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(3) 55 cochlear implant zinc air batteries per month. (h) The department will pay a hearing services provider for the reasonable and necessary costs of delivering a hearing item, not to exceed the amount set in 7 AAC 145.340, as follows:

(1) the cost on invoice of delivering a hearing item from the hearing services provider to a recipient who resides outside the municipality where the business of the hearing services provider is located if

(A) the hearing item is unavailable in the municipality in which the recipient resides; and

(B) the hearing services provider submits a receipt for the delivery cost with the claim for payment;

(2) the cost on invoice of delivering a hearing item from the manufacturer to the hearing services provider following the manufacturer’s repair of that hearing item if the hearing services provider submits with the claim for payment a copy of the manufacturer’s invoice showing the cost of delivery to the hearing services provider. (i) When a damaged hearing item is no longer covered under the manufacturer’s warranty, the department will pay a hearing services provider separately for the labor necessary to

(1) assess a damaged hearing item; and

(2) repair a damaged hearing item. (j) The department will pay for the labor, repair, or replacement cost of a hearing item only if the repair or replacement is necessary for the hearing item to function as intended. A claim submitted to the department for the labor, repair, or replacement of a hearing item must include

(1) a statement signed by the recipient or the recipient’s representative that describes the cause for and nature of the repair;

(2) a description of the hearing item being repaired and its serial number, if available;

(3) the beginning and end dates of warranty coverage, if available; and

(4) documentation for labor charges that includes the amount of time spent on the repair, rounded up to the nearest quarter hour, and the hourly rate charged for the repair. (k) The department will not pay for labor, repair, or replacement costs if

(1) the hearing item is covered under a manufacturer’s or supplier’s warranty;

(2) the hearing item needs repair because of a manufacturer’s defect; or

(3) the labor, repair, or replacement has already been paid for as a dispensing fee under (b)(4) of this section.