Payment for Replacement of Capped Rental Items (Rev. 1, 10-01-03)

by  Jared Staheli
June 17th, 2015

Effective May 1, 1991, if a capped rental item of equipment has been in continuous use by the patient, on either a rental or purchase basis, for the equipment's useful lifetime or if the item is lost or irreparably damaged, the patient may elect to obtain a new piece of equipment. The contractor determines the reasonable useful lifetime for capped rental equipment but in no case can it be less than five years. This is a different requirement from that in the following section about prosthetic devices that are not capped rental. Computation of the useful lifetime is based on when the equipment is delivered to the beneficiary, not the age of the equipment. If the patient elects to obtain a new piece of equipment, payment is made on a rental or purchase basis.


Payment for Replacement of Capped Rental Items (Rev. 1, 10-01-03). (2015, June 17). Find-A-Code Articles. Retrieved from

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