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CMS Proposes Changes to DMEPOS Supplier Standards

Device Regulation Alert: Safety, Compliance and Reimbursement News, February 18, 2008

Interested parties have until March 25 to comment on new and revised enrollment standards Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers must meet to establish and maintain billing privileges for Medicare.

DMEPOS suppliers must first satisfy enrollment standards to be eligible to bill Medicare for providing items and services to Medicare beneficiaries. The proposed changes are intended to help ensure reputable and quality suppliers provide durable medical equipment, prosthetics, and orthotics to Medicare beneficiaries.

CMS announced the proposal in a January 25 Federal Register notice. New standards include:

1. Requiring DMEPOS suppliers to maintain documentation about the DME order for seven years after a Medicare claim is paid
2. Prohibiting DMEPOS suppliers from sharing a location with another supplier
3. Requiring DMEPOS suppliers to be open at least 30 hours per week except those providing custom-fit orthotics or prosthetics
4. Disqualifying suppliers that have IRS or state tax delinquency

The proposed revisions to existing standards include:

1. Clarifying that suppliers must meet state licensure requirements and can't instead contract with other licensed individuals or entities to provide the services.
2. Enhancing the definition of "appropriate site" in the requirement that suppliers have a physical facility at an appropriate site. CMS is asking for comments about whether a minimum square footage should be imposed.
3. Prohibiting suppliers from meeting the "business phone" requirement by using cell phones, beepers, and call forwarding to cell phones or beepers during hours of operation.
4. Clarifying liability insurance requirements.

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