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February 22, 2021

Billing Update: K0462 (Temporary Replacement for Patient Owned Equipment Being Repaired)

Medicare will pay one month's rental for the temporary replacement (K0462) of a beneficiary-owned piece of equipment while it is being repaired when the repair takes more than one day. When the supplier bills HCPCS code K0462 (temporary replacement for patient owned equipment being repaired, any type), they must include the following information in the narrative section of the claim:

  1. HCPCS code, or manufacturer and brand name/number of the equipment being repaired, and date of purchase
  2. A narrative description, manufacturer and brand name/number of the replacement equipment
  3. A description of what was repaired
  4. A description of why the repair took more than one day to complete

If you receive a denial for missing information, check for messaging through the CGS Wizard or myCGS to receive additional information on what you need when you resubmit your claim.

The following is an example of how the narrative might look on a claim for a temporary PAP device out for repair:

"E0601 Pur 06/15, loaner-ResMed S8 Elite II, blower broken, PBO."

Please visit our abbreviations page to find the proper abbreviations to use in the notes section in order to fit all necessary information.

*Keep in mind that there is no fee schedule for code K0462, and payment is based on the type of replacement equipment that is provided. Payment will not exceed the rental allowance for the patient-owned equipment being repaired.


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