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Grandfathering Information
  • A non-contract supplier that elects not to become a grandfathered supplier is required to pick up the item it is currently renting to the beneficiary from the beneficiary's home after proper notification. Proper notification includes a 30-day, a 10-day, and a 2-day notice of the supplier's decision not to become a grandfathered supplier to its Medicare beneficiaries who are currently renting competitively bid durable medical equipment (DME) or oxygen and oxygen equipment and who reside in a competitive bidding area (CBA).
  • The 30-day notification to the beneficiary must be in writing (e.g., by letter or postcard) and must be sent at least 30 business days prior to the implementation of the program. For your convenience, we have provided a sample notification letter that includes all required information. If you do not use the sample notification letter, the notification must:
    • Identify the equipment the supplier is NOT willing to continue to rent to the beneficiary.
    • Indicate the date on which the equipment will be picked up.
    • State that the equipment will be rented up to the first rental anniversary date that occurs after the start of the competitive bidding program.
    • Explain that the beneficiary must select a contract supplier for Medicare to continue to pay for the equipment and related supplies and accessories.
    • Refer the beneficiary to the Supplier Directory on the Medicare website at www.medicare.gov/supplierdirectory/search.html. Indicate that the beneficiary should not delay in selecting a contract supplier.
    • Provide the beneficiary with Medicare contact information for additional assistance. The beneficiary may call 1-800-MEDICARE or visit the Medicare website at www.medicare.gov.
  • The non-contract supplier must maintain proof of delivery of the written notification.
  • The non-contract supplier must provide the beneficiary with two additional notices prior to picking up its equipment. The non-contract supplier must contact the beneficiary ten business days prior to picking up the equipment and again two business days before the pickup.
  • The non-contract supplier and contract supplier must coordinate the pickup and delivery of the equipment with the beneficiary. The pickup and delivery should be on the first anniversary date that occurs after July 1, 2016, or another date agreed to by the beneficiary. The anniversary date is the date of the month on which the item was first delivered to the beneficiary by the non-contract supplier. It is the date when a new monthly rental period begins.

Please see The DMEPOS Competitive Bidding Program Grandfathering Requirements for Non-Contract Suppliers fact sheet for additional information.

Grandfathering Requirements for Non-Contract Suppliers Fact SheetOpen in New Window
Non-contract suppliers that furnish competitively bid rented DME or oxygen and oxygen equipment to beneficiaries in CBAs must: (1) decide if they will elect to become grandfathered suppliers, (2) notify beneficiaries of their grandfathering decisions, and (3) fulfill other requirements as described in this fact sheet...
PDF Sample Notification Letter for Supplier that Chooses NOT to Be a Grandfathered Supplier (PDF, PDF - 20 KB)

last updated on 11/30/2017


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