Maintenance and Service of Capped Rental Items (Rev. 1, 10-01-03)

by  Jared Staheli
June 17th, 2015

For capped rental items which have reached the 15-month rental cap, contractors pay claims for maintenance and servicing fees after six months have passed from the end of the final paid rental month or from the end of the period the item is no longer covered under the supplier's or manufacturer's warranty, whichever is later. For example:

Date service begins: 1/5/01
15-month rental period ends: 4/4/02 (1/5/01 + 15 months)
6-month period when no payment is made (4/5/02 + 6 months): 4/5/02 - 10/4/02
Date maintenance and servicing payment may begin: 10/5/02
Payment covers all maintenance and servicing through (10/5/02+ 6 months): 4/4/03

The maintenance and servicing fee for capped rental items may be paid only once every 6 months. However, in the event the beneficiary elected to purchase the equipment, maintenance and servicing are paid in accordance with the instructions in §40.1.


Maintenance and Service of Capped Rental Items (Rev. 1, 10-01-03). (2015, June 17). Find-A-Code Articles. Retrieved from

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