Medical Directors Stick with Repair Policy

ARLINGTON, Va. — The American Association for Homecare reported last week that the four DME MAC medical directors have declined to withdraw CMS’ new repair policy, which took effect April 1.

The billing policy limits Medicare coverage for the labor component of equipment repairs, allowing only a certain number of repair units of service (at 15 minutes each) for commonly repaired items.

“Medicare beneficiaries will be adversely affected because home medical equipment providers cannot afford to perform repairs in the limited time that the DME MACs have determined to be billable,” AAHomecare told the medical directors in a letter. “As a result, many HME providers will be unable to provide the needed items and service to Medicare beneficiaries.”

But in a response to AAHomecare’s request to withdraw the controversial policy, the medical directors disagreed with the association’s assessment. In a Wednesday update, AAHomecare said the medical directors “believe they have the authority to make determinations regarding payment amounts and units of service allowed for labor associated with repairs, maintenance and servicing of beneficiary-owned DME or oxygen equipment not covered under the supplier’s or manufacturer’s warranty.”

The medical directors also noted that reimbursement for repair time includes reimbursement for travel to the beneficiary’s home. “Travel costs are bundled into the reasonable fee established for labor and are not separately billable,” the medical directors’ response stated.