When repairing patient owned equipment, in the event that a repair takes longer than one day to complete, there may be instances when a supplier will need to provide temporary replacement equipment (i.e. loaner equipment). Suppliers commonly struggle with how to bill for this “loaner” or “temporary replacement” equipment while performing repairs. With HCPCS K0462 (temporary replacement equipment) one unit of service is equal to one month of rental. The date of service billed for the loaner equipment must be the date that it is delivered to the patient and must be billed on the same claim as the repairs. Keep in mind that when billing for loaner equipment you must include the following information in the NTE (narrative) segment of the claim:..
- Information regarding the patient-owned equipment in the form of a HCPCS code or brand name, model name/number,
- Date of original purchase/delivery of the beneficiary owned equipment,
- A description of the replacement/loaner equipment with the manufacturer brand name and model name or number, and
- A statement of why the replacement/loaner equipment is needed (e.g. repairs to beneficiary owned equipment).
Remember that when providing loaner equipment, suppliers may only bill for one month, regardless of how long the patient has the loaner equipment. Additionally, the allowable paid by the DME MAC for that loaner equipment will be based on the lesser of the allowable for either the item/HCPCS the patient owns or the loaner equipment being provided.
For additional guidance on billing for repairs and loaner equipment, see our on-demand digital recording “The Ins and Outs of Billing for Repairs”
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