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Title 7 . Health and Social Services
Chapter 43 . Hearings
Section 1940. Rental of items; general provisions

7 AAC 43.1940. Rental of items; general provisions

(a) The department will give prior authorization for the following rentals of durable medical equipment:

(1) rental for anticipated short-term use;

(2) capped rental, if

(A) a short-term rental becomes long-term and the total rental period is 12 months; or

(B) an item requires rental but the department limits payment to no more than 12 months;

(3) continuous rental of an item that requires frequent servicing and maintenance, including an apnea monitor and oxygen equipment, and of a breast pump.

(b) Regardless of the type of rental under (a) of this section,

(1) the department will only pay the remaining portion of the full purchase price, not rental plus the full purchase price; the provisions of this paragraph do not apply to an item that is continuously rented under (a)(3) of this section;

(2) the department will review the length of need for the item and its cost before authorizing payment for rental or purchase;

(3) the cost of any necessary repair, return shipping, or maintenance is included in the rental fee; and

(4) when total rental payments reach the purchase price, except for an item that is continuously rented under (a)(3) of this section, repair is covered after 60 days or when the warranty expires, whichever is later.

(c) Subject to applicable requirements of 7 AAC 43.1900 - 7 AAC 43.1980, the department will pay for the capped rental of an item if the provider

(1) transfers ownership of the item, including any warranty, to the recipient for whom it was rented; and

(2) replaces the item with a new item if it was previously used by a person other than the recipient before it was rented to the recipient.

History: Eff. 1/11/2006, Register 177

Authority: AS 47.05.010

AS 47.05.015

AS 47.07.030

AS 47.07.040


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Last modified 7/05/2006