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

payments are made should use the AQ modifier to receive the<br />

HPSA bonus payment.<br />

Subpart D--Payment for Durable Medical Equipment and<br />

Prosthetic and Orthotic Devices<br />

26. Section 414.210 is amended by--<br />

A. Revising paragraphs (e)(1) and (2).<br />

B. Removing paragraph (e)(3).<br />

C. Redesignating paragraphs (e)(4) and (e)(5) as<br />

paragraphs (e)(3) and (e)(4), respectively.<br />

D. Revising newly redesignated paragraphs (e)(3)(ii),<br />

(e)(3)(iii), and (e)(4).<br />

The revisions read as follows:<br />

§414.210 General payment rules.<br />

* * * * *<br />

(e) * * *<br />

(1) General rule. Except as provided in paragraph<br />

(e)(3) of this section, the carrier pays the reasonable and<br />

necessary charges for maintenance and servicing of<br />

beneficiary-owned equipment. Reasonable and necessary<br />

charges are those made for parts and labor not otherwise<br />

covered under a manufacturer’s or supplier’s warranty.<br />

Payment is made for replacement parts in a lump sum based<br />

on the carrier’s consideration of the item. The carrier<br />

establishes a reasonable fee for labor associated with<br />

1120

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