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Grandfathering Information

Non-contract suppliers that are renting competitively bid durable medical equipment (DME)* or oxygen and oxygen equipment at the time the DMEPOS Competitive Bidding Program is implemented may choose to become grandfathered suppliers for these items. A non-contract supplier that chooses to become a grandfathered supplier for any product category is required to grandfather all items within that product category to all Medicare beneficiaries who are renting the DME or oxygen and oxygen equipment at the time the program is implemented (i.e., when contracts for a given round of bidding become effective). The Round 1 Recompete contracts become effective on January 1, 2014.

Notification Requirements
Non-contract suppliers must provide written notification of their decision whether to be a grandfathered supplier to all of their Medicare beneficiaries who reside in a competitive bidding area (CBA) and are currently renting competitively bid DME or oxygen and oxygen equipment at least 30 business days prior to program implementation. The notification must inform the beneficiaries about their decision whether to grandfather and explain the grandfathering process and the beneficiaries' options.

*Rented DME items include standard nebulizers, standard manual wheelchairs, group 1 support surfaces, group 2 support surfaces, transcutaneous electrical nerve stimulation devices (TENS), commode chairs, patient lifts, seat lifts, negative pressure wound therapy (NPWT) pumps, external infusion pumps, continuous positive airway pressure devices (CPAPs), respiratory assist devices (RADs), walkers, standard power wheelchairs, scooters, and hospital beds. Items in the enteral nutrients, equipment and supplies product category cannot be grandfathered.

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Grandfathering Requirements for Non-Contract Suppliers Fact SheetOpen in New Window
Suppliers that are not awarded a competitive bidding contract for furnishing rented DME and/or oxygen and oxygen equipment in a CBA can decide to be grandfathered suppliers for beneficiaries to whom they are furnishing these items at the time the competitive bidding program is implemented.

last updated on 11/12/2013


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