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Act Now - November 17th Grandfathering Notification Deadline

for DMEPOS Bidding Program

Once the DMEPOS competitive bidding program becomes effective on January 1, 2011, beneficiaries with Original Medicare who obtain competitively bid items in competitive bidding areas (CBAs) must obtain these items from a contract supplier for Medicare to pay, unless an exception applies. All non-contract suppliers that furnish competitively bid rented durable medical equipment (DME) or oxygen and oxygen equipment to beneficiaries in CBAs must decide if they will elect to become grandfathered suppliers, notify beneficiaries of their grandfathering decisions, and fulfill other requirements. The Centers for Medicare & Medicaid Services (CMS) would like to remind all non-contract suppliers that furnish competitively bid rented DME or oxygen and oxygen equipment to beneficiaries in CBAs of the following upcoming deadlines:

A non-contract supplier that elects to become a grandfathered supplier must provide a 30-day written notification to each Medicare beneficiary who resides in a CBA and is currently renting competitively bid oxygen and oxygen equipment or DME from that supplier. These notifications must be sent by Wednesday, November 17, 2010. A non-contract supplier that elects to become a grandfathered supplier must also provide written notification to CMS of this decision by Wednesday, November 17, 2010.
A non-contract supplier that elects not to become a grandfathered supplier is required to pick-up the item it is currently renting to the beneficiary from the beneficiary’s home after proper notification. Proper notification includes a 30-day, a 10-day, and a 2-day notice of the supplier’s decision not to become a grandfathered supplier to its Medicare beneficiaries who are currently renting competitively bid DME or oxygen and oxygen equipment and who reside in a CBA. The 30-day notification to the beneficiary must be sent by Wednesday, November 17, 2010, and must be in writing.

For more information on grandfathering requirements, please see the “DMEPOS Competitive Bidding Program Grandfathering Requirements for Non-Contract Suppliers Fact Sheet,” which is now available, free of charge, from the Medicare Learning Network® at http://www.cms.gov/DMEPOSCompetitiveBid/04_Educational_Resources.asp in the “Downloads” section.