June 14, 2023
Manufacturer or Supplier Warranty Documentation for Repairs
Suppliers must keep copies of any manufacturer or supplier warranties for equipment being repaired and provide this documentation if requested. Federal regulations at 42 CFR 414.210(e)(4)
define the payment rules for supplier replacement of beneficiary-owned equipment based on accumulated repair costs.
If a title to a capped rental item, such as a power wheelchair, is transferred to the beneficiary, the supplier is still responsible for furnishing replacement equipment at no cost to the beneficiary or to the Medicare program for the 5-year reasonable useful lifetime for the equipment. In making this determination, the DME MACs may consider whether the accumulated costs of repair exceed 60 percent of the cost to replace the item.
Payment may be made for reasonable and necessary charges for maintenance and servicing of beneficiary-owned equipment. Reasonable and necessary charges are those made for parts and labor not otherwise covered under a manufacturer’s or supplier’s warranty.
Please review the information in section 9 of Supplier Manual Chapter 5
for additional information about coverage of repairs.
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