Showing Whether Rented or Purchased (Rev. 2993, Upon Implementation of ICD- 10)

by  Jared Staheli
June 18th, 2015

Claims must specify whether equipment is rented or purchased. For purchased equipment, the itemized bill or claim must also indicate whether equipment is new or used. If the provider or supplier fails to indicate on an assigned claim whether equipment was new or used, the contractor processing the claims assumes purchased equipment is used and process the claim accordingly, i.e., they pay on the basis of the used purchase fee. If an unassigned purchase claim does not specify whether the item was new or used, contractors develop the claim with the supplier. The following table indicates the HCPCS modifiers which are added to the equipment code to indicate its status:

BP The beneficiary has been informed of the purchase and rental options and has elected to purchase the item
BR The beneficiary has been informed of the purchase and rental options and has elected to rent the item
BU The beneficiary has been informed of the purchase and rental options and after 30 days has not informed the supplier of his/her decision
KH DMEPOS item, initial claim, purchase or first month rental
KI DMEPOS item, second or third month rental
KJ DMEPOS item, PEN pump or capped rental months four to fifteen
NR New when rented (use the 'NR' modifier when an item that was new at the time of rental is subsequently purchased)
NU New equipment
RR Rental (use the 'RR' modifier when DME is to be rented)
UE Used durable medical equipment

HHAs report the appropriate modifier using the ASC X12 837 institutional claim format, or on Form CMS-1450 following the appropriate HCPCS code. A/B MACs (HHH) accept 7 positions in this field for data entry purposes.

References:

Showing Whether Rented or Purchased (Rev. 2993, Upon Implementation of ICD- 10). (2015, June 18). Find-A-Code Articles. Retrieved from https://www.findacode.com/articles/showing-whether-rented-or-purchased-rev-2993-upon-implementation-of-icd-10-26755.html

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