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    New Rules for Medicare Oxygen Payment Take Effect
    January 1, 2009

    New Rules for Medicare Oxygen Payment Take Effect

    Starting January; new rules for Medicare oxygen payment took effect. Under previous law, Medicare paid oxygen suppliers a monthly rental fee for the duration of beneficiary use of home oxygen equipment. Now Medicare reimbursements are limited to the first 36 months of rental payment. During this initial time period, Medicare beneficiaries will be responsible for a 20 percent co-pay. After 36 months, the supplier still owns the equipment and is obligated to continue to service the equipment at no cost to the beneficiary for an additional two years. The patient co-pay ends after 36 months of rental payment.

    Oxygen suppliers are required to service the equipment over five years–the estimated life cycle of oxygen equipment–including maintenance and repairs. Limited maintenance payments will be made for trans-filling and concentrator systems after the 36-month period. Medicare will continue to make monthly payments for delivery of liquid or compressed oxygen. At no point does the ownership of the oxygen equipment automatically transfer to the patient. At the end of five years, the equipment can be replaced, which would start a new cycle of 36-month rental payments and beneficiary co-pays.

    These new rules appear to causing confusion in both the oxygen provider and patient community. The ATS is aware of anecdotal reports that some oxygen suppliers are sending information to oxygen users, implying that certain types of oxygen equipment are no longer available due to the new rules. Physicians should be aware of the changing rules and reassure their patients that home oxygen will continue to be available to Medicare beneficiaries. For more information on the new oxygen payment rules, please visit the CMS Web site at http://www.medicare.gov/Publications/pubs/pdf/11405.pdf


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