[Mary]

Oxygen patient..... has been on service for 5 years, how are company's getting patients to take a "new concentrator" to start the 36 month rental period when they have a co-pay.

[SheilaS]

I know that is a challenge. We basically offer the choice of starting with
a new machine or transferring the ownership of the current equipment to the
customer and they become responsible for the upkeep of that machine.

[DeeDee]

When they are not wanting to choose to take a new concentrator, we have been sending a regular and certified letter letting the patients know that they are no longer covered under the Medicare rental qualifications and that effective **/**/**** they become responsible for the equipment. At they time they will be billed the retail rental rate of $***.** per month or can choose to purchase the equipment at a price of...... We also let them know, in the letter, that they are responsible for all tank refills at $*.** rates, supply costs at ** per type of supply, delivery fees, etc.

About the time patient's are seeing all of these numbers, they are quickly calling to choose new equipment.

[leejgbt]

Medicare published a rule that states the patient has three options:

1. Keep the equipment and continue under capped rules. (We do not offer this choice)
2. Exchange the existing equipment for different equipment and start a new five year period.
3. Switch to a different company.

Remember Medicare says your obligation to this patient ends after five years so if the patient does not want different equipment from your company they can easily go to another company. Our policy is to give them 10 days to find another company if they will not agree to an exchange.

Beyond Reasonable Useful Lifetime
The supplier has three options once the beneficiary has reached the five year
reasonable useful lifetime (RUL).



Inform the beneficiary that the supplier will be discontinuing service and arrange

for picking up the oxygen equipment. The beneficiary will need to find a new
oxygen supplier and will start a new 36-month rental period.


Inform the beneficiary that they must receive replacement equipment and start a

new 36th month rental period, if they want to continue receiving services from

the current supplier. Coinsurance and deductible fees will apply.

o

The beneficiary should be informed that switching to a new supplier will

likely require new equipment and a new 36-month rental period.


Continue servicing the beneficiary without replacing equipment and only bill:

o

Contents for portable, if the patient qualified; or

o

Maintenance and service for concentrators and transfilling equipment –

E1390, E1391, E1392 and K0738.
If the beneficiary feels that the equipment is working fine and does not need to be
replaced, the supplier is under no obligation to continue furnishing equipment beyond

the five year reasonable useful lifetime.