CMS Pub. 100-02, ch. 15, § 110.4

B3-2100.6, A3-3113.5, HO-235.5, HHA-220.6

Payment can be made for the purchase of DME even though rental payments may have been made for prior

months. This could occur where, because of a change in his/her condition, the beneficiary feels that it would

be to his/her advantage to purchase the equipment rather than to continue to rent it.

A beneficiary may sell or otherwise dispose of equipment for which they have no further use, for example,

because of recovery from the illness or injury that gave rise to the need for the equipment. (There is no

authority for the program to repossess the equipment.) If after such disposal there is again medical need for

similar equipment, payment can be made for the rental or purchase of that equipment.

However, where an arrangement is motivated solely by a desire to create artificial expenses to be met by the

program and to realize a profit thereby, such expenses would not be covered under the program. The

resolution of questions involving the disposition and subsequent acquisition of durable medical equipment

must be made on a case-by-case basis.

Cases where it appears that there has been an attempt to create an artificial expense and realize a profit

thereby should be developed and when appropriate denied. After adjudication the DME MAC would refer

such cases to the program integrity specialist in the RO.

When payments stop because the beneficiary’s condition has changed and the equipment is no longer

medically necessary, the beneficiary is responsible for the remaining noncovered charges. Similarly, when

payments stop because the beneficiary dies, the beneficiary’s estate is responsible for the remaining

noncovered charges.

Contractors do not get involved in issues relating to ownership or title of property.