Current through Vol. 42, No. 1, September 16, 2024
(a)
General
provisions. Sales of medical appliances, medical devices and other
medical equipment are exempt if all of the following requirements are met:
(1) The item is a drug, medical appliance,
medical device, or medical equipment as defined in
710:65-13-169;
(2) The item is administered or distributed
by a "practitioner" or purchased or leased, by or on behalf of an individual,
pursuant to a prescription or work order of a practitioner; and
(3) The item is furnished to a Medicare or
Medicaid program recipient and the cost of said item will be reimbursed by
Medicare or Medicaid.
(b)
Documentation required when reimbursement is made to vendor. The
documentation set out in (1) through (3) of this subsection must be obtained by
the vendor and maintained as part of the vendor's records to substantiate the
exemption claimed:
(1) Name and address of
the purchaser or lessee or person on whose behalf the item is being purchased
or leased;
(2) A copy of the
prescription or work order; and
(3)
A copy of the document which shows that the person on whose behalf the item is
being purchased or leased is a Medicare or Medicaid
patient.
(c)
Documentation required when reimbursement is made directly to the
Medicare recipient. The documentation set out in this subsection must be
maintained as part of the claimant's records to substantiate the exemption
claimed:
(1) Name and address of the
purchaser or lessee or person on whose behalf the item is being purchased or
leased;
(2) A copy of the
prescription or work order;
(3) A
copy of the eligible recipient's Medicare card; and
(4) A copy of the receipt or invoice issued
by the vendor at the time of purchase, with a notation stating that the cost of
the item is reimbursable by Medicare, but that Medicare will not be billed by
the vendor.
(d)
Sales tax refund claims.
(1)
Purchases made prior to July 1, 2022. For purchases made prior to
July 1, 2022, a refund may be claimed by hospitals, nursing homes, similar
institutions and practitioners that dispense or provide medical appliances,
medical devices or medical equipment to Medicare or Medicaid patients for the
sales taxes previously paid by the institution or practitioner on such items.
The documentation set out in (A) through (C) of this paragraph must be obtained
as part of the claimant's records to substantiate the exemption claimed:
(A) Name and address of the purchaser or
lessee or person on whose behalf the item is being purchased or
leased;
(B) A copy of the
prescription or work order; and
(C)
A copy of the document which shows that the person on whose behalf the item is
being purchased or leased is a Medicare or Medicaid
patient.
(2)
Purchases made on or after July 1, 2022. For purchases made on or
after July 1, 2022, refund claims for items exempted pursuant to the provisions
of this Section will not be allowed unless the purchaser's direct payment
permit issued pursuant to
710:65-9-10 was presented to the
vendor at the time of sale and the tax was accrued by the direct pay permit
holder. To substantiate the refund claim the documentation outlined in
subsection (e) of this Section will be required.
(e)
Medical equipment purchased
pursuant to a direct payment permit. To substantiate the sales tax
exemption for certain medical equipment pursuant to subsection (a) of this
Section, a healthcare provider holding a direct pay permit must maintain,
separate from confidential patient records, the following information:
(1) Patient case number or account
number;
(2) Type of insurance;
and
(3) Item description or product
number.
(f)
Medicare and Medicaid recipients. Eyeglasses, contact lenses, and
hearing aids are considered items of "medical equipment", and if their cost
will be reimbursed by Medicare or Medicaid pursuant to the terms and conditions
set out in this Section, the sale is tax exempt.
Added at 17 Ok Reg
2677, eff 6-25-00; Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 22 Ok Reg
1561, eff 6-11-05; Amended at 25 Ok Reg 2070, eff 7-1-08; Amended at 26 Ok Reg
2354, eff 6-25-09; Amended at 27 Ok Reg 2308, eff 7-11-10; Amended at 28 Ok Reg
1844, eff 6-25-11
