Code of Massachusetts Regulations
130 CMR - DIVISION OF MEDICAL ASSISTANCE
Title 130 CMR 427.000 - Oxygen And Respiratory Therapy Equipment
Section 427.423 - Purchase of Oxygen and Respiratory Therapy Equipment

Universal Citation: 130 MA Code of Regs 130.427

Current through Register 1531, September 27, 2024

(A) Payment to a provider for the purchase of oxygen and respiratory therapy equipment shall be the lowest of:

(1) the provider's usual and customary charge to the general public;

(2) the adjusted acquisition cost of the item plus a markup not to exceed:
(a) 50% for any item whose adjusted acquisition cost is less than $25;

(b) 45% for any item whose adjusted acquisition cost is $25 or greater and less than $100;

(c) 40% for any itemwhose adjusted acquisition cost is $100 or greater and less than $200;

(d) 35% for any item whose adjusted acquisition cost is $200 or greater and less than $300; or

(e) 30% for any item whose adjusted acquisition cost is $300 or greater; and

(3) the fee set forth in the applicable fee schedule of the Division of Health Care Finance and Policy.

(B) When oxygen is provided in partially full tanks, the rate of payment shall be prorated by multiplying the maximum allowable fee by the percentage of the complete tank consumed.

(C) Payment for the following is included in the fee for the purchase of gaseous and liquid oxygen calculated in accordance with 130 CMR 427.423(A):

(1) delivery of gaseous or liquid oxygen, including the cost of 24-hour service;

(2) instruction of the recipient and caregiver, if any, in the safe and proper use of oxygen; and

(3) accessories required for the initial setup.

(D) Payment for the following is included in the fee for the purchase of oxygen and respiratory therapy equipment calculated in accordance with 130 CMR 427.423(A):

(1) delivery to and installation at the site where the equipment will be used;

(2) instruction of the recipient and caregiver, if any, in the proper operation of the equipment; and

(3) accessories required for the initial setup.

(E) Purchased oxygen and respiratory therapy equipment must be:

(1) clean and sterilized when appropriate;

(2) in proper working condition; and

(3) new at the time of purchase, except for equipment purchased pursuant to 130 CMR 427.425.

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