Non-contract suppliers that are renting competitively bid durable medical equipment (DME)* or oxygen and oxygen equipment at the time the DMEPOS Competitive Bidding Program is implemented may choose to become grandfathered suppliers for these items. A non-contract supplier that chooses to become a grandfathered supplier for any product category is required to grandfather all items within that product category to all Medicare beneficiaries who are renting the DME or oxygen and oxygen equipment at the time the program is implemented and who choose the grandfathering option. For Round 2, the program implementation date is July 1, 2013.
Non-contract suppliers must provide written notification of their decision whether to be a grandfathered supplier to all of their Medicare beneficiaries who reside in a competitive bidding area (CBA) and are currently renting competitively bid DME or oxygen and oxygen equipment at least 30 business days prior to program implementation. The notification must inform the beneficiaries about their decision whether to grandfather and explain the grandfathering process and the beneficiaries’ options.
Please see The DMEPOS Competitive Bidding Program Grandfathering Requirements for Non-Contract Suppliers Fact Sheet for detailed information about grandfathering payment rules.
* Rented DME items include power and manual wheelchairs, hospital beds, continuous positive airway pressure devices (CPAPs), negative pressure wound therapy (NPWT) pumps, respiratory assistive devices (RADs), support surfaces and walkers. Items in the enteral nutrients, equipment and supplies product category and the national mail-order program cannot be grandfathered.
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