MassHealth Procurements and Subcontracted Services

(A) The MassHealth agency in accordance with M.G.L. c.118E § 12, may issue procurements seeking qualified DME providers or suppliers to submit applications for consideration, in accordance with policies set by EOHHS. (B) Subcontracted Services. A DME provider may subcontract with other entities to provide DME. The DME provider continues to be responsible for complying with 130 CMR 450.000: Administrative and Billing Regulations and 130 CMR 409.000 when activities are performed by a subcontractor. The subcontract must be in writing and must contain, at a minimum, the following: (1) names, addresses, phone numbers, and contact names for both companies; (2) the contract term (begin and end dates); (3) a description of the DME covered under the subcontract, including the cost of each item; (4) signatures of both parties, including signature dates and position titles; (5) an established credit limit that is reasonable, based on the value of the products and services to be provided by the contractor. Collect on delivery (COD) terms are not acceptable; and (6) provisions requiring the subcontractor to meet all applicable requirements specified in 130 CMR 409.404 and 409.405. (C) A DME provider must ensure that its subcontractors of DME meet all applicable requirements specified in 130 CMR 409.404 and 409.405.