LD 1151
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LD 1151 Title Page Resolve, to Provide Adequate Reimbursement for Durable Medical Equipment Page 2 of 2
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LR 1869
Item 1

 
Sec. 1. Reimbursement for durable medical equipment. Resolved: That, by
October 1, 2001, the Department of Human Services shall amend the
rules under the Medicaid program regarding reimbursement for
durable medical equipment to repeal the rules adopted in 2000 and
improve the reimbursement process and increase the reimbursement
level. Rules adopted pursuant to this section are major
substantive rules as defined by the Maine Revised Statutes, Title
5, chapter 375, subchapter II-A. The rules are subject to the
requirements of this section.

 
1. The Medicare fee schedule must be adopted for all "A" code
equipment and rental equipment. The Medicare rate must be
adopted for service labor. Medicare standards and rates must be
adopted for respiratory equipment.

 
2. Reimbursement must be based on manufacturer's suggested
pricing less 15% on purchased equipment. Distinctions between
new and used equipment must be eliminated. All copays must be
fully reimbursed. Reimbursement for labor must include all time
in providing products and services, portal to portal, and must
include mileage. There may not be a fee cap on rehabilitation
and assistive technology.

 
3. Respiratory equipment may be changed from purchase to
rental only for frequently serviced equipment, as under the
Medicare program, such as oxygen, respiratory therapy equipment
and ventilators.

 
4. Prior authorization in Medicaid requirements must be
simplified as follows.

 
A. The types of equipment requiring prior authorization
must be reduced in number and limited to costs over $1,000
for replacement parts and costs over $500 for other items
and services. Prior authorization for rental and
respiratory equipment must be eliminated. The Medicare
certificate of medical necessity guidelines must be adopted.

 
B. Reimbursement for Group II support services must follow
Medicare codes, guidelines and fee schedules.

 
C. Decisions regarding prior authorizations must be made
within 14 days or will be considered to be granted. There
must be criteria for emergency authorizations.

 
D. Prior authorization must be processed for electronically
powered rehabilitation equipment for individuals with dual
insurance eligibility.

 
E. Standards for determining whether rehabilitation
equipment will be purchased or rented must be clarified.


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