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NGS Issues Bulletin About Beneficiary-Owned Equipment

February 14, 2012 by Laurie Watanabe

National Government Services (NGS), the Jurisdiction B DME MAC, has issued a bulletin to remind DME suppliers of the proper procedures regarding supplies and accessories used with beneficiary-owned equipment.

In the Feb. 13 bulletin, NGS says, “Medicare will cover supplies and accessories needed for beneficiary-owned equipment that was not paid for by Medicare fee-for-service – i.e., only equipment that was paid by other insurance or the beneficiary.”

But NGS reminded suppliers that specific procedures must be followed to avoid claim denials.

The following information, NGS says, must be submitted with the initial claim in Item 19 on the CMS-1500 claim form or in the 2400.NTE segment of electronic claims:

— HCPCS code of base equipment

— Notation that the equipment is beneficiary owned

— Date that the patient obtained the equipment

Claims missing any of that information, NGS says, will be rejected with ANSI code PR-16.

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