center toll-free at 877-577-5331.

New accessories or supplies, such as the CPAP mask in the example given, would not be necessary just because of the transition to the new supplier. The normal utilization parameters continue to apply unless the accessory previously purchased from the non-contract supplier does not work with the new equipment furnished by the contract supplier. If a previously purchased accessory is not compatible with the new equipment, the contract supplier may bill for the new item(s). Due to claims editing limitations, the new item(s) may deny for “same or similar” and require a redetermination. Resolution through the appeals channel is the proper process to follow. Changing base equipment that renders the accessories unusable due to incompatibility is a justifiable reason to replace the accessory.

Note: Most supplies used with PAP devices are dispensed in three-month amounts. With the exception of humidifiers and certain filters, these supplies are regarded as interchangeable between devices. Thus, the supplies obtained in December should be sufficient to meet the beneficiary’s needs until the next quarter, at which time the new supplier may provide and bill for a three-month supply.

In these cases, the contract supplier will need to obtain a new written order by May 1, 2011. For the four-month transition period (from January 1, 2011, through April 30, 2011), the contract supplier may deliver and bill for competitively bid items without a new written order after obtaining a new verbal or preliminary written order from the treating physician. It is the responsibility of the contract supplier to ensure that a detailed written order and other documents and information necessary to demonstrate adherence to the Local Coverage Determination (LCD) are obtained.

No.

If a beneficiary who would otherwise be entitled to obtain oxygen from a grandfathered supplier changes to a contract supplier, the contract supplier will be paid at least 10 monthly payment amounts at the single payment amount regardless of how many months the previous supplier was paid.

For example, for rental agreements in months 2 through 26, the new contract supplier will be paid for the remaining rental months of the period. Contract suppliers assuming rental agreements that are in months 27 or later will receive a minimum of 10 payments regardless of how many months the previous supplier was paid.

If the beneficiary changes to a new contract supplier, the new contract supplier must replace the equipment. If the beneficiary changes from a contract supplier to another contract supplier, the new contract supplier is NOT entitled to a minimum number of months of payment and will be paid the single payment amount for the duration of the rental period not to exceed 36 months.

If a beneficiary who would otherwise be entitled to obtain a capped rental DME item from a grandfathered supplier changes to a contract supplier, a new 13-month rental period begins regardless of how many months the previous supplier was paid. However, rental payments only continue if the item continues to be medically necessary. The contract supplier will be paid the single payment amount. If the beneficiary changes from a contract supplier to another contract supplier, a new rental period does NOT begin, and the new contract supplier will be paid the single payment amount for the duration of the capped rental period.

For more information, please view the Grandfathering for Oxygen or Grandfathering for DME fact sheet.

Yes. A contract supplier for Round 1 Rebid must offer the lump sum purchase option for a standard power wheelchair furnished prior to January 1, 2014, to a beneficiary who permanently resides within a CBA included in the Round 1 Rebid and travels to the CBA for which the contract supplier was awarded a contract for furnishing standard power mobility devices.