Medicare Claims Processing Manual (Pub. 100-04), Ch. 36 § 50.9.1
Certificates of Medical Necessity (CMN) and Capped Rental Billing
50.9.1 - Certificates of Medical Necessity (CMN) and Capped Rental Billing
(Rev. 1544, Issued: 06-26-08, Effective: 07-01-08, Implementation: 07-07-08)
Suppliers are not required to obtain a new Certificate of Medical Necessity (CMN) for situations
in which a beneficiary who was receiving a capped rental item prior to the implementation of
DMEPOS Competitive Bidding goes to a new supplier after the implementation of the DMEPOS
Competitive Bidding Program (e.g., the previous supplier decides not to become a grandfathered
supplier), unless the beneficiary’s medical necessity for the item has changed. Notwithstanding
this situation, the new supplier shall bill using the appropriate modifiers for their first rental
month (KH), the second and third rental months (KI), and all subsequent rental months (KJ).