decisionhealth Newsletters, Answer Books - 2006 Issue 7 (July)
Medicare_Benefit_Policy_Manual / Chapter_15 / 110.1
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Article Overview
This page from the Medicare Benefit Policy Manual addresses the definition of durable medical equipment and the general policy framework used to assess whether an item can be considered DME for Medicare purposes. It outlines broad topics such as durability, medical nature, necessity and reasonableness, special exceptions, beneficiary home status, and related manual references. The content is useful for billing, coding, DME supplier, and Medicare compliance audiences who need to understand the scope of the policy guidance rather than a code-specific rule set.
Why This Topic Matters
Understanding how Medicare defines and evaluates DME is important for determining whether equipment falls within covered benefit categories and whether payment considerations apply in a given setting.
Article Sections
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Definition of Durable Medical Equipment
Introduces the basic Medicare definition of durable medical equipment and the overarching criteria used to assess items under this policy.
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A - Durability
Discusses the durability concept and the types of items generally treated as non-durable or categorized elsewhere.
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B - Medical Equipment
Covers the general policy for determining whether equipment is medical in nature and the kinds of development that may be considered.
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1. Equipment Presumptively Medical
Lists categories of equipment that are generally treated as medical equipment for policy purposes and notes related cross-references.
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2. Equipment Presumptively Nonmedical
Describes broad categories of equipment that are generally not considered medical equipment because of their customary nonmedical use.
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3. Special Exception Items
Summarizes the limited exception category for certain items that may be covered under specific circumstances.
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C - Necessary and Reasonable
Addresses the general Medicare requirement that DME be necessary and reasonable for the patient’s condition.
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1 - Necessity for the Equipment
Explains the broad standard used to evaluate whether equipment contributes meaningfully to treatment or improvement.
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2 - Reasonableness of the Equipment
Discusses considerations used to assess whether the item is reasonable for Medicare payment in light of alternatives and cost.
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3 - Payment Consistent With What is Necessary and Reasonable
Addresses payment alignment with medically required features and alternatives that meet the patient’s needs.
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4 - Establishing the Period of Medical Necessity
Covers how the duration of medical necessity is generally determined and points to related review guidance.
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D - Definition of a Beneficiary’s Home
Explains how Medicare treats a beneficiary’s home for DME rental and purchase purposes and discusses institutional settings.
What You Will Learn
- How Medicare defines durable medical equipment at a high level
- What policy factors are used to assess durability and medical purpose
- How Medicare frames necessity, reasonableness, and special exceptions for equipment
- How a beneficiary’s home status affects DME rental and purchase considerations
- Which related Medicare manuals are referenced for additional guidance
Who Should Read This
- Medical coders
- DME suppliers
- Billing staff
- Revenue cycle professionals
- Medicare compliance teams
- Healthcare administrators
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