Inexpensive and Routinely Purchased - JA DME

• Inexpensive DME - This category is defined as equipment whose purchase price does not exceed $150.
• Other Routinely Purchased DME - This category consists of equipment that is purchased at least 75 percent of the time.

Payment for this type of equipment is for rental or lump sum purchase. The total payment amount may not exceed the actual charge or the fee for a purchase.

Modifiers used in this category are as follows (these modifiers are not all-inclusive):

• RR Rental
• NU Purchase of new equipment. Only use if new equipment was delivered.
• UE Purchase of used equipment.

Used equipment is any equipment that has been purchased or rented by someone before the current purchase transaction. Used equipment also includes equipment that has been used under circumstances where there has been no commercial transaction, e.g., equipment used for trial periods or as a demonstrator.

Per the DMEPOS Supplier Standard number 5, a supplier must advise beneficiaries that they may rent or purchase inexpensive or routinely purchased durable medical equipment and of the purchase option for capped rental equipment.*

*Although CMS has revised payment rules for capped rental items, supplier standard 5 still applies for inexpensive and routinely purchased items that do not fall into the capped rental category and applicable capped rental items (i.e. complex rehabilitative power wheelchairs and parental/enteral pumps, etc.).

• Many suppliers have included this requirement on the proof of delivery document for compliance to this rule.