III. Medicare Supplier Standards
Below is a summary of the standards Medicare
requires of home medical equipment providers. Our company meets or exceeds all of these standards.
- A supplier must
be in compliance with all applicable Federal and State licensure and regulatory requirements.
- A supplier must provide
complete and accurate information on the DMEPOS supplier application. Any changes to this information must be reported to
the National Supplier Clearinghouse within 30 days.
- An authorized individual (one whose signature is binding) must
sign the application for billing privileges.
- A supplier must fill orders from its own inventory, or must contract
with other companies for the purchase of items necessary to fill the order. A supplier may not contract with any entity that
is currently excluded from the Medicare program, any State health care programs, or from any other Federal procurement or
- A supplier must advise beneficiaries that they may rent or purchase inexpensive or routinely
purchased durable medical equipment, and of the purchase option for capped rental equipment.
- A supplier must notify
beneficiaries of warranty coverage and honor all warranties under applicable State law, and repair or replace free of charge
Medicare covered items that are under warranty.
- A supplier must maintain a physical facility on an appropriate site.
- A supplier must permit CMS (formerly HCFA), or its agents to conduct on-site inspections to ascertain the supplier’s
compliance with these standards. The supplier location must be accessible to beneficiaries during reasonable business hours,
and must maintain a visible sign and posted hours of operation.
- A supplier must maintain a primary business telephone
listed under the name of the business in a local directory or a toll free number available through directory assistance. The
exclusive use of a beeper, answering machine or cell phone is prohibited.
- A supplier must have comprehensive liability
insurance in the amount of at least $300,000 that covers both the supplier’s place of business and all customers and
employees of the supplier. If the supplier manufactures its own items, this insurance must also cover product liability and
- A supplier must agree not to initiate telephone contact with beneficiaries, with a few exceptions
allowed. This standard prohibits suppliers from calling beneficiaries in order to solicit new business.
- A supplier
is responsible for delivery and must instruct beneficiaries on use of Medicare covered items, and maintain proof of delivery.
- A supplier must answer questions and respond to complaints of beneficiaries, and maintain documentation of such contacts.
- A supplier must maintain and replace at no charge or repair directly, or through a service contract with another
company, Medicare-covered items it has rented to beneficiaries.
- A supplier must accept returns of substandard (less
than full quality for the particular item) or unsuitable items (inappropriate for the beneficiary at the time it was fitted
and rented or sold) from beneficiaries.
- A supplier must disclose these supplier standards to each beneficiary to
whom it supplies a Medicare-covered item.
- A supplier must disclose to the government any person having ownership,
financial, or control interest in the supplier.
- A supplier must not convey or reassign a supplier number, i.e., the
supplier may not sell or allow another entity to use its Medicare billing number.
- A supplier must have a complaint
resolution protocol established to address beneficiary complaints that relate to these standards. A record of these complaints
must be maintained at the physical facility.
- Complaint records must include: the name, address, telephone number,
and health insurance claim number of the beneficiary, a summary of the complaint, and any actions taken to resolve it.
supplier must agree to furnish CMS (formerly HCFA) any information required by the Medicare statute and implementing regulations.
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