Update on Restarting 36-month Medicare Oxygen Rental

Earlier this week we circulated an article from HMENews titled HME News: CMS throws safety net to oxygen patients.

We have received several requests as to the source of the information in addition to reports that CMS representatives are not acknowledging this information.

The original release can be found in a PDF document on the CMS website at: http://www.cms.gov/Outreach-and-Education/Outreach/FFSProvPartProg/Downloads/2013-08-22-eNews.pdf.

The update is included in the Thursday, August 22, 2013 MLN Connects Provider eNews Release. On page 8 of the document in the third section there is a heading of “Replacement of Home Oxygen Services in the Event that a Supplier Exits the Medicare Oxygen Business” containing the details.

Below is the text from the document:

Replacement of Home Oxygen Services in the Event that a Supplier Exits the Medicare Oxygen Business

Effective immediately, CMS will allow for the replacement of oxygen equipment in cases where a supplier exits the
Medicare oxygen business and is no longer able to continue furnishing oxygen and oxygen equipment. In these
instances, the oxygen equipment will be considered lost and a new 36-month rental period and reasonable useful
lifetime will begin for the new supplier furnishing replacement oxygen equipment on the date that the replacement
equipment is furnished to the beneficiary.

Suppliers exiting the Medicare oxygen business with patients that they were unable to transfer to new suppliers should
be aware that they are in violation of the statutory and regulatory requirements for furnishing oxygen equipment both
before and after the payment cap. As such, oxygen suppliers that do not fulfill their oxygen obligations and voluntarily
exit the Medicare oxygen business are not in compliance with the Durable Medical Equipment, Prosthetics, Orthotics,
and Supplies (DMEPOS) supplier standards set forth at 42 CFR 424.535(c).

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