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<strong>CMS</strong>-1403-FC<br />

shoes, the regulation is being updated to reflect the fact<br />

that fee schedules were implemented on January 1, 2005, in<br />

accordance with the requirements of MMA section 627. Since<br />

the fees themselves are not impacted by this change,<br />

suppliers are likewise not impacted by this change. In the<br />

1033<br />

case of oxygen and oxygen equipment, as explained in section<br />

S.9. below, it is difficult to estimate the impact of<br />

section 144(b) of the MIPPA on small entities and oxygen and<br />

oxygen equipment suppliers in general. Nevertheless, we do<br />

believe that the net impact on small entities and other<br />

suppliers of oxygen and oxygen equipment will be positive<br />

rather than negative. <strong>This</strong> is based on the fact that this<br />

change allows suppliers to retain ownership of oxygen<br />

equipment in all cases when it is no longer needed by the<br />

beneficiary. Prior to this change, suppliers were required<br />

to relinquish ownership of oxygen equipment after 36<br />

continuous rental months. While suppliers will be required<br />

to continue furnishing the equipment after the 36-month<br />

rental period for up to 2 additional years in some cases<br />

until the 5 year reasonable useful lifetime of the equipment<br />

ends, they will retain ownership of equipment when it is no<br />

longer needed and can furnish the equipment to other<br />

patients. Although suppliers will not be paid for non-<br />

routine maintenance or repair of oxygen equipment they own<br />

and furnish to Medicare beneficiaries, the equipment itself<br />

is very dependable and requires very little maintenance and<br />

servicing, so this change should not significantly impact

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