Coverage policy
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Policy Number: CP-MCR23-009A Effective Date: January 1, 2024
Oxygen and Oxygen Equipment
The purpose of this policy is to provide clarity and specificity for coverage of Oxygen and
Oxygen Equipment for the Medicare Plan.
DISCLAIMER
Coverage Policies are developed to assist in identifying coverage for UCare benefits under UCare’s health
plans. They are intended to serve only as a general reference regarding UCare’s administration of health
benefits and are not intended to address all issues related to coverage for health services provided to
UCare members.
These services may or may not be covered by all UCare products (refer to product section of individual
coverage policy for product-specific detail). Providers are encouraged to have their UCare patient refer
to their UCare plan documents (Evidence of Coverage/Member Handbook/Member Contract) for specific
coverage information. If there is a conflict between a coverage policy and the UCare plan documents,
the UCare plan documents prevail.
Coverage Policies do not constitute medical advice. Providers are responsible for submission of accurate
and compliant claims.
Product Summary
This coverage policy applies to the following UCare products:
UCare product Applies to
UCare Individual & Family Plans (IFP), UCare IFP with M Health Fairview
UCare Medicare Plans, UCare Medicare with M Health Fairview & North
Memorial Health, UCare Advocate Plus (HMO I-SNP), EssentiaCare
UCare’s Minnesota Senior Health Options (MSHO) (HMO D-SNP)
Prepaid Medical Assistance Program (PMAP), MinnesotaCare
UCare Connect + Medicare (HMO D-SNP)
UCare Connect (SNBC)
Prepaid Medical Assistance Program (PMAP), MinnesotaCare
Minnesota Senior Care Plus (MSC+)
Benefit category:
Durable Medical Equipment and related supplies
Coverage policy
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Definitions or summary
UCare’s payment for oxygen equipment is limited to 36 monthly rental payments. Payment
for accessories (for example, cannula, tubing, etc.), delivery, back-up equipment,
maintenance and repairs is included in the rental allowance.
Payment for oxygen contents (stationary and/or portable) is included in the allowance for
stationary equipment After 36 months of continuous use, Medicare stops making
rental payments for the oxygen equipment, but, in almost all circumstances, the member
will continue to get the oxygen equipment, accessories and supplies from the oxygen supplier
with no rental charge until the end of the reasonable useful lifetime (RUL) of the
oxygen equipment (generally 5 years after the date that the equipment was delivered).
When the stationary and the portable oxygen equipment are replaced, a new 36-month rental
period and new RUL is started for both the replacement stationary oxygen equipment and the
replacement portable oxygen equipment.
REASONABLE USEFUL LIFETIME (RUL): The reasonable useful lifetime for oxygen
equipment is 5 years. The RUL is not based on the chronological age of the equipment. It
starts on the initial date of service and runs for 5 years from that date.
o RUL also does not take into account exchanges of equipment, new suppliers, or
changes of modality (concentrator, gaseous, liquid).
Oxygen equipment must be obtained from a Medicare certified oxygen supplier.
Coverage policy
UCare coverage from a Medicare-certified oxygen supplier:
o Rental of oxygen equipment
o Delivery of oxygen and oxygen contents
o Tubing and related oxygen accessories for the delivery of oxygen and oxygen
contents
o Maintenance and repairs of oxygen equipment
UCare requires a Medicare certified oxygen supplier to cover member
services for five years (60 Months).
o During the first 36 months (3yrs):
Oxygen equipment is limited to 36 monthly rental payments. Payment
for accessories (e.g., cannula, tubing, etc.), delivery, back-up
equipment, maintenance, and repairs is included in the rental allowance.
Coverage policy
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o During months 37- 60 (2yrs):
There is no further payment for oxygen equipment during the 5-year
reasonable useful lifetime (RUL) of the equipment after 36 rental
payments have been made
The oxygen supplier who provided the equipment during the 36th rental
month period is required to continue to provide the equipment,
accessories, contents (if applicable), maintenance, and repair of the
oxygen equipment during the 5-year reasonable useful lifetime of the
equipment
o At the end of 5 years (61 months and after):
At any time after the end of the 5-year reasonable useful lifetime for
oxygen equipment, the member may elect to receive new
equipment, thus beginning a new 36-month rental period.
If the member elects not to receive new equipment after the end of the
5-year reasonable useful lifetime and if the oxygen supplier retains
ownership of the equipment, all elements of this coverage policy
for months 37-60 remain in effect.
There is no separate payment for accessories or repairs.
If the member was using gaseous or liquid oxygen equipment
during the 36th rental month, payment can continue to be made
for oxygen contents.
If the member elects not to receive new equipment after the end of the
5-year reasonable useful lifetime and if the oxygen supplier
transfers ownership of the equipment to the member,
accessories, maintenance, and repairs are non-covered.
Contents are separately payable for member-owned gaseous or
liquid systems.
What happens after 36 months equipment rental?
o The oxygen supplier must continue to maintain the oxygen equipment (in good
working order) and furnish the equipment and any necessary supplies and
accessories, as long as medically necessary or until the 5-year period ends.
(The oxygen supplier cannot charge for performing these services).
o If the member uses oxygen tanks or cylinders that requires delivery of gaseous
or liquid oxygen contents, the Plan will continue to pay each month for the
delivery of contents after the 36-month rental period.
o The oxygen supplier that delivers the equipment to the member in the last
month of the 36-month rental period must continue to provide these items
Coverage policy
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(gaseous or liquid oxygen contents), as long as medically necessary, up to 5
years.
o The oxygen supplier owns the equipment during the entire 5-year period.
If the members medical need continues past the 5-year period, the supplier is no
longer required to provide the member with oxygen and oxygen equipment, and the
member has the option to get replacement equipment from any supplier.
A new 36-month payment period and 5-year supplier obligation period starts once the
previous 5-year period ends and the member receives
new oxygen and oxygen
equipment.
Not Covered
o Oxygen services furnished by an airline to a member are not covered.
Payment for oxygen furnished by an airline is the responsibility of the
member and not the responsibility of the supplier.
UCare does not cover items or services provided/used outside the
United States and its territories.
Prior authorization
Not required
Related policies and documentation
References to other policies or documentation that may be relevant to this policy
Policy Number Policy Description
None
References and source documents
Links to the UCare contracts, Center for Medicare, and Medicaid Services (CMS), MHCP,
Minnesota statute and other relevant documents used to create this policy
Medicare Plan Documents and Forms
A52514 Local Coverage Article, Oxygen and Oxygen Equipment, rev 4/1/23
Oxygen and Oxygen Equipment L33797
MHCP Provider Manual: Oxygen Equipment
Coverage policy development and revision history
Version Date Note(s)
V1 Aug.1,2023 Newpolicy
V2 Oct.13,2023 Annualreview,nochanges.