Notice: This CMS-approved document has been submitted - Philips ...

CMS-1403-FC
settings is expected to have a minimal impact on Medicare
expenditures.
9. Section 144(b): Repeal of Transfer of Title for Oxygen
Equipment
1084
The revisions pertaining to oxygen and oxygen equipment
in section III.J. of this final rule with comment period
reflect changes made by the MIPPA. Prior to the MIPPA,
section 1834(a)(5)(F) of the Act limited monthly payments to
suppliers furnishing oxygen equipment to 36 months of
continuous use. At the end of this 36-month period,
suppliers were required to transfer title to oxygen
equipment rented on or after January 1, 2006 to the
beneficiary. Section 144(b) of the MIPPA repealed the
transfer of title provision. In its place, section 144(b)
establishes a 36-month rental cap and amends section
1834(a)(5)(F) of the Act by adding additional payment rules
discussed previously in this preamble.
These changes may provide an economic benefit to
suppliers because they will now retain ownership of oxygen
equipment after 36 months of rental payments. If a
beneficiary stops needing oxygen after the 36-month rental
cap but before the end of the reasonable useful lifetime of
the equipment (currently 5 years), the supplier will be
able to retrieve the equipment and rent it to another
Medicare beneficiary or other customer and receive