MDHHS announces DMEPOS Takeback for Hospice Beneficiaries

Expect margins to get tight at your local hospice, CareLinc, and Airway Oxygen. MDHHS is clawing back payments for Hospice patient medical equipment, going back to 2019.

Important facts to note about these five (5) years of payments: one, they result from a State of Michigan error in its extremely complex billing system; two, as Medicaid overpayments, they are about to hit the headlines under DOGE.

Today's letter to Durable Medical Equipment providers (DMEPOS):

The Michigan Department of Health and Human Services (MDHHS) has identified and corrected a CHAMPS system error that incorrectly allowed payment to Durable Medical Equipment providers for equipment or medical supplies when the beneficiary was enrolled in Hospice in a nursing facility or Hospice in a residence on the date of service.

MDHHS does not separately reimburse DMEPOS providers for services related to the beneficiary’s terminal illness when the beneficiary is enrolled in a hospice program (Refer to the Medicaid Provider Manual, Hospice Chapter).

Impacted claims begin on date of service 01/01/2019. MDHHS will begin voiding claims and recouping overpayments starting on the 02/27/2025 Remittance Advice.

For questions regarding recoupment of funds for impacted claims providers may contact Provider Support by calling 1-800-292-2550 or email providersupport@michigan.gov