Medicare Claims Processing Manual (Pub. 100-04), Ch. 36 § 20.6.1
Special Rules for Certain Rented Durable Medical Equipment (DME),
20.6.1 - Special Rules for Certain Rented Durable Medical Equipment (DME),
Oxygen and Oxygen Equipment (Grandfathered Suppliers and Items)
(Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08)
Suppliers that were furnishing certain rented DME, or oxygen and oxygen equipment at the time
a competitive bidding program begins in a CBA, may become grandfathered suppliers by
continuing to furnish these items to the Medicare beneficiaries who have been receiving these
items, even if the suppliers do not become contract suppliers for these items in the CBA.
Grandfathered items must be any of the following:
(1) Inexpensive or routinely purchased items furnished on a rental basis;
(2) Items requiring frequent and substantial servicing;
(3) Oxygen and oxygen equipment (not including oxygen contents, supplies or
accessories furnished for use in conjunction with beneficiary-owned equipment);
(4) Capped rental items furnished on a rental basis.