tci Medicare Compliance & Reimbursement - 2003 Issue 31

DME: WHEN IS IT OK TO GIVE A FREE UPGRADE?

It's more often than you might think. Some suppliers might be scared off from furnishing so-called "free" upgrades due to fraud and abuse fears, but that precaution could be costing them big in inventory expenses. It's OK to furnish free durable medical equipment upgrades in some cases, says the Centers for Medicare & Medicaid Services in July 18 Transmittal No. 1809, an addition to the Medicare Carriers Manual. "Instead of using [advance beneficiary notices] and charging beneficiaries for upgraded items, suppliers in certain circumstances may decide to furnish beneficiaries with upgraded equipment but charge the Medicare program and the...

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