Medicare denied appeal to cover Omnipod
DEPARTMENT OF HEALTH AND HUMAN SERVICES
DEPARTMENTAL APPEALS BOARD
DECISION OF MEDICARE APPEALS COUNCIL
Docket Number: M-15-582
Date: May 11, 2015
Snippets:
“Further, we agree with CMS that Medicare does not cover the OmniPod pods, billed as A9274, as durable medical equipment and, therefore, we reverse the ALJ’s decision and hold the appellant liable for the non-covered charges.”
“According to the manufacturer, the pod integrates the insulin reservoir, cannula, infusion set, inserter, motor and power source of a conventional pump into one device that can be worn directly on the skin.”
“The second part is the Personal Diabetes Manager (PDM), which is portable and programmable, and sends dosing instructions to the pod, records data, and can be used to test blood glucose levels.”
“The Durable Medical Equipment (DME) Medicare Administrative Contractor (MAC) initially denied coverage and on redetermination explained that the OmniPod pods are considered to be a disposable drug delivery system and, as a disposable system, the pods do not qualify under the definition of DME.”
“CMS has assigned the following codes to represent the two parts of the OmniPod system:
A9274 External ambulatory insulin delivery system, disposable, each, includes all supplies and accessories; and
E0607 Home glucose monitor.”
“The programmable PDM, which sends dosing instructions to the pump, records data, and can be used to test blood glucose levels, is coded E0607.”
" … the pod cannot withstand repeated use. It is instead an expendable item designed to be disposed after no more than three days. Thus, the pod does not qualify as DME."
“In addition, the pods are for use with the PDM, which is also not coded as an external infusion pump, but rather a home glucose monitor.”
and it goes on. Certainly there are multiple way to read and interpret the decision. While removing the BG functionality from the PDM will not insure coverage by Medicare, it will obviously remove this particular objection. Should Medicare still refuse to provide coverage, they will have to have a different determination.