CMS Pub. 100-04, ch. 20, § 30.5.2

Effective May 1, 1991, suppliers must give beneficiaries the option of converting their

capped rental equipment to purchased equipment during their 10th continuous rental

month. DME MACs and A/B MACs (HHH) make no further rental payments after the

11th rental month for capped rental items until the supplier notifies the DME MAC or

A/B MAC (HHH) that it has contacted the beneficiary and furnished him/her with the

option of either purchase or continued rental. Information contained in Exhibit 1 may be

furnished to beneficiaries by suppliers to help them make a rent/purchase decision. DME

MACs and A/B MACs (HHH) provide copies of Exhibit 1 to suppliers. Beneficiaries

have one month from the date the supplier makes the offer to accept this option. If the

beneficiary declines or fails to respond to the purchase option, the A/B MAC (HHH) or

DME MAC continues to make rental payments until the 15-month rental cap is reached.

If the beneficiary accepts the purchase option, the DME MAC or A/B MAC (HHH)

continues making rental payments until a total of 13 continuous rental months have been

paid. The DME MAC or A/B MAC (HHH) will not make any additional rental payments

beyond the 13th rental month. On the first day after 13 continuous rental months have

been paid, the supplier must transfer title to the equipment to the beneficiary.