Medicare Claims Processing Manual (Pub. 100-04), Ch. 30 § 150.2
Items and Services Furnished on an Unassigned Basis on or
150.2 - Items and Services Furnished on an Unassigned Basis on or
After January 1, 1995
(Rev. 1, 10-01-03)
Nonparticipating suppliers which (1) Do not accept assignment, (2) Do not claim
payment after the death of the beneficiary, and (3) Do not bill under the indirect payment
procedure, if held to be liable, must refund to beneficiaries any amounts collected for
medical equipment and supplies for which Medicare payment is denied for one of the
following reasons:
• Under §1834(a)(18)(A) of the Act, the supplier violated the prohibition on
unsolicited telephone contacts under §1834(a)(17)(B) of the Act; or
• Under §1834(j)(4) of the Act, the supplier did not meet supplier number
requirements under §1834(j)(1); or the item is denied in advance under
§1834(a)(15) of the Act; or payment is denied as not reasonable and necessary
under §1862(a)(1) of the Act.
In any such payment denial under §1834(a)(17)(B), §1834(j)(1), §1834(a)(15), or
§1862(a)(1) of the Act, the beneficiary has no financial responsibility and the refund
provisions of §§1834(a)(18), 1834(j)(4) or 1879(h) of the Act, as appropriate, apply, if it
is held that the supplier knew or should have known of the likelihood that payment would
be denied and that the beneficiary did not know.
For medical equipment and supplies furnished prior to January 1, 1995, Federal law does
not limit beneficiaries’ liability with respect to unassigned claims for which payment was
denied.