Beneficiaries Entering Medicare

Equipment Retained From a Prior Payer

When a beneficiary receiving a DMEPOS item from another payer (including a Medicare Advantage plan) becomes eligible for the Medicare Fee-for-Service (FFS) program, the first Medicare claim for that item or service is considered a new initial Medicare claim for the item.  Even if there is no change in the beneficiary's medical condition, the beneficiary must meet all coverage, coding and documentation requirements for the DMEPOS item in effect on the date of service of the initial Medicare claim.

A POD is required for all items, even those in the beneficiary's possession provided by another insurer prior to Medicare eligibility. To meet the POD requirements for a beneficiary transitioning to Medicare, the supplier:

  1. Must obtain a new POD (whichever method is applicable); or,
  2. Must obtain a statement, signed and dated by the beneficiary (or beneficiary's designee), attesting that the supplier has examined the DMEPOS item, it is in good working order and that it meets Medicare requirements. 

For the purposes of reasonable useful lifetime and calculation of continuous use, the first day of the first rental month in which Medicare payments are made for the item (i.e., date of service)  serves as the start date of the reasonable useful lifetime and period of continuous use.  In these cases, the proof of delivery documentation serves as evidence that the beneficiary is already in possession of the item.

 

Last Updated Aug 14, 2018