DME is not billed one way. Purchase, capped rental, continuous rental and rent-to-purchase each have their own modifiers, month counts and traps. Bill the wrong type and the claim dies.
Every DME item falls into one of these payment methods.
One-time payment for inexpensive items like canes, crutches, commodes and nebulizers. Billed with NU (new equipment) or UE (used) modifiers.
Expensive equipment like wheelchairs and hospital beds. Medicare rents it for up to 13 months, then ownership transfers to the patient. Modifiers KH (month 1), KI (months 2-3), KJ (months 4-13) track the sequence.
Oxygen equipment rents month after month for as long as it is medically necessary. No 13-month cap - but continued need must be documented or payments stop.
Monthly rental payments count toward the purchase price. Common for items the patient will eventually own but cannot buy outright on day one.
The major DME families and where the billing risk sits in each.
| Category | Example codes | Billing watch-out |
|---|---|---|
| Mobility | K0001-K0009 wheelchairs, E0100-E0159 canes, crutches, walkers | Capped rental modifier sequencing across 13 months. One wrong KH/KI/KJ and the month denies. |
| Oxygen / Respiratory | E0430-E0444, E1390 concentrator, E0601 CPAP | Continuous rental needs ongoing medical-necessity documentation. CPAP compliance data is frequently requested. |
| Diabetic Supplies | A4253 test strips, E0607 glucose monitor, E0784 insulin pump | Quantity limits are strict. Refill timing rules trigger denials when supplies ship too early. |
| Prosthetics / Orthotics | L codes: L4360 walking boot, L1900 AFO | L codes need detailed functional documentation. Off-the-shelf vs custom-fitted changes everything. |
| Urological / Ostomy | A4351-A4353 ostomy pouches, A4338 catheters | Monthly quantity caps. Exceeding the cap without KX and records means denial. |
| Wound Care | A6196-A6406 dressings by size and type | Dressing size must match wound size in the notes. Mismatches are a top audit target. |
| Enteral Nutrition | B4034-B4162 formulas and pump supplies | Coverage requires documented inability to maintain weight with oral intake. |
Medicare DME claims go to one of four regional contractors. Sending to the wrong MAC means instant rejection.
| Jurisdiction | Contractor | States covered |
|---|---|---|
| A | Noridian | CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT |
| B | CGS Administrators | IL, IN, KY, MI, MN, OH, WI |
| C | CGS Administrators | AL, AR, CO, FL, GA, LA, MS, NC, NM, OK, SC, TN, TX, VA, WV, plus Puerto Rico and the US Virgin Islands |
| D | Noridian | AK, AZ, CA, HI, IA, ID, KS, MO, MT, NE, NV, ND, OR, SD, UT, WA, WY, plus American Samoa, Guam and the Northern Mariana Islands |
DME lives and dies on modifiers.
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