New Billing Instructions for DME Suppliers
New HCPCS Level II codes for the repair, maintenance, and servicing of oxygen equipment go into effect April 1. The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) changed how Medicare pays for oxygen equipment and supplies.
Effective Jan. 1, Medicare beneficiaries no longer own rented oxygen equipment at the end of their three-year contract; rather, suppliers retain ownership.
Suppliers, however, must continue to provide Medicare beneficiaries with properly functioning oxygen equipment and associated supplies for two years after the three-year period at no cost to beneficiaries. After five years, suppliers may replace the equipment and begin a new 36-month rental period.
For 2009 only, Medicare will also pay for routine maintenance and servicing visits for oxygen concentrators transfilling equipment every six months, starting six months after the end of the 36-month rental period.
Effective April 1, there are two new K codes to distinguish between repair or nonroutine services of beneficiary-owned durable medical equipment (DME) and oxygen equipment.
K0739 Repair or nonroutine service for durable medical equipment other than oxygen equipment requiring the skill of a technician, labor component, per 15 minutes.
K0740 Repair or nonroutine service for oxygen equipment requiring the skill of a technician, labor component, per 15 minutes.
HCPCS Level II code E1340 Repair or nonroutine service for durable medical equipment requiring the skill of a technician, labor component, per 15 minutes will be invalid for Medicare claims effective April 1.
The revised 2009 labor payment amounts for E1340 will map to K0739 once the new K codes go into effect. You should not use the new K codes prior to April 1.
Centers for Medicare & Medicaid Services (CMS) Transmittal 443, Change Request (CR) 6296, Feb. 13, provides additional billing instructions regarding repair, maintenance, and servicing of oxygen equipment.