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<regulation prefix="Regulation" num=".07" citation="COMAR 10.09.18.07" title_num="10" subtitle_num="09" chapter_num="18" heading="Payment Procedures.">
  <paragraph num="A.">
    <text>The provider shall submit request for payment on the forms designated by the Department, with attachments when applicable.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The Department reserves the right to return to the provider, before payment, all invoices not properly signed and completed and those submitted without required documentation.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The provider shall charge the Program the provider’s customary charge to the general public for similar items. If the item is free to individuals not covered by Medicaid:</text>
    <paragraph num="(1)">
      <text>The provider:</text>
      <paragraph num="(a)">
        <text>May charge the Program; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Shall be reimbursed in accordance with §D of this regulation; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The provider’s reimbursement is not limited to the provider’s customary charge.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>The Department shall reimburse providers for the purchase of covered services at the lowest of the provider’s customary charge:</text>
    <paragraph num="(1)">
      <text>For items for which Medicare has established a rate:</text>
      <paragraph num="(a)">
        <text>The Department shall pay providers 80 percent of the Medicare rates established on January 1 of each year for oxygen and respiratory equipment and supplies, which shall include all fitting, dispensing, and follow-up care; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>For respiratory equipment for which Medicare has established a capped rental rate, the purchase price shall be 9 times the current Medicare monthly rental rate; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>For items for which Medicare has not established a rate:</text>
      <paragraph num="(a)">
        <text>Oxygen and respiratory supplies at the provider's choice of the manufacturer's suggested retail price minus 41.2 percent or the provider's wholesale cost plus 37.2 percent;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Customized equipment or supplies at the provider's choice of the manufacturer's suggested retail price minus 30 percent or the provider's wholesale cost plus 40 percent; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Other oxygen and respiratory equipment at the provider's choice of the manufacturer's suggested retail price minus 41.2 percent or of the provider's wholesale cost plus 27.4 percent.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>The Department shall pay for repairs to purchased oxygen and respiratory equipment in accordance with the following:</text>
    <paragraph num="(1)">
      <text>The provider's choice of wholesale cost plus 37.2 percent or manufacturer's suggested retail price minus 31.4 percent for all materials; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Reasonable charges for labor, not to exceed the customary charges for similar services in the provider’s area unless the service is free to individuals not covered by Medicaid; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Actual charges for repairs done by other than the provider as evidenced by an invoice attached to the bill.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>The Department shall only pay separately for the following replacement items for purchased respiratory equipment, and all other replacement items shall be included in repairs and will be reimbursed according to §E of this regulation:</text>
    <paragraph num="(1)">
      <text>Mouthpiece;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Face mask;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Tracheostomy collar or T-tube.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>When any individual item or combination of items are provided as part of a complete setup, they may not be invoiced in the Program separately, but under complete setup procedure codes as listed in the fee schedule, except for replacement items as listed in §F of this regulation.</text>
  </paragraph>
  <paragraph num="H.">
    <text>The Program will approve for payment the least expensive mode of oxygen which is medically suited for the patient's condition.</text>
  </paragraph>
  <paragraph num="I.">
    <text>The Program will determine, based upon expected duration of medical need, whether oxygen related equipment will be purchased or rented. Once an item has been purchased and paid for in full, and if the Program has contributed in full or in part to the purchase, then title to the equipment shall remain with the Department, and the equipment, after use by the recipient, shall be recovered at the option of the Department.</text>
  </paragraph>
  <paragraph num="J.">
    <text>Supplemental payment on Medicare claims is made subject to the following provisions:</text>
    <paragraph num="(1)">
      <text>Deductible insurance will be paid in full;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Co-insurance will be paid in full;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Services not covered by Medicare but by the Program will be paid in accordance with the limitations of §E of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="K.">
    <text>The Department will authorize payment on Medicare claims if:</text>
    <paragraph num="(1)">
      <text>The provider accepts Medicare assignments;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Medicare makes direct payment to the provider;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Medicare has determined that services were medically justified;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The services are covered by the Program; and</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Initial billing is made directly to Medicare according to Medicare guidelines.</text>
    </paragraph>
  </paragraph>
  <paragraph num="L.">
    <text>The Department may not make direct payments to recipients.</text>
  </paragraph>
  <paragraph num="M.">
    <text>The provider may not bill the Program for:</text>
    <paragraph num="(1)">
      <text>Services rendered by mail or telephone;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Completion of forms or reports; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Broken or missed appointments.</text>
    </paragraph>
  </paragraph>
  <paragraph num="N.">
    <text>Billing time limitations for claims submitted pursuant to this chapter are set forth in COMAR 10.09.36.</text>
  </paragraph>
  <paragraph num="O.">
    <text>Oxygen and respiratory equipment and disposable medical supply rates may be increased at the Program's discretion, when the Program determines in its sole discretion that the Medicare rate creates a barrier to accessing oxygen and respiratory equipment and supplies.</text>
  </paragraph>
  <paragraph num="P.">
    <text>Refills.</text>
    <paragraph num="(1)">
      <text>For oxygen and respiratory equipment and supplies that are supplied as refills to the original order, providers shall contact the recipient or designee before dispensing the refill in order to ensure that the refilled item is necessary and to confirm any changes and modifications to the order.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The provider shall contact recipient or designee regarding the refills no earlier than 7 days before the delivery and shipping date.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>For subsequent deliveries of refills, the provider shall deliver the items no earlier than 5 days before the end of usage for the current product.</text>
    </paragraph>
  </paragraph>
</regulation>