Medicare Standards

omply with all Federal, State and Local regulations pertaining to the operation of our business, including licensing, accreditation, etc. We have certified in our application for billing privileges that we meet and will continue to meet the following standards. Quality will:

1. Operates its business and furnishes Medicare-covered items in compliance with all applicable Federal and State licensure and regulatory requirements;

2. Has not made, or caused to be made, any false statement or misrepresentation of a material fact on its application for billing privileges. (The supplier must provide complete and accurate information in response to questions on its application for billing privileges. The supplier must report to CMS any changes in information supplied on the application within 30 days of the change.);

3. Must have the application for billing privileges signed by an individual whose signature binds a supplier;

4. Fills orders, fabricates or fits items from its own inventory or by contracting with other companies for the purchase or items necessary to fill the order. If it does, it must provide, upon request, copies of contracts or other documentation showing compliance with this standard. A supplier may not contract with any entity that is currently excluded from the Medicare program, any State health care programs, or from any other Federal Government Executive Branch procurement or nonprocumrement program or activity;

5. Advises beneficiaries that they may either rent or purchase inexpensive or routinely purchased durable medical equipment, and of the purchase option for capped rental durable medical equipment, as defined in the Code of Federal Regulations (42CFR%414.220(a)). (The supplier must provide, upon request, documentation that it has provided beneficiaries with this information, in the form of copies of letters, logs, or signed notices.);

6. Honors all warranties expressed and implied under applicable State law. A supplier must not charge the beneficiary or the Medicare program for the repair or replacement of Medicare covered items or for services covered under warranty. This standard applies to all purchased and rented items, including capped rental items, as described in the Code of Federal Regulations (42 CFR%414.229). The supplier must provide, upon request, documentation that it has provided beneficiaries with information about Medicare covered items covered under warranty, in the form of copies of letters, logs or signed notices;

7. Maintains a physical facility on an appropriate site. The physical facility must contain space for storing business records including the supplier's delivery, maintenance, and beneficiary communication records. For purposes of this standard, a post office box or commercial mailbox is not considered a physical facility. In the case of a multi-site supplier, records may be maintained at a centralized location;

8. Permits CMS, or its agents to conduct on-site inspections to ascertain supplier compliance with the requirements of this section. The supplier location must be accessible during reasonable business hours to beneficiaries and to CMS, and must maintain a visible sign

Supplier Standards

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and posted hours of operation;

9. Maintains a primary business telephone listed under the name of the business locally or toll-free for beneficiaries. The supplier must furnish information to beneficiaries at the time of delivery of items on how the beneficiary can contact the supplier by telephone. The exclusive use of a beeper number, answering service, pager, facsimile machine, car phone or an answering machine may not be used as the primary business telephone for purposes of this regulation;

10. Has a comprehensive liability insurance policy in the amount of at least $300,000 that covers both the supplier's place of business and all customers and employees of the supplier. In the case of a supplier that manufactures its own items, this insurance must also cover product liability and completed operations. Failure to maintain required insurance at all times will result in revocation of the supplier's billing privileges retroactive to the date the insurance lapsed;

11. Must agree not to contact a beneficiary by telephone when supplying a Medicare-covered item unless one of the following applies:

k. The individual has given written permission to the supplier to contact them by telephone concerning the furnishing of a medicare-covered item that is to be rented or purchased.

b. The supplier has furnished a Medicare-covered item to the individual and the

supplier is contacting the individual to coordinate the delivery of the item.

c. If the contact concerns the furnishing of a Medicare