The Centers for Medicare and Medicaid Services (CMS)

Answers Frequently Asked Questions About

Home Oxygen Reimbursement

Source: CMS, US Department of Health and Human Services

What is included in the DME category.

Answer

Durable Medical Equipment includes, but is not limited to:

* Diabetic supplies

* Canes, crutches, walkers

* Commode chairs

* Home oxygen equipment

* Hospital beds

* Power Operated Vehicles (POVs or scooters)

* Seat lift mechanisms

* Traction equipment

* Wheelchairs

How does Medicare pay for oxygen and oxygen equipment.

Answer

Medicare pays suppliers a monthly fee for furnishing all medically necessary

oxygen and oxygen equipment, including accessories and supplies like tubing or a

mouthpiece. Assuming that you have no unmet Part B deductible, Medicare pays 80

percent of the allowed amount and you pay 20 percent of the allowed payment

amount. After 36 months of continuous use, Medicare stops making rental payments

for the oxygen equipment, but you will continue to get the oxygen equipment,

accessories, and supplies from the same supplier at no charge until the end of the

reasonable useful lifetime of the oxygen equipment (generally 5 years after the date

that the equipment was delivered to you). At the end of the equipment's reasonable

useful lifetime, the supplier can pick up the equipment and you can get new equipment

if it is determined that you still have a medical need for oxygen. When you get the new

equipment, Medicare starts a new 36 month rental payment period. If you get liquid or

gaseous oxygen delivered in tanks or cylinders, your supplier must continue to deliver

replacement tanks or cylinders after the 36 month rental period ends, and Medicare will

continue to pay for delivery of oxygen contents in these tanks and cylinders.

What happens after the 36 month oxygen rental period.

Answer

After 36 months, Medicare stops making rental payments for oxygen equipment,

but you will continue to get the oxygen equipment and accessories from the same

supplier at no charge for any period of medical need until the end of the reasonable

useful lifetime of the oxygen equipment (generally 5 years after the date that the

equipment was delivered to you). When the equipment comes to the end of its

reasonable useful lifetime, your supplier can pick up the equipment and you can get