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Are competitively bid capped rental items subject to the payment reduction after the 3rd month rental?

Yes. Under competitive bidding, payment for capped rental DME items is made in an amount equal to 10 percent of the single payment amount for each of the first 3 months and 7.5 percent of the single payment amount for the remaining 4 through 13 months of rental. The supplier is required to transfer title to the equipment to the beneficiary after 13 months of continuous use.