-Require DMEPOS suppliers to notify the NSC of any adverse legal action, change of location, and change of ownership. A supplier who fails to report the required information within 30 days would not be eligible to receive Medicare payments, and any payments received by the supplier while out of compliance would be treated as overpayments and will need to be returned to Medicare.
-Prohibit suppliers from sharing a practice location with another Medicare supplier;
-Require suppliers to maintain ordering and referring documentation received from the physician or other treating profession for seven years; and
-Prohibit DMEPOS suppliers that have a Federal or state tax delinquency from obtaining billing privileges or retaining billing privileges they have already been granted.
The proposed rule would also strengthen existing standards by:

-Requiring that suppliers maintain a location or office at an appropriate site where they store business records and retain documentation of orders and referrals;
-Requiring that the NSC be listed as a certificate holder on the comprehensive liability insurance policy;
-Expanding the existing limitation on when and how a supplier may contact Medicare beneficiaries; and
-Limiting the use of cell phones, beeper numbers, pagers, and the exclusive use of answering machines and services as the primary business telephone number during posted hours of operation.

"CMS is committed to ensuring that Medicare beneficiaries are confident that the DMEPOS suppliers from whom they obtain these items are honest businesses and that they are getting quality equipment, prosthetics, orthotics, and supplies at fair prices," said Weems. "In a related effort, CMS is in the process of launching a new DMEPOS competitive bidding program that will save money for Medicare and for beneficiaries paying a coinsurance of 20 percent of the cost of a DMEPOS item, while improving quality."

The proposed rule was published in the January 25, 2008, Federal Register. Comments will be accepted until March 25, and a final rule will be published later this year.

Related Web sites: A copy of the proposed rule is posted on the Federal Register site at:

http://a257.g.akamaitech.net/7/257/2422/25jan20081800/edocket.access.gpo.gov/2008/pdf/E8-1346.pdf

The current supplier enrollment standards can be found on the National Supplier Clearinghouse's Web site at:

www.palmettogba.com/palmetto/providers.nsf/$$ViewTemplate+for+Docs?ReadForm&Providers/National+Supplier+Clearinghouse/Supplier+Enrollment/Standards+&+Compliance/DMEPOS+Supplier+Standards

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