October 14, 2013
Medicare pays for repairs for patient owned equipment as long as the equipment is still medically necessary. Labor is covered for warranty items IF the manufacturer’s warrant states “parts only” or “labor not covered by warranty”
DMEPOS Supplier Standard #6 states the following:
“A supplier must notify beneficiaries of warranty coverage and honor all warranties under applicable State law, and repair or replace free of charge Medicare covered items that are under warranty.”
The DME MACs agree that “free of charge” does mean “free of charge” unless something is specifically excluded from the warranty.
In the scenario provided you indicate the warranty covers the parts but does not cover the labor. We would expect to see the manufacturer’s warranty specifically state “parts only” or “labor not covered by warranty”, in order for us to consider payment of the labor.
Remember it must be patient owned and not under rental