Earlier today, CMS issued a final rule increasing restrictions on durable medical equipment, prosthetics, orthotics and supplies (“DMEPOS”) to prevent fraud. Not only did CMS strengthen existing standards that suppliers must satisfy to provide DMEPOS to Medicare patients, but the final rule also adds several new standards. The rule becomes effective on September 27, 2010.
The new standards for DMEPOS suppliers to receive payment from the Medicare program include the following:
· Suppliers must obtain a state license for supplying oxygen if the state requires a license;
· Suppliers must remain open to the public for at least 30 hours per week, with certain exceptions;
· Suppliers must continue to maintain ordering and referring documentation from physicians or licensed practitioners; and
· Supplier must not share a practice location with other Medicare providers or suppliers, with certain exceptions.
In addition, the final rule expands the existing standards for DMEPOS suppliers to receive payment from the Medicare program, including ensuring that suppliers maintain a physical location on an appropriate site. The rule details several requirements as to what will be an appropriate site. CMS also included in the final rule language explaining that suppliers must be licensed to provide licensed services and cannot contract with another to provide those licensed services.